An Online Shop Can Reach Every Corner of the World, No Matter the Base

How to Set Up an Online E-commerce Business in Indonesia

If you are not on the online shopping fever yet, then I’d suggest you get going. There are plenty of reasons why online shopping is booming currently. It is convenient. All you have to do is go to the merchandise or brand website, browse and buy via online, all from the comfort of wherever you are. If brand websites are not within your budget, then there’s online shopping platform. It is pretty much an online mall.

Furthermore, there are no operating hours. Shopping online is so convenient that people do it at any time of the day. With the Indonesian online and mobile e-commerce business currently expanding and ever-evolving, there is always something new to offer. Thus, go ahead and set up an online e-commerce business in Indonesia and see it grow.


Market Trend

Being highly populated gives Indonesia an advantage in business terms. There are many areas where the central business has yet to reach; thus, an online e-commerce business should do the trick. It is typical for the urbanites of Indonesia to pick up new trends, but trends spread like wildfires if you market it right. The most viable method available now is via social media and e-commerce platforms as well as online shops. Ninety per cent of Indonesians have access to the Internet and a smartphone. It is also a worldwide phenomenon; the current situation is that people are more glued to their mobile phones than ever. There is no other time to set up an online e-commerce business in Indonesia than now.


Manufacturing Base

People always thought many things are made in China and sold to every corner of the world. This misconception should change by now as Indonesia makes plenty of things too. It is recently the tenth-largest manufacturing nation in the world. Indonesia manufactures goods such as pharmaceuticals, automotive parts, electrical and electronics, furniture, plastics, textiles, garment and footwear, FMCGs, and heritage products. With a broad base of manufactured products right at your disposal, setting up an online e-commerce business in Indonesia is a no-brainer.


Own an Online E-commerce Business

If you are guessing that to set up an online e-commerce business in Indonesia is easy, you are correct. Even if you are a foreigner, you can still own an online shop under Indonesian laws. For starters, you would need to incorporate a company. Your company must comply with all the provisions of Company Law such as a deposit of at least Rp 2.5 million in a local bank, the business structure is a Company, and obtain specific licenses to operate a business in Indonesia. As for the e-commerce part, a foreign entrepreneur can get total ownership if the investment is at least Rp 100 billion. Otherwise, if it is less than that, foreign ownership is only 49%. If you were to set up an online e-commerce business in Indonesia, your website must be registered in Indonesia. You should also acquire an Electronic System Provider (PSE) license. To obtain such, you must register your website with the Ministry of Communication and Information which takes two weeks to produce the permit.

How to Set Up an Online E-commerce Business in Indonesia