• Copy of existing legal entities documentations
• Technical permits, i.e. product licenses from related ministry
1. BPOM: TMHS and Food products
2. MOH: Medical devices etc
• Provides product samples [for verification purposes against the existing provided certification / product licenses]
• Field Inspection [continued]
Inspection will also includes physical check / observation on the office building, including but not limited to presentation room, warehouse, storage and other related supporting buildings.
• Inspection Report
Ministry of Trade recorded all finding during the inspection and will provide report and/or recommendation to BKPM to grant a SIUPL (or not)
• BKPM Issues SIUPL

Depending on documentation completeness, scheduling, etc, timeline to set up business is different from one application and another.

Before applying for an MLM licence for sales and marketing activities, you need to register a company in Indonesia.

If you are a foreigner, you need to keep in mind that maximum foreign ownership of 95% is allowed for MLM entity, as described in the Negative Investment List (NIL).

Learn how to comply with limited foreign ownership of Indonesian companies, sign a Special Purpose Agreement.

Once you have incorporated your company, you can move on with applying for so-called SIUPL (Surat Izin Usaha Penjualan Langsung). According to the Indonesia Investment Coordinating Board (BKPM), multi-level marketing or direct selling companies in Indonesia are required to obtain SIUPL license for operation and business activities.

There are two types of SIUPL licence – provisional SIUPL and permanent SIUPL.

In order to qualify for either of the SIUPL licences, you need to follow the proper steps and get ready the right documents such as:
• Business partner compensation plan
• Code of Ethics and other company’s regulation.

The validity of provisional SIUPL is one year. Once a company’s provisional SIUPL is approved, they can apply for a permanent SIUPL, which is granted for 5 years.

The process and requirements of applying both types of SIUPL are almost the same. The only difference is that while applying for a permanent SIUPL, you will have to present your company’s financial statement and provisional SIUPL.

Businesses with SIUPL are prohibited from performing the following activities:

1. Offer, promote, and, advertise goods and/or service different to the actual condition.
2. Offer goods and/or services in manners that may cause physical and psychological interference against the consumer
3. Offer goods and/or service by mentioning the standard clause in the agreement that is against the provisions of the legislation in regards to the protection of consumers.
4. Sell goods and/or services without the registration mark
5. As a business partner, gain benefits through registration or membership dues unfairly
6. Receive membership registration as business partners by using the same name more than once
7. Persuade a business partner to buy goods and/or service for own use or sale in huge quantities-exceeding his/her ability to sell
8. Sell or market goods and/or services listed in outside the MLM system specified by SIUPL.
9. Trade business for public funding
10. Establish prohibited marketing network
11. Trade business out of SIUPL’s scope
12. Sell and/or market goods and/or services that are outside of SIUPL
13. Sell and/or market goods whose product label does not display the direct-selling company name

Dewi Citra can develop a customized plan once you’re ready to set up a Business in the country using any or a combination of the above suggestions. We can also offer you a comprehensive Safe Package that includes the following:
• Indemnity agreement
• Director appointment letter

We will be here to help you in local partner selection, market research and analysis, product registration, licenses for imports and business, and business visa and work permit. We can take care of all the major processes your business needs to start and run smoothly in Indonesia.

Let Dewi Citra help you set up a local company Indonesia that protects your interests. We can also help you find dependable, reliable, and carefully selected local partners that will help support and expand your business.