03 Jan 2018
Things You Need To Know Before Establishing E-Commerce Company In Indonesia
We couldn’t deny that recently we are taking part of technological revolution which means the advancement in technology is inevitable. Obviously, the internet-based technology in business industries is the biggest result of how technology has influenced our financial business platform such as e-commerce, financial-technology, etc.
In these past 3 years in Indonesia, e-commerce business models have significantly yet ubiquitously developed not only in the retail or marketplace sectors but also transportation services. As we can say, e-commerce takes its place as the current big thing which has a major impact of the potential business for start-ups and the growth of such business in Indonesia.
For the foreign investment, there are some mostly asked questions and some points you need to consider before you decide to set up the e-commerce company in Indonesia. The government of Indonesia has issued some specific ‘e-commerce regulations’ but still remain obscurity. Hence, the government is currently on the process of drafting and finalizing the complete comprehensive regulations.
So, let me give you some basic information about the investment rules of e-commerce:
Foreign Ownership and Minimum Capital
According to the Presidential Regulation No. 44 years 2016 concerning the Negative Investment List and our research source Indonesia Investment Coordinating Boar, stipulate that the e-commerce business sector is open to foreign investment. However, there is different percentage of foreign ownership between the B2C and C2C e-commerce business model.
- For the B2C (Business to Customer) model, merchant with their own marketplace such as (Zalora, Berry Benka, MatahariMall, etc.), the percentage of foreign ownership could be 100% for companies.
- For the C2C (Customer to Customer) model, pure marketplace, such as (Tokopedia, Shopee, Uber, Go-Jek, Airbnb, etc.), the percentage of foreign ownership could be 100% for companies valued more than 100 billion IDR and 49% ownership for less.
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