Creative Powerhouse – Starting an Arts or Music Business in Indonesia
Creative entrepreneurs take note. Here’s 3E Accounting’s take on how to set up an arts or music business in Indonesia.
Indonesia is a country that is booming with potential, and vital amongst this is its creative industry. Arts and music are categorised as a sub-sector of the creative economy. Starting an arts or music business in Indonesia is an excellent way to capitalise on a rapidly rising industry.
By embracing creativity, higher revenue and greater stability can be generated. This sector is fast becoming a key economic driver. It has an estimated contribution close to 10% of Indonesia’s Gross Domestic Product (GDP). It’s potential to create new economic chains is almost unparallel. Indonesia’s creative economy is well on its way to spearheading economic growth.
A Creative Economy
Most of the arts or music business in Indonesia are made up of self-funded, small and medium-sized enterprises. While their struggle to make it has been uphill due to lack of funding, things are changing. The Indonesian government has taken strong initiatives to ensure its creative industry stays in the spotlight.
Indonesia’s creative sector is now overseen by the non-ministerial Creative Economy Agency or Badan Kreatif Ekonomi Indonesia (BEKRAF). It was set up to support entrepreneurs with essential technology, finance and collaborations. BEKRAF aims to ensure access to financial capital while fostering business knowledge and strategic partnerships with the corporate sector.
Indonesia’s creative economy includes creative processes as well as products. Artists, performers and professionals involved in this industry enjoy both local and international status. To set up your arts or music business, first, consider the type of company that you want. In Indonesia, companies include those with:
- Non-legal Entity Status – e.g. Civil Partnership, Firms and Limited Partnership
- Legal Entity Status – e.g. locally-owned Local Limited Liability Company (Perseroan Terbatas or PT); foreign-owned Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA); and Representative Offices (Kantor Perwakilan Perusahaan Asing or KPPA)
Of these, the Limited Liability Company is the preferred type as it is easier to register and acquire the appropriate permits and licenses. Some of the process involved include company incorporation, tax registration, as well as getting a Letter of Domicile.
Registration can be done via the Online Single Submission system. OSS Institution will issue a Business Identification Number (NIB) which doubles as a Certificate of Company Registration.
The Future is Here
Indonesia has made significant inroads in getting its legislation and policies in order. However, there remains some ambiguity in the processes, which can lead to delays and confusion. The best way forward is to consult with a professional outfit. This will allow you to better focus on what’s important to establish your brand.
3E Accounting offers solutions that will resonate with your brand and act as a game-changer for your business. With the right partner, you no longer need to worry about how to set up an arts and music business in Indonesia.
Contact 3E Accounting today for a unique one-stop and all-inclusive business experience.