KSP LEGAL UPDATES
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KSP LEGAL UPDATES
E-commerce and Portal Web Business in the 2017 Indonesian Business Field Classifications
The emergence of various new business sectors leads to the enactment of new Indonesian Business Field Classifications (Klasifikasi Baku Lapangan Usaha Indonesia - “KBLI”) by the Central Bureau of Statistics (Badan Pusat Statistik - BPS) under the Head of BPS Regulation Number 19 of 2017 (“KBLI 2017”).
The KBLI 2017 was created to cover the fastest-growing business industries which have not been classified in the previous KBLI. In addition, the KBLI 2017 plays important role for private person or investor to clearly determine its business field classification as it will be required in some company’s licenses such as Investment Licenses issued by the Indonesian Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM), Business Registration Certificate (Tanda Daftar Perseroan - TDP), Trading Business License (Surat Izin Usaha Perdagangan - SIUP) and other licenses.
E-commerce and Portal Web are two new business sectors included in the KBLI 2017. Many business persons or even foreign investors convincingly enthusiasm to enter into this market as the number of internet users in Indonesia have been rapidly growing at least for the last three years.
As stipulated in the KBLI 2017, E-commerce business is categorized under KBLI number 47919 i.e. ‘Retail Business Via Media For Any Other Goods’, including but not limited to via catalogue, model, telephone, television, internet, mass media and its kind.
Meanwhile, the KBLI 2017 provides two classification of Portal Web business as follow:
1. KBLI number 63121 i.e. ‘Portal Web and/or Digital Platform without Commercial Purposes’ such as online database search engine, media site that is regularly updated and so forth.
2. KBLI number 63122 i.e. ‘Portal Web and/or Digital Platform with Commercial Purposes’ such as online marketplace, digital advertising, financial technology, online payment platform, on-demand online services and so on.
Interestingly, this KBLI 2017 was enacted after the promulgation of the 2016 Investment Negative List (Daftar Negatif Investasi – "DNI"), thus some businesses have not been classified properly.
In this case, E commerce business in KBLI 47919 and Portal Web business in KBLI 63122 are classified under the same KBLI number 00000 in the 2016 DNI i.e. 'Organizer of Electronic Trading Transactions (market place on platform basis, daily deals, price grabber and online classified ad) with the investment value of less than IDR l00.000.000.000 (one hundred billion Indonesian Rupiah)'. This line of business is open for maximum of 49% foreign share ownership.
The KBLI 2017 was created to cover the fastest-growing business industries which have not been classified in the previous KBLI. In addition, the KBLI 2017 plays important role for private person or investor to clearly determine its business field classification as it will be required in some company’s licenses such as Investment Licenses issued by the Indonesian Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM), Business Registration Certificate (Tanda Daftar Perseroan - TDP), Trading Business License (Surat Izin Usaha Perdagangan - SIUP) and other licenses.
E-commerce and Portal Web are two new business sectors included in the KBLI 2017. Many business persons or even foreign investors convincingly enthusiasm to enter into this market as the number of internet users in Indonesia have been rapidly growing at least for the last three years.
As stipulated in the KBLI 2017, E-commerce business is categorized under KBLI number 47919 i.e. ‘Retail Business Via Media For Any Other Goods’, including but not limited to via catalogue, model, telephone, television, internet, mass media and its kind.
Meanwhile, the KBLI 2017 provides two classification of Portal Web business as follow:
1. KBLI number 63121 i.e. ‘Portal Web and/or Digital Platform without Commercial Purposes’ such as online database search engine, media site that is regularly updated and so forth.
2. KBLI number 63122 i.e. ‘Portal Web and/or Digital Platform with Commercial Purposes’ such as online marketplace, digital advertising, financial technology, online payment platform, on-demand online services and so on.
Interestingly, this KBLI 2017 was enacted after the promulgation of the 2016 Investment Negative List (Daftar Negatif Investasi – "DNI"), thus some businesses have not been classified properly.
In this case, E commerce business in KBLI 47919 and Portal Web business in KBLI 63122 are classified under the same KBLI number 00000 in the 2016 DNI i.e. 'Organizer of Electronic Trading Transactions (market place on platform basis, daily deals, price grabber and online classified ad) with the investment value of less than IDR l00.000.000.000 (one hundred billion Indonesian Rupiah)'. This line of business is open for maximum of 49% foreign share ownership.
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