Indonesia’s digital business sector is thriving, driven by rapid technological adoption and diverse business models. Entrepreneurs must adapt to this evolving landscape, leveraging online platforms to grow their businesses. From marketing and sales to product delivery and customer communication, digital businesses rely on online channels to succeed.
If you’re venturing into Indonesia’s digital economy, understanding the types of digital businesses and licensing requirements is crucial. Here’s a guide to help you navigate this particular space.
What is Digital Business?
A digital business operates online, using technology to connect with customers, manage transactions, and deliver value. Popular examples include:
- e-commerce and marketplaces like Tokopedia and Shopee.
- digital financial services like GoPay and digital banks.
- paid content providers like Netflix or Spotify streaming services.
- communication platforms like WhatsApp or Facebook.
- information services like Google or content platforms like YouTube.
- providers that offer subscription-based software solutions (software as a service/Saas).
With so many options, digital businesses have become indispensable for modern consumers and businesses alike.
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Why Licensing is Important for Digital Business
Compliance with Indonesia’s regulatory framework ensures the smooth operation of digital businesses and protects them from legal risks. The Electronic System Operator (PSE) license governs these businesses, applying to public and private operators.
The licensing process for e-commerce businesses falls under the Trade Business License for Electronic System Operators (SIUPMSE). This license is mandatory for domestic businesses engaging in electronic trading.
Also read: Panduan Legalitas untuk Mendirikan Startup di Indonesia
Key Regulations for Digital Businesses in Indonesia
The licensing framework is rooted in several government regulations, including:
- Government Regulation PP No. 71/2019, which regulates electronic systems and transactions.
- Government Regulation PP No. 80/2019, which focuses on trade via electronic systems.
- Minister of Trade Regulation Permendag No. 31/2023, which governs licensing, advertising, and business operations for digital traders.
Social commerce platforms such as Facebook and Instagram must now secure a license separate from e-commerce permits, reflecting the latest regulatory updates.
Steps to Obtain a SIUPMSE License
Applying for a SIUPMSE license is straightforward with the Online Single Submission (OSS) system. Here’s how you can get started:
- Prepare Your Business Entity
Ensure your business is registered as an Indonesian legal entity. For medium and large enterprises, your business must comply with KBLI code 63122 (“commercial websites and/or digital platforms”).
- Register on the OSS Platform:
- Visit the OSS website and log in using your user ID.
- Enter the required data, such as your National Identity Number (NIK) for individuals or incorporation number for businesses.
- Complete the captcha and submit your registration.
- Verify and Activate
After registration, you’ll receive an email with your username and password. Use these to log into the OSS system.
- Apply for Your License
Follow the detailed instructions on the OSS platform to obtain your Business Identification Number (NIB) and SIUPMSE license.
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Benefits of Compliance
By securing the necessary licenses, digital businesses in Indonesia can:
- build customer trust by demonstrating regulatory compliance.
- avoid potential legal and financial risks.
- seamlessly expand operations within Indonesia’s dynamic digital economy.
Also read: Pelaku Industri Rumah Tangga Wajib Tahu, Begini Cara Memperoleh SPP-IRT
Need Help? Consult the Experts
Indonesia’s digital business ecosystem offers immense opportunities, but understanding the legal requirements is critical to success. Whether you’re launching an e-commerce platform, a SaaS service, or a social commerce business, securing the right licenses is your first step toward sustainable growth.
SIPR Consultant specializes in helping businesses comply with local regulations, from licensing to legal support. Our team ensures your business is fully equipped to thrive in the digital era.
Contact SIPR Consultant today to kickstart your journey in the digital economy with confidence!
Also read: Inilah Cara Mengurus Izin Usaha Konstruksi
Regulations:
References:
- aptika.kominfo.go.id, (Diakses pada 18 Oktober 2024 pukul 15.21 WIB).
- mofi.id, (Diakses pada 18 Oktober 2024 pukul 15.43 WIB).
- konsultanperizinan.co.id, (Diakses pada 18 Oktober 2024 pukul 16.01 WIB).
- kontrakhukum.com, (Diakses pada 18 Oktober 2024 pukul 16.11 WIB).