Delivering Success – Starting a Courier Services Company in Indonesia
3E Accounting explains how starting a courier services company in Indonesia can deliver express benefits.
The global pandemic has changed the way the world does business. Online shopping is now the norm, and this has sparked a tremendous rise in the need for reliable courier services. E-commerce is booming, and starting a courier services company in Indonesia could be your ticket to success.
In Indonesia, the Courier, Express and Parcel market (CEP) is expected to hit 8% of the Compound Annual Growth Rate (CAGR) by 2025. Indonesia’s e-commerce gross market value in 2019 stood at twenty billion USD. It is no wonder that Indonesia is considered Southeast Asia’s e-commerce centre.
An Express Ride-on Indonesia’s CEP Market
Indonesia’s CEP market is still relatively new and has enormous potential, with annual revenue growth of almost 40%. Once considered a fragmented industry, most courier companies consist of a small to medium-sized business. However, digitalization and a global shift to online shopping are spearheading borderless e-commerce and driving the CEP market in Indonesia.
Courier companies handle logistics and delivery of goods via air, land or sea. In Indonesia, the preferred option is usually air due to the country’s archipelago and geographical outlook.
If you are starting a courier services company, it would be prudent to do some research on the following areas:
- Logistics & Integrated ICT Systems
- Shipping Costs
- Warehouse & Inventory
- Business Insurance
- Supply Chain Management
You can then decide what your company will be handling as this will affect capital investment. Next, consider the type of company to incorporate. Due to the nature of the business, having a legal entity status company is preferable. These include:
- 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
Some of the processes involved include company incorporation, tax registration, as well as getting a Letter of Domicile where applicable. In Indonesia, all foreign-owned companies must have a local partner who owns a majority of shares.
Company incorporation and licensing is via the Online Single Submission (OSS) system, which will issue a Business Identification Number (NIB). The NIB acts as the registration certificate, import identification number and proof of the legitimacy and government sanction of your business.
Most importantly, do get your licenses in order. A courier company in Indonesia will need the following permits:
- Principal License – covers patenting rights
- Inter-city License – grants permission to operate between different cities
- Branch License – allows branch offices to be opened all over Indonesia
- Agent License – enables the enlisting agents (either individual or group) to conduct business on behalf of the company
- National License – grants permission to operate anywhere in Indonesia
- International License – gives permission to operate overseas
Good Business Practices
Starting a courier services company in Indonesia can be an excellent business venture. Industry specialists 3E Accounting is on hand to make the experience as seamless as possible. You’ll be off to an express start with 3E Accounting’s bespoke business solutions.