E-commerce subsidiary in Bali

rahonui

I am in the process of trying to start-up an e-commerce subsidiary in Indonesia primarily for the Bali tourist market. We are already have a successful online booking, marketing and sales tool for small to medium hotels, accommodation providers and tourist service providers and we believe that our solution could help those in Bali with such businesses who are looking to increase their sales and manage their businesses using our online solutions.I have received differing advice, and legal costs, and I am hoping that their is someone out the on this site who has started up a similar type of business and would be able to offer some advice as how to best proceed.To begin with, I (a bule) would be the sole sales representative here in Bali with all of the billing, support and hosting of our solution coming from our office in Australia. I would not be getting paid in Indonesia and all of our clients would be paying for our service through our Australian office.We would probably be looking to hire some local staff in the future as the business expands. The staff we would be looking to hire would be some developers and some sales and support staff.Has anyone on this forum set up a subsidiary in Bali and have advice as to the best way to set up my visa such that I can legally work, sell and promote our services here in Bali?

Peter Ka

"online booking, marketing and sales tool for small to medium hotels, accommodation providers and tourist service providers"This means you need to get a travel agent license. A foreign company/person can't get that any more according to Indonesian law and Bali specific rules.You can wing it like 20 others that already offer identical services in Bali, but you, like them, would probably be breaking the law. Forget setting up a PMA for this business. It will never get approved. Check with a "good" (good luck) agent.My advice would be: set up a joint venture with a well known Bali Travel agent like Jack Daniels or so.

spicyayam

rahonui

How does you service differ from the many others currently available, such as booking.com, airbnb, agoda etc? It sounds like you will be competing against some big travel companies globally. Priceline, expedia etc. I would suggest talking to hotels directly and try to address a particular problem they might be having. It doesn't have to be in Bali. I can offer one suggestion, an inexpensive, well designed, channel manager mobile app.[/QUOTE]Thanks for your input Peter and Spicy.It is different in that it tweak-able and used as a management tool for the travel services not just as an advertising and sales like the booking.com etc. Our rates are also lower.We did and still do talk to hotels directly and we are constantly upgrading our solutions to meet their needs - which brings me to my problem which I am trying address of being able to 1) Start selling our solutions legally here in Bali2) Hire some developers to help us upgrade our solutionsI believe that you are right in saying that we will not be able to get the proper permits as a foreigner so I am going to go with setting up a PT with an Indonesian acquaintance and get my kitas through that. That will also give us the chance to hire a couple of developers.Looks like it takes about 3 months to set-up and be ready for business.Anyone else gone this route?

Peter Ka

Sure you can have a local set up a PT and set up the biz with your and your Australian company's help e.g. money, technology, know-how, etc. Just make sure to protect the Australian company's IP through solid contracts (in Indonesian language signed at Notary). Pay the Australian company IP license fees, admin fees, etc.