In Indonesia, retail companies primarily focus on physical retail operations. However, with the rise of e-commerce, many are exploring the integration of Web Portals for Trade to expand their operations to online platforms. This legal framework allows companies to engage in electronic trade, aligning with the country’s growing e-commerce ecosystem while adhering to Indonesia’s regulations on electronic commerce systems.

Web Portal for Trade which are sets under Standard Classification of Business Fields (“KBLI”) 63122 is governed by several regulatory frameworks, which is The Law No. 11 of 2008 on Electronic Information and Transactions along with its recent update in Law No. 1 of 2024 (ITE Law), which establishes the foundational principles for retail businesses seeking to engage in e-commerce. Additionally, Government Regulation No. 80 of 2019 regarding Trade Through Electronic Systems (PP PMSE) continues to offer crucial directives for conducting e-commerce activities in Indonesia. In particular, KBLI 63122 permits businesses to serve as intermediaries or traders on electronic platforms.

A key consideration for retail companies is whether they can seamlessly add the e-commerce aspect under a different classification. Under Article 3 Ministry of Trade Regulation No. 31 of 2023, companies are permitted to diversify their business activities, as long as they comply with relevant regulatory requirements as long as they have a business license for their main business activities sectors. Importantly, KBLI 63122 is not classified as a single-purpose KBLI, allowing it to be combined with other KBLI codes that are also not single-purpose.

Therefore, Retail companies can effectively integrate e-commerce into their business models using KBLI 63122. This shift requires attention to regulatory compliance, particularly concerning data protection and consumer rights, but it also opens the door to significant growth opportunities in Indonesia’s booming digital marketplace.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Budhi Satya Makmur