The tourism and hospitality industry in Indonesia is always thriving, leading the country towards its peak of economic boom. The close proximity to many countries and its stunning landscape have particularly given this sector a much-needed push. Numerous investors have started to discover many potential business opportunities, particularly in the tour and travel business in Indonesia.
If you are one of those aspiring entrepreneurs who would like to start your own travel agency in Indonesia, you have come to the right place. This article provides you with essential information on starting a travel agency in Indonesia. Read on.
Step-by-Step Process to Set up a Travel Agency in Indonesia
Have a plan for your travel agency in Indonesia
A business plan is critical for setting up a travel agency. You should always do your due diligence through market analysis and business planning.
There are two options you can look into for your travel agency: a home-based travel agent or a brand new travel agency from scratch. Your business plan will differ based on that.
Do market research and define your niche
Market research is a continuous process. Always ask yourself the following questions:
- What kind of travel agency do you want to set up?
- What is the current demand in Indonesia or in a specific location you want to start your travel agency in?
- How can you distinguish yourself from other competitors?
Build a brand for your travel agency
A strong brand image can definitely help you stand out from the crowd. Define your Unique Selling Points (USP) or your niche and offer something that none of your competitors can.
Comply with legal requirements
Compliance with local laws is always the best policy when it comes to running your business. There are no exceptions for setting up a travel agency in Indonesia. We’ll talk more about legal requirements in the next section.
Are you going to hire local or foreign employees, full-time or part-time employees? These are the things you need to consider carefully. If you are running a PT PMA, you can hire foreign workers through visa sponsorship.
Market and operate your travel agency
Within the limit of your funding and budget, you should always have a marketing plan in place to grow your business. Do not put it off until you realize that you do not make any money. Do it now.
Legal Requirements for Travel Agency in Indonesia
Any entrepreneur who wants to start a travel agency in Indonesia must comply with the following laws and regulations in Indonesia:
- Tourism Law 2009
- Business Certification of Tourism Sector 2012
- Law 17 of Standard of Business Tourism Area 2014
Requirements to set up a travel agency in Indonesia
Decide Your Business Structure
There are two common business structures or legal entities to choose from in Indonesia: local company PT and foreign-owned company PT PMA.
Name Your Business
Of course, you will have to get a name for your travel agency before you can proceed to the next step: company registration.
Register Your Travel Agency
All local and foreign investors must register their legal entity with the Business Registry of Indonesia before a travel agency can be operated legally in the country.
Get the Certificate of Tourism Business
Once the travel agency is registered according to the Company Law of Indonesia, the company is required to acquire a certificate of tourism business. An auditor must be appointed for the business and the location of the business must be determined as well.
One thing to take note of is that the licensing requirements may vary by province and state in Indonesia. Do check with your local authority to make sure.
Ready to Start Your Own Travel Agency in Indonesia?
Having been awarded one of the 29 fast-moving small and medium-sized enterprises in Indonesia by SME 100 Awards 2019, Cekindo is a leading business consulting firm with experienced legal experts and specialized business professionals in Indonesia.
We strive to provide our clients with the best services. If you require assistance in setting up your travel agency in Indonesia, we are happy to help.
Get in touch with us today by filling in the form below. Or, visit our offices in Jakarta, Bali, and Semarang.