The Indonesian government has been encouraging new businesses in the country, especially from foreign investors. As they are easing the requirements to set up a company in Indonesia, the process of applying for licenses, such as the trading license, also known as Surat Izin Usaha Perdagangan (SIUP), is now less of a hassle.
Purpose of Surat Izin Usaha Perdagangan (SIUP) in Indonesia
Before one can officially operate the business, business licenses are required. For most companies, trading, importing, and exporting are part of the business operations. These companies are required to apply for the SIUP trading license in Indonesia, which grants them the license to operate legally. They are also permitted to do trading activities internationally.
With the SIUP license, your business shows proof of incorporation that adheres to the regulations. There are many benefits to having to having legality to the business, including:
- Receiving funding from external investors
- Applying for bank loans
- Participating in government tenders to get businesses
- Establishing trust and credibility from customers
Types of SIUP licenses in Indonesia
There are 4 types of SIUP licenses in Indonesia – each is tailored to every business type based on the total capital and assets of the company. Land and building assets are excluded from the value of the company for this trading license.
- Micro SIUP
The micro SIUP license is for companies that have a total wealth value (capital & assets) of less than IDR 50 million (~USD3,300). - Small SIUP
For companies with a value between IDR 50 million (~USD3,300) to IDR 500 million (~USD33,000), they will have to apply for the Small SIUP trading license. - Intermediate SIUP
Medium-sized enterprises are required to apply for the Intermediate SIUP trading license. These enterprises should have a net worth of IDR 500 million (~USD33,000) to IDR 10 billion (~USD660,000). - Large SIUP
The last type of trading license is the Large SIUP, reserved for companies who are operating a large-scale business and have a total value of more than IDR 10 billion (~USD660,000).
Documents required to apply for SIUP in Indonesia
The requirements to apply for the SIUP trading license vary according to the entity types. This means that a local PT company will have a different set of criteria as compared to a cooperation or branch office.
Here are the requirements for each entity type:
| Entity Type | SIUP Requirements |
|---|---|
| PT companies | Completed application form Deed of Establishment of the Company Decision Letter on Legal Entity Ratification Business Place Permit (SITU) ID card of business owner Disturbance permit Company TIN The technical permit from SKPD Bank statements Director’s family card Photograph of the business owner (3 sheets in colour) Tenancy agreement Power of Attorney Stamp Rp 6,000 x3 |
| Cooperations | Completed application form Deed of Establishment of the Company List of board members and management ID card of business owner Nuisance permit Company RAT Bank statements Balance sheets Photograph of the business owner (3 sheets in colour) Tenancy agreement Power of Attorney Stamp Rp 6,000 x3 |
| Firma/ Commanditaire Vennootschap (CV) | Completed application form Deed of Establishment Company TIN ID card of business owner Technical Permit Disturbance Permit Photograph of the business owner (3 sheets in colour) Tenancy agreement Power of Attorney Stamp Rp 6,000 x3 |
| Branch Office | Completed application form Branch Establishment Deed The ID of business owner Proof of Appointment Headquarters’ trading license Disturbance Permit Power of Attorney Tenancy Agreement Photograph of the business owner (3 sheets in colour) Stamp Rp 6,000 x3 |
How to Apply for SIUP in Indonesia?
There are 2 ways to apply for a trading license (SIUP) in Indonesia – either online or manually over the counter.
- Online SIUP Application Procedure
- Register for an account on Indonesia OSS – you can register through this link. If you have an existing account, you can login directly.
- Depending on your company type, select either “Business Licensing” or “Deed Data Recording”
- Choose the “Business Application” option followed by “Select Deed”
- Confirm your KWSP and NPWP information
- Ensure all information and documents are accurate
- Submit your application online
- Once approved, you can collect your SIUP license
- Over-the-counter SIUP Application Procedure
- Prepare all the documents accurately
- Head down to the trade service office
- Fill in the SIUP application form
- Power of attorney is mandatory if management is not the PIC of the business
- Submit the documents over the counter
- Collect your SIUP license once approved
