This post is also available in: Indonesia (Indonesian)
Entertainment Moghuls – Set Up an Entertainment Business in Indonesia
3E Accounting shows you how to set up an entertainment business in Indonesia and tap into a powerful emerging industry.
The current e-commerce boom has had an unforeseen consequence that has changed the way the world does business. There is now a paradigm shift from consumption of goods to seeking out an experiential living. This has tipped the scales in favour of innovation, and nothing is more innovative than entertainment. If you want to set up an entertainment business in Indonesia, now would be the ideal time.
In the Business of Entertaining
As the fourth most populous country globally, Indonesia has a wealth of opportunities for the discerning entrepreneur. A rising middle class with more disposable income has made the entertainment industry an emerging business sector. People want to be entertained – either virtually or in real life. As such, the entertainment industry is pushing its way to the forefront of the business sector.
Indonesia’s entertainment sector is coupled with media and tourism. Compared to other Southeast Asian countries, this sector in Indonesia is still in its fledgeling state. However, it is estimated to spur market expansion with over fifteen billion USD by 2020. Currently, the entertainment industry is all-encompassing. Your business can be:
- Virtual or online – media-orientated (e.g. television, newspapers, etc.), online gaming, etc
- Brick-and-mortar – theme parks or malls, hotels, concerts, bookshops, etc
Whatever the nature of your business, it all begins with the first step of company incorporation. All companies seeking to operate an entertainment business in Indonesia must be registered with the Trade Register or Company Registry. The following legal structures are the most popular:
- Local Limited Liability Company (Perseroan Terbatas or PT) which is locally owned
- Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) which is foreign-owned
For the foreign-owned PT PMA, you will also need a Permanent Business License from the Capital Investment Coordinating Board (BKPM). The government has even made it easier and faster for foreign investors to do business in Indonesia. Setting up a shelf company or an Investor KITAS are speedy options but will require a substantial capital investment of a minimum of Rp 1 Billion.
The newly upgraded Online Single Submission (OSS) system now makes the registration process much more manageable. Upon successful registration, the system will issue a Business Identification Number (NIB). The NIB provides legality to your business and acts as the registration certificate and import identification number.
You will need to get tax registration done as well as getting a Letter of Domicile where applicable. In Indonesia, all foreign-owned companies must have at least one local partner.
The issue of licensing maybe a little bit more complicated as the entertainment and media industry is still a growing one. Depending on the exact nature of your business, you may need a commercial or tourism or even a theme park licence.
The Show Must Go On
When you are ready to set up an entertainment business in Indonesia, it is best to get some professional help. The potential changes in the law, as well as ambiguity in policies and licensing, may cause unintentional delays and errors. Engaging experienced business solution professionals such as 3E Accounting will facilitate in streamlining the entire process. As reliable and skilled business consultants, 3E Accounting can help you transition seamlessly to running your business.
Contact 3E Accounting today and get a head start to your business needs.