The Real Deal – Starting a Real Estate Agency in Indonesia
Get a lead on the property market by starting a real estate agency in Indonesia. Here’s a quick look from 3E Accounting on how to do it.
Starting a real estate agency in Indonesia could turn out to be one of the most profitable business ventures of the decade. Statistics show Indonesia is posited to be a commercial powerhouse. Substantial foreign investment, a stable government and a vibrant emerging economy are adding to its economic growth.
The global pandemic may have slowed things down in the property market, but real estate is still lucrative. Indonesia is the fourth most populous country in the world. Driven by the needs of a professional and rising middle-class, it’s no surprise that demand for real estate may quickly out-pace supply.
Getting Into the Real Estate Market
Starting a real estate agency in Indonesia can be quite process-driven. Real estate in this country consists of the land, buildings as well as any fixtures attached to the land. There are no fixed guidelines or certifications for realtors, but there are quite a few licensing procedures to follow.
Real estate agencies can consist of companies:
- With Non-legal Entity Status – e.g. Civil Partnership, Firms and Limited Partnership
- With Legal Entity Status – e.g. Limited Liability Company and Co-Operatives
Of these, the Limited Liability Company is the preferred type as it is easier to register and acquire licensing. It also facilitates both local and foreign investment portfolios.
Companies need to apply and register via the Online Single Submission (OSS) system’s licensing procedure. Businesses that can use the OSS system include:
- Any organization, enterprise or individual
- Any existing or new business
- Businesses with both domestic and foreign capital
OSS Institution will provide a Business Identification Number (NIB) – this also acts as a Certificate of Company Registration. Once successfully processed, the company will then be issued a license to conduct its business legally.
Operating a real estate agency also sometimes requires other types of licences. This is due to the fact that some real estate agencies also have real estate development as an added nature of business. For such multi-purpose companies, extra licensing can include:
- Spatial Utilization License – to use a particular space for spatial utilization.
- Location License – issued for foreign investment companies to make investments and utilize the land for either investment or business purposes.
- Utilization and Function Plan License – allows for condominium development.
- Environmental License – for agencies carrying out business activities which have an environmental impact.
Foreigners can only start an agency in Indonesia if partnered with a permanent resident or citizen of Indonesia. Otherwise, they can obtain a long-term lease instead.
Real Estate Indonesia
Simply starting your company and jumping in feet first will not guarantee victory. Knowing what your customers want, branding via local advertisements, selecting the proper location and building a reliable team is vital to success.
3E Accounting has a strong, tried and tested commitment to helping businesses get started. Our business solutions range from renting serviced offices to navigating complex regulations to website design and development. Whatever your needs for starting a real estate agency in Indonesia, 3E Accounting has got you covered.
Contact 3E Accounting today to find what works for your business.