Trading Business in Bali

As the world’s fourth most populous nation with an emerging middle class, Indonesia is an attractive market place to trade in.

A trading business allows you to import, export, and wholesale goods to and from Indonesia.  A Foreign Investment Trading business is considered as a large-scale company, therefore only wholesale trading is permitted, not retail.

Goods such as beautiful ethnic linen and textiles, furniture, unique handicrafts and jewelry from around Indonesia, are all popular goods to trade.

To promote and protect traditional industries, certain products are limited  such as: ready-to-wear clothing, food and beverage, cosmetics, home appliances and some electronic devices.

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What are the requirements for setting up a trading business?

  • The good news is that a Trading Business is open for 100% foreign investment based on the Indonesian Negative List.
  • This is one of the simpler businesses to set up in Bali. In order to start you’ll need an office space with a building permit (IMB).
  • A minimum of 3 years is recommended.
  • You can do business all over Indonesia without opening a branch office which will involve more paper work.

What is the setup time frame and cost involved?
A trading business can start trading as quickly as 6-8 weeks from incorporation.

Cost starts from IDR 80.000.000,- for the Denpasar area (excluding building permit).

Licenses involved
A trading business can have up to 11 licenses including import licenses (API-P, API-U) and customs identity number (NIK).

What are the import taxes for goods?
Depending on the intended import goods, there will be varying amounts of import tax. An easy way to determine the taxable amount would be to refer to the Harmonization number (HS code) from the Customs Department.

What type of corporate structure would suit your trading business?
A trading business can be owned by a PT. Local or a PMA Company with 100% foreign ownership; except for a distributor that may have a maximum of 67% foreign ownership.

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