Trading companies are specialized companies that cover all export and import operations and procedures. A trading company buys products in one country and sells them in different countries according to its own distribution network.
Indonesia is full of natural resources such as silver, coal, fertile soils, natural gas, petroleum, gold, bauxite, tin, copper, timber, and nickel. This fact, as well as the constant and stable growth of the Indonesian economy driven by the efforts of the country’s government to reduce the barriers to the conducting of business activities in the country, attracts many investors from around the world to start a trading company in Indonesia.
However, starting a trading company in Indonesia is not as easy as one might think. Those who have an interest in doing so need to obtain a trading license (SUIP) to perform trade activities in Indonesia.
Types of Indonesia Trading License (SUIP)
The first step in starting up a trading company in Indonesia is that of receiving a trading license (SUIP). There are four types of trading companies available in Indonesia. Each requires a different SUIP. They are as follows:
A Micro SUIP or SUIP Micro is a license for micro-sized businesses with a net worth of less than 50 million rupiah (US$3,560), excluding land and buildings. It must also be a a sole proprietorship or partnership and have its business activities managed and maintained by its owners or family members or close relatives.
A Small SUIP or SUIP Kecil is a license for small businesses with a net worth of more than 50 million rupiah (US$3,560) but not more than 500 million rupiah (US$35,606), excluding land and buildings.
A Medium SUIP or SUIP Menengah is a license for medium-sized businesses with a net worth of more than 500 million rupiah (US$35,606) but not more than 10 billion rupiah (US$712,125), excluding buildings and land.
A Large SUIP or SUIP Besar is a license for large sized businesses with a net worth of more than 10 billion rupiah (US$712,125), excluding land and buildings.