Panduan Memulai Bisnis Penerbitan Buku di Indonesia

A Guide to Starting a Publishing Business in Indonesia

  • InCorp Editorial Team
  • 24 August 2020
  • 4 reading time

With more than 260 million population and a high percentage of young people, starting a publishing company in Indonesia can be a profitable business idea. The majority of this young population read a lot and most of them are students who need published materials for their learning and studies. Statistics have shown that the total revenue of the publishing businesses in Indonesia is recorded at US$466 million every year.

In addition to the conventional printed publishing business, Indonesia has seen significant demand for digital materials over the internet. This has prompted the rise of e-publishing business in the country as well.

According to Statista.com, the e-publishing segment in Indonesia is forecast to hit US$220 million in 2020 with an annual growth rate of 6.5% between 2020 and 2025. This translates to US$302 million project market volume by 2025.

Both conventional publishing and e-publishing industries are what foreign investors are eyeing on as starting a publishing company has become more affordable and more lucrative in Indonesia.

Main Authorities in the Publishing Business in Indonesia

When speaking of main authorities overseeing publishing business in Indonesia, the Indonesian Investment Coordinating Board (BKPM) is definitely on the list. This is because BKPM oversees all business activities taking place in Indonesia including publishing companies.

Then, two more authorities oversee publishing businesses as well: an international body known as the International Publishers Association and the local body known as the National Press Council. The International Publishers Association is the biggest federation of publishing associations in the world and the Indonesian Publishers Association is one of its members.

The International Publishers Association is responsible for protecting the publishing freedom of its member countries, and the National Press Council is in charge of the publishing industry’s regulation in Indonesia. Furthermore, the National Press Council has a similar role just like the International Publishers Association – to protect the freedom of the press in the country.

Requirements for Establishing a Publishing Company in Indonesia

Anyone in Indonesia, including locals, foreigners, local businesses, and foreign companies are permitted to set up a publishing company in Indonesia. As for foreigners, they will first have to get approval from the BKPM before they can establish one.

After obtaining permission from BKPM, foreign individuals or businesses will have to apply for a business license and a registration certificate.

How to Register a Publishing Company in Indonesia

The following is a summary of steps on how you can register your publishing company in Indonesia as a foreign individual or organisation:

  1. Obtain permission from BKPM.
  2. Apply for a business license.
  3. Acquire a registration certificate.
  4. Receive all required licenses and certificates as official permission for the establishment.
  5. Register with the National Press Council.
  6. Deposit compulsory share capital amount into a corporate bank account with the business owner’s name.
  7. Obtain company incorporation form and fill it out.
  8. Submit company incorporation form along with required documents and licenses.
  9. Decide on the type of published materials. They can be newspapers, magazines, journals, books, manuals, and others.
  10. If you own a digital publishing company, your published materials can be electronic, online media content, and CDs.
  11. Once your company is formed and starts operating, do remember to review and keep up with the legal requirements to ensure compliance.

How Cekindo can Assist

Cekindo works with aspiring entrepreneurs from all over the world and seeing businesses succeed pushes us to be at the forefront of our industry.

Our ability to combine industry expertise with business acumen and a wide network in Indonesia enables us to offer you a truly value-added service.

Partner with Cekindo to discover the solutions you require to plan, start and find funding for your publishing company in Indonesia. Fill in the form below.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.