Home Blog A Guide to Starting a Publishing Business in Indonesia Business Setup | Company Registration | Indonesia A Guide to Starting a Publishing Business in Indonesia InCorp Editorial Team 24 August 2020 4 minutes reading time Table of Contents Main Authorities in the Publishing Business in Indonesia Requirements for Establishing a Publishing Company in Indonesia How to Register a Publishing Company in Indonesia How Cekindo can Assist With more than 260 million population and a high percentage of young people, starting a publishing company in Indonesia can be a profitable business idea. The majority of this young population read a lot and most of them are students who need published materials for their learning and studies. Statistics have shown that the total revenue of the publishing businesses in Indonesia is recorded at US$466 million every year. In addition to the conventional printed publishing business, Indonesia has seen significant demand for digital materials over the internet. This has prompted the rise of e-publishing business in the country as well. According to Statista.com, the e-publishing segment in Indonesia is forecast to hit US$220 million in 2020 with an annual growth rate of 6.5% between 2020 and 2025. This translates to US$302 million project market volume by 2025. Both conventional publishing and e-publishing industries are what foreign investors are eyeing on as starting a publishing company has become more affordable and more lucrative in Indonesia. Main Authorities in the Publishing Business in Indonesia When speaking of main authorities overseeing publishing business in Indonesia, the Indonesian Investment Coordinating Board (BKPM) is definitely on the list. This is because BKPM oversees all business activities taking place in Indonesia including publishing companies. Then, two more authorities oversee publishing businesses as well: an international body known as the International Publishers Association and the local body known as the National Press Council. The International Publishers Association is the biggest federation of publishing associations in the world and the Indonesian Publishers Association is one of its members. The International Publishers Association is responsible for protecting the publishing freedom of its member countries, and the National Press Council is in charge of the publishing industry’s regulation in Indonesia. Furthermore, the National Press Council has a similar role just like the International Publishers Association – to protect the freedom of the press in the country. Requirements for Establishing a Publishing Company in Indonesia Anyone in Indonesia, including locals, foreigners, local businesses, and foreign companies are permitted to set up a publishing company in Indonesia. As for foreigners, they will first have to get approval from the BKPM before they can establish one. After obtaining permission from BKPM, foreign individuals or businesses will have to apply for a business license and a registration certificate. How to Register a Publishing Company in Indonesia The following is a summary of steps on how you can register your publishing company in Indonesia as a foreign individual or organisation: Obtain permission from BKPM. Apply for a business license. Acquire a registration certificate. Receive all required licenses and certificates as official permission for the establishment. Register with the National Press Council. Deposit compulsory share capital amount into a corporate bank account with the business owner’s name. Obtain company incorporation form and fill it out. Submit company incorporation form along with required documents and licenses. Decide on the type of published materials. They can be newspapers, magazines, journals, books, manuals, and others. If you own a digital publishing company, your published materials can be electronic, online media content, and CDs. Once your company is formed and starts operating, do remember to review and keep up with the legal requirements to ensure compliance. How Cekindo can Assist Cekindo works with aspiring entrepreneurs from all over the world and seeing businesses succeed pushes us to be at the forefront of our industry. Our ability to combine industry expertise with business acumen and a wide network in Indonesia enables us to offer you a truly value-added service. Partner with Cekindo to discover the solutions you require to plan, start and find funding for your publishing company in Indonesia. Fill in the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Can you have a nominee arrangement when setting up PMA? A nominee arrangement is an arrangement that uses another person’s name as a subject. In Indonesia, it is prohibited. This restriction aims to prevent situations where a company is owned by one party but beneficially owned by another. According to the law, any nominee agreement between a local party and a foreign investor is deemed null and void. How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities? A PMA company in Indonesia must obtain an NIB, which also functions as: Importer Identification Number (Angka Pengenal Impor or API) Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production. General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process. Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals. What are the functions and responsibilities of a PMA company’s board and management? Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts. What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor? You can transfer the license if your local distributor agrees to change the product license holder.