Being a product license holder in Indonesia involves navigating a complex regulatory landscape while ensuring compliance with local laws and standards. Understanding the responsibilities and processes associated with holding a product license is crucial for businesses operating in Indonesia.

Importance of Obtaining a Product License Holder

Securing a product license in Indonesia is a legal requirement for businesses intending to manufacture, distribute, or import products. This license ensures that the products meet safety, quality, and regulatory standards set by Indonesian authorities. Without proper licensing, businesses risk facing penalties, including fines or even the suspension of operations.

Process of Obtaining a Product License Holder in Indonesia

The process of acquiring a product license in Indonesia involves several stages. Initially, companies need to identify the specific type of license required based on their product category. Subsequently, they must compile necessary documentation, which may include product details, manufacturing processes, safety assessments, and compliance certificates. Submitting these documents to the relevant government agencies for review and approval is a crucial step in obtaining the license.

Compliance and Renewal Responsibilities

Upon obtaining a product license in Indonesia, it’s crucial for holders to uphold regulatory compliance, including product registration. This involves regular audits, thorough product testing, and a commitment to staying abreast of any alterations or advancements in regulatory mandates. Furthermore, product licenses come with expiration dates, mandating timely renewal to sustain seamless business operations. This comprehensive approach, encompassing both product registration and license maintenance, is integral for ensuring continued adherence to Indonesian regulatory standards.

Challenges and Advantages of Being a License Holder in Indonesia

Becoming a product license holder in Indonesia presents both challenges and advantages. While the stringent regulatory environment can be challenging to navigate, especially for newcomers, having a valid license establishes credibility and trust among consumers. It also demonstrates a commitment to product quality and safety, potentially enhancing market competitiveness.

How can Double M help?

Achieving the status of a product license holder in Indonesia requires a comprehensive grasp, precise adherence, and continuous dedication to regulatory norms. Double M, equipped with expertise in this field, ensures businesses can follow the essential procedures, maintain adherence, and remain informed about ever-changing regulations. This approach enables companies not just to secure and uphold product licenses but also to establish a credible standing within the dynamic Indonesian market.

Mystery shopping service has become an invaluable tool for businesses aiming to enhance their customer experience. Through this undercover practice, trained individuals assess various aspects of a company’s service, providing valuable insights from a customer’s perspective. Consequently, the feedback gathered helps businesses refine their operations and improve customer satisfaction, ultimately boosting their bottom line.

The Steps of Mystery Shopping Service

As businesses strive to enhance their customer experience, the utilization of mystery shopping has emerged as a strategic approach. Consequently, this undercover evaluation method involves trained individuals, often termed “mystery shoppers,” who discreetly interact with businesses, evaluating various aspects of services or products. Prior to delving into the assessment process, the mystery shopping journey typically comprises several crucial steps:

• Identification of Objectives: Defining specific goals and areas of evaluation.
• Assigning Missions: Providing detailed instructions to shoppers about their tasks and areas to evaluate.
• Data Collection and Reporting: Shoppers gather data, document experiences, and submit comprehensive reports.

Why Using Mystery Shopper

Employing mystery shopper services offers several advantages:

• Unbiased Feedback: Obtain honest and impartial feedback about customer experiences.
• Identifying Gaps: Pinpoint areas needing improvement in customer service or product offerings.
• Enhancing Customer Service: Improve staff training and operational processes based on insights.
• Competitive Advantage: Gain a competitive edge by staying ahead in meeting customer expectations.

In a competitive business landscape, understanding and meeting customer expectations are paramount. Moreover, mystery shopping services in Indonesia provide a unique and invaluable opportunity to gain insights directly from the customer’s perspective. Consequently, by leveraging this feedback, businesses can refine their operations, elevate their customer service, and ultimately strengthen their market position.

How Can Double M Help?

At Double M, we understand the significance of optimizing customer experience. Therefore, our tailored mystery shopping services are designed to help businesses gain comprehensive insights and make informed decisions to improve customer satisfaction and business performance. Leveraging our expertise, we aim to assist clients in enhancing their operations and standing out in today’s competitive market.

The halal industry in Indonesia has been booming in recent years. As the world’s largest Muslim population, this positions Indonesia to become a leading player in the Halal industry, particularly in halal tourism. Strategic measures are currently underway to maximize the potential of the halal industry.

How to Create a Comprehensive Halal Industry Ecosystem?

According to Yusuf Wibisono, Director of IDEAS, Indonesia aims to establish a leading global Halal industry. Achieving this involves streamlining certification and enhancing industry quality.

Moreover, boosting sharia financing and public education can shape a comprehensive Halal ecosystem. While seen as Muslim-centric, non-Muslim nations are catching up

The Emerging Destinations

Thailand, one of the world’s leading culinary destinations, are also expanding their coverage to halal cuisines. Meanwhile, South Korea is ramping up plans to strengthen its halal tourism sector. In order to brace themselves against the competition, we can look at the abundance of SMEs and MSMes that are focused on the halal industry in Indonesia.

Prospect of Halal Industry in Indonesia

In the perspectives of foreign business owners, Indonesia has undoubtedly become an exciting destination to invest their funds in. Investors who produce food and beverage, for example, are considered as the most potential players that can reap considerable revenue in Indonesia. However, it is important to note that they must obtain halal certification authorized by the Indonesian government and respective religious bodies.

As part of the government’s commitment to harness technological advances, halal certification in Indonesia these days is 100% digitized. You can find all the information you need for the SiHalal application, available to download in your mobile phones. With this level of ease, it is hoped that it will encourage more foreign investors to sell their halal products in Indonesia. With proper planning and execution involving the government and the investors, both parties can mutually benefit each other. 

How can Double M help?

Halal industry in Indonesia is predicted to emerge even more in the coming years. One of the mandatory requirements to take part in this market is Halal certification. Should you have any inquiries about this process, please contact us.

Personal income tax in Indonesia is taxed upon earnings such as salary, dividend, pension money, or interests. The Indonesian government taxes a specific percentage of these fees. Individuals, whether residents or non-residents, must pay personal income tax according to calculations. Typically, employers deduct personal income taxes, often managed by a dedicated HR department in charge of the payroll. However, it is also important for the taxpayers to know about their responsibilities.

Residents of Personal Income Tax in Indonesia

In Indonesia, the government divides personal income tax rates according to the amount of taxable income you earn. Here are the details:

If you earn up to IDR 50 million, the government charges you 5%. If your income falls within the range of IDR 50 million to IDR 250 million, the government charges you 15%. For income between IDR 250 million to IDR 500 million, the government imposes a 25% tax rate. If your taxable income exceeds IDR 500 million, the government levies a 30% tax rate.

Personal Income Tax Exemption

in Indonesia Based on the regulations, everyone who receives revenue in Indonesia is obliged to pay personal tax. However, there are several people who are exempt from paying personal income tax. Diplomatic staff and consulate staff from foreign countries with significant contributions to their Indonesian counterparts. Military personnel and civilian staff from foreign armed forces. Representatives from international organizations

Personal Income Tax Rates

In Indonesia, the government divides personal income tax rates according to the amount of taxable income you earn. Here are the details:

If you earn up to IDR 50 million, the government charges you 5%.
If your income falls within the range of IDR 50 million to IDR 250 million, the government charges you 15%.
For income between IDR 250 million to IDR 500 million, the government imposes a 25% tax rate.
If your taxable income exceeds IDR 500 million, the government levies a 30% tax rate.

Tax Return Documents in Indonesia

ITaxpayers in Indonesia need to lodge their personal income taxes for the annual tax return period from January 1st to December 31st by March 31st of the following year.

How can Double M help?

You are obliged to pay personal income taxes if you make money in Indonesia. With Double M’s help, you will be able to calculate and pay your personal income taxes while complying with the regulations.

Land ownership in Indonesia is an important aspect of company establishment in the country. If you decide to do business in Indonesia, there is a high chance that you will purchase land at some point. Having a land purchased and registered under your name could be very useful, since you can use it to build offices, workshops, or even factories to support your business operations.

What is Land Ownership?

Land ownership is a system that regulates and clarifies that a certain area of land is owned by an individual or group. In Indonesia, land ownership is an essential matter because rightful owners have special rights to use the land according to the type of ownership.  Land ownership in Indonesia is formulated in a written form and acknowledged by the law in the form of certificates that are issued by the Badan Pertanahan Nasional (BPN).

What is the Importance of Land Ownership?

According to Government Rule Number 24 of 1997 concerning Land Registration, land ownership is important for several reasons. First it gives legal certainty and protection for the lawful owner. Should there be any dispute in the future, they can prove themselves as the rightful owner by having land ownership. Furthermore, land ownership is also important to provide information to the government. This is necessary in order to help them create records and other administrative matters. 

Types of Land Ownership in Indonesia

Land ownership in Indonesia consists of several types based on the usage of the land. There are several types of land ownership in the country, such as:

1. Hak Milik

Hak milik is the type of ownership that belongs in the civil aspect. Furthermore, it has a strong legitimacy that can be passed through generations with no expiry. Specifically, Hak milik is written in the form of a certificate named Sertifikat Hak Milik (SHM). Consequently, an SHM can be used as collateral or for other financing processes. 

2. Hak Guna Bangunan

Hak Guna Bangunan (HGB) is a type of ownership right that allows the holder to construct a building on top of a land owned by other parties for a maximum of 30 years with a possibility of an extension for 20 years. If the period runs out, the holder can apply for another 30 years. HGB is transferable among individuals. However, it is important to note that HGB is written in a document named Sertifikat Hak Guna Bangunan which can only be obtained by Indonesian citizens. 

3. Hak Guna Usaha

Hak Guna Usaha (HGU) is a type of ownership rights that allow the holder to use state-owned land for business purposes. Specifically, the business sectors are specified to agriculture, fisheries, and livestock. A HGU is active for a maximum of 25 years, with the possibility of another 25 years extension. However, HGU is only eligible for Indonesian citizens or legal entities.

4. Hak Pakai

Hak Pakai is a type of ownership right that allows the holder to use state-owned land or lands owned by other parties for business purposes. Moreover, it is special because it is not only eligible for Indonesian citizens, but also for foreign citizens who reside in Indonesia. This type of ownership right is active for a maximum of 25 years, with the possibility of a 20-year extension.

How can Double M help?

Land ownership in Indonesia gives legal protection for the rightful owners. With Double M’s assistance, we will manage your land ownership matters efficiently.

Payroll Software in Indonesia has become an essential tool for businesses of all sizes seeking streamlined and compliant payroll management solutions. Previously, we have explained the advantages of using payroll service in Indonesia for your business operations. In recent times, many tech companies have developed their own payroll software, each with its own unique characteristics. Out of the many options available, it is important to select the one that suits you most. Here are several payroll software in Indonesia that you can choose

Why is Payroll Software in Indonesia so popular?

With emerging new companies appearing constantly, the number of employees being managed by each company has become way too much to be managed independently. As a result, the need for automated features for payroll services has become more pressing than ever. A payroll software will help companies manage their salary matters. 

Payroll Softwares in Indonesia

1. Gadjian

Gadjian is a cloud-based Human Resources management application from Indonesia that can be used for payroll, PPh 21 taxes, and BPJS fees.

2. Talenta

Talenta is an Indonesian payroll software which strives to help businesses manage and navigate their operations with an automated HR system and software. 

3. GajiHub

Based in the city of Yogyakarta, GajiHub differentiates itself from its peers by helping small to medium enterprises (SMEs). 

4. AxiaSolusi

AxiaSolusi is an HR software that provides the usage of an electronic workflow which enables you to assign and sanction tasks electronically.

5. Benemica

Benemica is a dedicated HR application for payroll and taxation aimed for companies, accountants, and consultants in Indonesia.

How to Choose Payroll Software in Indonesia

After finding out about the various payroll software options available in Indonesia, here is how you can choose the one that suits you best. Firstly, you must establish a clear idea of what your business will need in terms of features, cost, and ease of usage. Secondly, you must carefully match the criteria you are looking for with the existing payroll software options. Once you have identified the payroll software that aligns most closely with your requirements, you can proceed to conduct a trial on the software to ensure everything meets your expectations.

How can Double M help?

Even when you use Payroll Softwares in Indonesia, you still need a person to handle it. With Double M’s HR services, you will have qualified personnels to handle the payroll matters for your company. 

Withholding tax in Indonesia is a system where a third party is given the responsibility to cut or collect taxes from a certain payment. They later pay that amount to the government in order to comply with the regulations. Within the context of personal income taxes, withholding tax is paid in installments which are done by cutting certain amounts by the third party as a part of the tax services.

What are the Types of Withholding Tax in Indonesia?

 In Indonesia, there are several types of withholding tax payments. Such as withholding tax under Article 21 (PPh 21), withholding tax under Article 22 (PPh 22), withholding tax under Article 23 (PPh 23), withholding tax under Article 26 (PPh 26), withholding tax under Article 4 Chapter 2 (PPh 4 Ayat 2), and withholding tax under Article 15 (PPh 15). 

Withholding Tax under Article 21

In this article, it is stated that employers have to withhold tax from salaries and severance payments to their laid off employees while also paying tax to the State Treasury for the employee’s behalf. The employer is obliged to file the article 21 withholding tax on the 10th to 20th day of the following month when the tax is due to be paid. The tax taken from the employee’s salary can be claimed as tax credit on the employee’s annual tax return. It is important to note that taxpayers with no Tax ID Number (NPWP) will be charged 20% higher than the normal rate. 

Withholding Tax under Article 22

In this article, the taxes are taken from the company’s imported goods, income from the State Treasurer or other state-owned enterprises, or from the purchase of luxury products. For companies that are importing goods, the withholding tax rate stands at 2.5%. For unregistered importers, the withholding tax rate stands at 7.5%. Purchases of luxurious goods like cruisers, yachts, aircrafts etc are charged with a tax rate of 5%.  

Withholding Tax under Article 23

This article stipulates that certain payments made to taxpayers are due to be cut by a withholding tax rate of 15%. These stipulations apply for payments like dividends, interest, swap premiums, loan fees, royalties, prizes, and bonuses. 

Withholding Tax under Article 4 Chapter 2

This article further regulates that withholding taxes must be paid for incomes like rental of land and buildings, transfers of land and building rights, construction services, IPO, saving deposits, bank certificates, discount on bonds, lottery prizes, and dividends. 

Withholding Tax under Article 15

This final article regulates a withholding tax rate of 1.8% for the charter of local airlines, 1.2% for using the services of a local shipping company, and 2.64% for foreign shipping and airlines. 

How can Double M help?

Withholding Tax is a type of tax that is collected by a third party to be deposited for the government later on. With Double M’s help, you will be able to calculate and pay these taxes while complying with the regulations.

Golden Visa Regulation – Regulation of the Minister of Law and Human Rights (Permenkumham) Number 22 of 2023 concerning Visas and Stay Permits and Regulation of the Minister of Finance Number 82 of 2023 promulgated on August 30, 2023 became the basis for the implementation of the Golden Visa policy. This visa classification is intended for qualified foreigners who will benefit the country’s economic development, one of which is investors, both corporations and individuals.

“Golden visa is a visa granted as the basis for granting a residence permit for a period of 5 (five) to 10 (ten) years in order to support the national economy,” said Director General of Immigration, Silmy Karim on Saturday (02/09/2023).

To be able to stay in Indonesia for 5 (five) years, foreign individual investors who will establish a company in Indonesia are required to invest US$ 2,500,000 (around Rp. 38 billion). Meanwhile, for a 10 (ten) year stay, the required investment value is US$ 5,000,000 (approximately IDR 76 billion).

Meanwhile, corporate investors who form a company in Indonesia and invest US$ 25,000,000 or around Rp 380 billion will receive a golden visa with a 5 (five) year stay for its directors and commissioners; for an investment value of US$ 50,000,000, a 10 (ten) year stay will be granted.

Different provisions apply to individual foreign investors who do not intend to establish a company in Indonesia. For a 5 (five) year golden visa, the applicant is required to place funds worth US$ 350,000 (around Rp.5.3 billion) which can be used to purchase Indonesian government bonds, shares of public companies or placement of savings/deposits; while for a 10 (ten) year golden visa the funds that must be placed are US$ 700,000 (around Rp.10.6 billion).

“Because we are targeting qualified travelers, the requirements are more weighty. The longer the stay in Indonesia, the higher the guarantee value, especially for investment activities which can be up to around Rp 760 billion,” he added.

Silmy further explained that the golden visa was a mandate from President Joko Widodo when he assumed his duties as Director General of Immigration so that it was made a priority program to be completed within 6 (six) months.

Silmy said that the 6 (six) months were used to review and formulate the Golden visa policy, including changes to regulations and preparing derivative rules.

“From changes in Government Regulations, Ministerial Regulations, to Director General Regulations. The formulation of the golden visa policy involves many ministries,” he said. Previously, Indonesian immigration regulations did not regulate visas with a 10 (ten) year stay permit.

Golden visa holders are expected to enjoy a number of exclusive benefits from this type of visa. Among them are a longer period of stay, ease of leaving and entering Indonesia, and efficiency because there is no need to apply for ITAS at the immigration office.

“Once in Indonesia, they (golden visa holders) no longer need to apply for a limited stay permit (ITAS) at the immigration office,” said Silmy.

Indonesia is not the first country to implement golden visa. Similar policies have been implemented in various developed countries, including the United States, Canada, United Arab Emirates, Ireland, Germany, New Zealand, Italy and Spain.

“Countries that have implemented the Golden Visa policy feel its positive impact. Denmark, for example, has become one of the leading countries in innovation. Then the United Arab Emirates became a favorite destination country for foreign investors. Hopefully, with this policy in the future Indonesia will also receive a similar impact. Moreover, our country has a myriad of potential to be managed and developed,” he concluded.

Original Source: https://www.imigrasi.go.id/id/2023/09/02/aturan-hukum-golden-visa-disahkan-tarik-orang-asing-berkualitas-untuk-berinvestasi/

Employment regulations in Indonesia have undergone recent updates to ensure better worker protection and to align with evolving labor market dynamics. Generally, they consist of various aspects starting from basic responsibilities, job safety, and even about pension plans. Employment regulation consists of many different rules that govern different aspects of work. This regulation applies from the moment an employee is hired until their working period is completed. 

What are the Employment Regulations in Indonesia?

There are several laws and statutes that regulate employment matters in Indonesia:

1. The Manpower Law or Labor Law Number 13 of 2003, it was most recently amended in 2020 with the formulation of the Job Creation Law or Omnibus Law.
2. Industrial Relations Dispute Settlement Law or IDRS Law Number 2 of 2004.
3. The Employee/Labor Union Law of 2000

In 2021, certain sections of the Manpower Law amendments were proven unconstitutional. As such, the Indonesian government must address these issues within the period of 2 years. In that regard, it is important to note that new updates might arrive in the near future. 

Types of Employment in Indonesia

There are two main types of workers according to the employment regulations in Indonesia: permanent and fixed-term employees. In the case of a verbal agreement, the employer is responsible for providing the employee with an authentic appointment letter that clearly defines the timeline, expectations, and wages offered for the role. Meanwhile, the employment contract with a fixed-term employee is more strict. Employment agreements for fixed-term employees cannot include terms of a probation period. In this type of employment, verbal agreements are invalid. Furthermore, it is important to note that you can only extend the fixed-term employment contracts once. 

Working Hours in Indonesia

According to the Manpower Law, the normal working hours in Indonesia must not exceed seven hours per day, six days per week, and in total 40 hours per week. Female employees who are pregnant with doctor’s advice cannot work between 11 p.m. to 7 a.m. Furthermore, employees are eligible to receive overtime pay after finishing their seventh or eighth hour at work. Overtime policies vary between companies but overtime hours cannot exceed 3 hours per day and 14 hours per week. Overtime pay is worth double the hourly wage of the employee. At the minimum, every employee has the right to get a thirty-minute break after at least four hours of consecutive work. Employees who work five-days a week get Saturdays and Sundays off, while six-day workers get Sundays off. 

How can Double M help?

The government created employment regulations in Indonesia to protect the worker’s rights. With Double M’s help, you will be able to comply with the employment regulations in Indonesia. 

Dahsuskim permit in Indonesia is an ease of access given to foreign nationals who work as captains, ship crew/floating equipment operating in Indonesian territorial waters such as archipelago, continental shelf, and Exclusive Economic Zone (ZEE). In particular, this ease of access is granted in the form of visas, immigration permits, foreign registration and re-entry permits. 

Who is Eligible to Obtain Dahsuskim Permit in Indonesia?

Foreigners who work in the sea are surely obliged to have a Waters Limited Stay Permit (KITAS Perairan). Dahsuskim or Water KITAS can be extended by applying for an extension of stay permit at least 14 working days before the stay permit expires.

Requirements of Dahsuskim Permit

1. Dahsuskim application letter and guarantor from the TKA employer
2. Letter of application for limited stay permit (ITAS)
3. Letter of recommendation from a government agency

• Decree of the Director General of Sea Transportation
• Decree of the Director General of Capture Fisheries
• Ministerial decree

4. Copy of Passport
5. Copy of Entry stamp
6. Copy of e-Visa
7. Foreign Ship Agency Approval (PKKA)
8. Port clearance
9. International Meteorological Organization (IMO) Crew list

Dahsuskim Permit Application Procedures

Filing

• Employers must obtain a Foreign Ship Agency Approval Letter (PKKA) issued by the Directorate General of Sea Transportation to stop in Indonesian waters.
• Applicants must have a Permission Ashore Card if they wish to go ashore and is valid 7 days after issue.
• Application for SK Dahsuskim to the Directorate General of Immigration with the crew list document.

Application

• Employers apply for RPTKA and IMTA online as approval for work permits.
• In short, after the work permit is approved and the crew or floating crew come to Indonesian territory with their means of transportation, the employer must attach all the documents required for reporting and making a Waters KITAS to the Immigration office and be given a billing for PNBP payments.

Biometrics

• After submitting the application and payment of PNBP, foreigners who are crew members of ships or floating crews take biometrics at the Immigration office

Issuance of KITAS

• Immigration will issue a KITAS in accordance with the application of the employer who has completed the work contract of foreigners who are crew members of ships or floating crews. Overall, KITAS issuance is 2 working days after the biometric

How can Double M help?

Dahsuskim Permit is a special immigration facility in Indonesia that will help you conduct business in the country with ease. Thus, with Double M’s help, you will be able to complete the procedures with no hassle.