Recently, according to foreign media reports, the Indonesian government is working on new regulatory measures to address the pressure on micro, small and medium-sized enterprises (UMKM) from rising overhead and commissions on e-commerce platforms.
Indonesia's Ministry of Micro, Small and Medium Enterprises (MSME) said that the regulations are aimed at protecting UMKM sellers from the high administrative fees of e-commerce platforms such as Shopee and Tokopedia, providing them with a fairer space to thrive in the digital economy environment while avoiding UMKM being disadvantaged in the platform's operations.
The Minister of Micro, Small and Medium Enterprises (MSME), Maman Abdurrahman, said at the working session of the Seventh Committee of the National Assembly in Jakarta on January 20, 2026, that there is no official regulation on the level of the management fee for UMKM sellers on digital platforms and that the fee is still entirely left to the market mechanism to determine.
This means that platforms have more autonomy in terms of management fees and commissions, while UMKMs have relatively limited negotiating power.Maman further explained that the Indonesian government is conducting a study to formulate a ministerial regulation (Permen), based on the Law on Micro, Small and Medium-sized Enterprises (MSMEs) No. 20 of 2008, and the Government Regulation No. 7 of 2021 (on UMKM Protection). The legal basis.
UMKM cannot rely entirely on market mechanisms to function, and it is necessary for the government to step in and provide protection for its business activities in the digital space.
Currently, the regulation is still in the research and harmonization stage. The Government of Indonesia is in discussion with the Ministry of Justice, the Ministry of Trade, and other relevant ministries to ensure that the new regulation is consistent with the existing legal system.
In terms of specific policy directions, the Indonesian government's support measures for UMKM will be adjusted according to the affordability of different companies, including commodity pricing, marketing expenses, and other operating costs.
The first is to set minimum import prices for 11 categories of goods that can be produced locally and are widely used by the UMKM in order to protect local industries.
The second is product standardization requirements, including the requirement for some goods to have a commercial identification number (NIB) and the Indonesian national standard (SNI), as well as regulating the algorithms of e-commerce platforms, which are required to prioritize the display of local products in searches, recommendations, and product rankings.
The third is the regulation of platform fees, with plans to provide fee reductions for UMKM and domestically produced goods, and to require platforms to notify the government of any increase in management fees before doing so.
It is said that future regulations on e-commerce platform fees in Indonesia will include both incentives and regulatory mechanisms to balance the platform's commercial interests with the sustainability needs of small and medium-sized sellers by giving preferences to UMKM and local products.
Overall, the Indonesian government hopes that through clearer rules, e-commerce platforms will be guided to avoid excessive squeezing of UMKM by high fees while developing rapidly, thus maintaining the long-term healthy development of the digital economy ecosystem.
This proposed measure in Indonesia mirrors that of Malaysia, which regulates the management fees of major platforms.
Therefore, if you register an Indonesian company into different cross-border e-commerce platforms, you may be able to realize the localized operation of Indonesian companies. If you need to register an Indonesian company or go to Indonesia to start a cross-border business, you can always consult (WeChat same number: 13045886252)▼▼▼
Indonesia is the fourth most populous country in the world, with a huge market of over 270 million people and a youthful consumer base, there is plenty of room for growth in both consumer goods, electronics and internet services.
2) Government support for foreign investment
His Government was committed to attracting foreign investment, particularly in the areas of manufacturing, information technology, energy and infrastructure.
3) Geographical Location Advantage
Located in Southeast Asia, Indonesia is easily accessible and the international shipping lanes connecting Asia and Australia are important trade routes around the world.
4) Low-cost labor market
Indonesia has low-cost and abundant labor resources, especially in the field of manufacturing and service industry, which can provide cost-effective operation support and reduce production and operation costs for Indonesian enterprises. If you are interested in company registration in Indonesia, please contact me (WeChat: 13045886252) ▼▼▼
03 印尼公司注册条件
1) Selection of Indonesian company type
PT PMA (Foreign Investment Company): suitable for foreign companies and the most common form of foreign company, allowing foreign investors to hold 100% equity.
PT (Limited Liability Company): for local investors, with limited shareholder liability, but not fully controlled by foreign investors.
2) Indonesia Company Name
Planning an Indonesian company name is the first step in Indonesian company registration. Indonesian companies need to provide several alternative names to ensure that the name is not duplicated with other companies.
3) Financial requirements
When registering a PT PMA company, the Indonesian government requires a minimum investment of Rp 10 billion (approximately $71,000 USD). Of this, at least 251 TP3T needs to be in place at the time of registration, i.e. at least Rp 250 million.
4) Preparation of necessary documents
Indonesian businesses are required to submit a series of documents, including proof of identity of shareholders and directors, articles of incorporation, and proof of source of funds. Ensure that all documents comply with Indonesian law.
5) Tax registration
After the Indonesian company registration is completed, the Indonesian business needs to register with the Indonesian Tax Agency to obtain a tax number (NPWP) and register for Value Added Tax (VAT). Depending on the nature of the Indonesian company's business, other relevant licenses may also be required.
6) Registration of local business licenses
Depending on the type of business, Indonesian businesses may also need to obtain a local business license. These licenses are issued by each local government to ensure that the company operates legally in the local area. If you need to register an Indonesian company or go to Indonesia to start a cross-border business, feel free to inquire (WeChat same number: 13045886252)▼▼▼
Definition: Companies that allow foreign investors to hold shares, subject to Indonesia's Investment Law and Negative List (DNI) requirements.
Features:The percentage of foreign ownership depends on the industry (some industries can 100% holdings, some need joint ventures).
Minimum Registered Capital: Usually Rp 10 billion (approximately US$650,000), which can be reduced to Rp 2.5 billion (approximately US$160,000) for certain industries.
Applicable scenarios: manufacturing, mining, technology, hotels and other areas open to foreign investment.
2) Local Company (PT Lokal - Perseroan Terbatas)
Definition: A company that is wholly owned by an Indonesian citizen or a local legal entity.
Features:Shareholders must be at least 51% Indonesian nationals (natural persons or corporations).
Minimum registered capital: Rp 50 million (approximately US$3,200).
Applicable Scenarios:Retail, catering, small and medium-sized trade and other industries where foreign investment is restricted.
3) Representative Office (KPPA - Kantor Perwakilan Perusahaan Asing)
Definition: Non-profit branch of a foreign company in Indonesia, limited to market research or liaison activities.
Features:No direct sales or contracts may be signed.
Valid for 1 year (renewable), requires parent company 100% shareholding.
Applicable Scenarios:Initial market exploration phase of TNCs.
4) Cooperatives (Koperasi)
Definition: a membership-based enterprise based on the principle of mutual aid, applicable to small and medium-sized community economies.
Characteristics: At least 20 Indonesian natural person members.
Profits are distributed according to members' contributions and enjoy tax benefits.
Applicable scenarios: Agricultural cooperatives, handicraft syndicates, etc.
(ii) Other specialized entities
1) Joint Venture (JV)
Definition: A company set up by a foreign investor in cooperation with a local enterprise, with the shareholding ratio negotiated in accordance with industry policy.
Applicable scenarios: mineral development (local shareholding required), retail (foreign shareholding restrictions), etc.
Definition: consists of at least 1 shareholder (partner) with unlimited liability and 1 shareholder with limited liability.
Features: Unlimited partners manage the company and bear the risk of debt. Simple to register, suitable for small family businesses.
3) Individual Traders (UD - Usaha Dagang)
Definition: sole proprietorship by a natural person with unlimited liability.
Applicable Scenario: Small and micro retail, service industry self-employed. If you plan to register a U.S. company/Singapore company/Japanese company/Thailand company/Malaysia company/Canada company/Mexico company/Brazil company/Britain company/France company/New Zealand company/Japanese company/Singapore company/Vietnamese company/Indonesia company/Dubai company, etc., or plan to register a Hong Kong company/Shenzhen company/Hainan company, etc., the company annual audit/accounts and taxes/MPF payment/change Guangzhou company / Shanghai company / Hangzhou company / Beijing company / Hainan company and other domestic companies registered business services, the company's annual audit audit / bookkeeping tax / payment of MPF / change of information / bank account opening / ODI record / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you can add my WeChat (phone with V: 13045886252) at any time to consult ↓↓ ↓
05 印尼公司注册资料
(i) Foreign company (PT PMA) registration materials
(1) Information on shareholders and directors
Natural person shareholders:
Photocopy of passport (to be certified by Indonesian embassy or consulate abroad). Proof of address for the last 3 months (e.g. utility bill, bank statement, English or Indonesian translation + notarization required).
Company shareholders:
Certificate of Incorporation of the parent company, Articles of Association, Board of Directors' Resolution (agreeing to invest in the Indonesian company). Passport of the director of the parent company and proof of identity of the authorized signatory (notarization + double authentication required).
(2) Basic company information documents
Company name: Provide three alternative names (English or Bahasa Indonesia) with the suffix "PT" or "PT PMA".
Articles of Incorporation (Akta Pendirian): need to be drafted by an Indonesian Notary Public (Notaris) to specify the registered capital, shareholder structure, business scope, etc.
Proof of registered address: Lease contract or proof of office ownership (in Indonesian). If an agent's address is used, a guarantee letter from the agent is required.
3) Proof of capital and operations
Investment plan: describes the source of funding, business model and projected number of employees.
Proof of registered capital: Certificate of deposit of paid-up capital issued by the bank (at least 25% registered capital).
4) Industry-specific documents (if applicable)
Licenses (izin usaha): e.g., IUP license for mining, Ministry of Communications filing (PSE) for e-commerce.
Environmental Assessment (AMDAL): Manufacturing and chemical industries are required to submit environmental impact reports.
(ii) Local Company (PT Lokal) Registration Materials
Shareholder Status: At least 1 Indonesian shareholder (copy of ID KTP).
Articles of Incorporation: Drafted by Indonesian Notary Public and signed by shareholders.
Proof of Registered Capital: Minimum Rp 50 million (no need for paid-up capital, but a declaration of the source of funds is required).
Scope of business: no foreign investment restricted industries (such as alcohol sales, pharmaceutical distribution).
(iii) General registration process and submission of materials
1) Name check
Submit a name application through the online system of the Indonesian Ministry of Law and Human Rights (Kemenkumham) (1-3 working days for approval).
2) Notarized Articles of Incorporation
Shareholders are required to sign the documents in person at an Indonesian notary public or by proxy through a Power of Attorney (POA).
3) Online application for NIB (business license)
Submit materials through OSS system to obtain NIB (1-5 business days).
4) Application for industry licenses
Some industries require additional sectoral approvals (e.g., food production requires a BPOM license).
5) Tax registration
Apply for a tax number (NPWP) and a VAT number (PKP) from the Inland Revenue Department.
(iv) Material compliance requirements
1) Translation and notarization:All foreign language documents need to be translated into Indonesian and certified by an Indonesian notary or embassy or consulate.
2) Certification process:
Chinese documents: Notarized by China Notary Public Office → Certified by China Ministry of Foreign Affairs → Certified by Indonesian Embassy in China.
Other countries: similar to the "three-tier certification" process. If you need to register an Indonesian company, you can drop me (WeChat: 13045886252)▼▼▼▼
06 Why choose Enterprise Caiying Group?
🏆 Why choose Enterprise Finance? --Professional strength, global trust
Enterprise Caiying Group, since its establishment in 2015, has always been adhering to the mission of "empowering every entrepreneurial dream", focusing on providing one-stop globalized industry, commerce, finance and tax and business services for enterprises.
Our bottom line, from the deep precipitation and authoritative certification:
✅ Service Scale Witnesses Reputation: Accumulated services for more than 300,000+ enterprises, long-term cooperation with more than 50,000+ customers.
✅ Global Network Local Support: Branches are set up in Beijing, Guangzhou, Shenzhen, Hong Kong, Southeast Asia, and the United States, with services covering Asia, Europe, and the Americas.
✅ Official certification qualification escort: with 3 Hong Kong government certified licensed secretarial firms, a U.S. branch and a self-employed Hong Kong accounting firm, and at the same time is the vice president of the Shenzhen Agency Bookkeeping Association, etc., to ensure that the service is fully compliant and reliable.
The four core advantages of Enterprise Caiying's overseas company registration service:
🔹 1. A team of experts to guide you throughout the process
Our team of nearly 400 professionals consists of senior lawyers, accountants, tax accountants and cross-border business consultants. They are well versed in international regulations, handle thousands of high-end cases annually, and can provide optimal customized solutions from structural design to on-the-ground implementation.
🔹 2. digitally empowered, smart and efficient
We have spent 20 million RMB to research and develop our own digital system "Echobo", which realizes process standardization and progress visualization. The integration of AI intelligent analysis can provide quick insight into demand and assist in generating solutions, making complex affairs clear, transparent and efficient.
🔹 3. Eco-links, extra value
We connect over 500,000+ entrepreneurs with domestic and international associations. By regularly organizing cross-border salons, tax law seminars and other activities, we not only solve registration problems, but are also committed to linking resources and creating business opportunities for you.
🔹 4. Full-cycle accompaniment for worry-free sailing
Our services go beyond "successful registration". We provide a full life cycle of services from early consultation, mid-term implementation, to late financial and tax declaration, annual audit and maintenance, and compliance consulting, to become your long-term and stable partner for overseas expansion.
statement denying or limiting responsibility
Image source: some of the image material in this article from the network, such as copyright issues, please contact us to replace the deletion of processing.
Information reference: The content of this article is synthesized from the internal materials of Enterprise Caiying and relevant public network information.
Content Editor: This article was edited and designed by the Operations Department of the Enterprise Caiying Group.
Warm reminder: The relevant policies, conditions, time limits, fees and other information described in this article may be subject to dynamic adjustments, please refer to the latest official announcements or the actual application of the specific circumstances prevail.
Tags:
Indonesia Company Registration
Indonesia Company Registration
Indonesia Company Registration Requirements
Indonesia Company Registration Process
Indonesian company
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