Bali, Indonesia, is an attractive destination for foreign investors looking to found a business in the thriving fruit trade industry.
With its rich agricultural resources and strategic location, Bali offers excellent opportunities for those interested in founding a foreign investment company (PT PMA) focused on large-scale fruit wholesale and distribution.
If you’re considering entering this market, understanding the specific requirements and regulations, such as KBLI code 46312, is essential.
This code, which covers the wholesale trade of fruits for final consumption, including oranges, apples, pears, mangoes, and other fruits, is a crucial aspect of setting up your business in Bali.
In this blog post, we’ll guide you through the process of founding a foreign investment company for large-scale fruit trade in Bali, Indonesia.
Overview
The business category under KBLI Code 46312 pertains to wholesale trading of fruits intended for final consumption.
This includes a wide range of fruits such as oranges, apples, pears, mangoes, and other types of fruits.
These businesses typically operate as intermediaries between producers or importers and retail businesses, or directly supply to large consumers.
Legal Basis
The regulatory foundation for this sector is primarily outlined in the “Peraturan Menteri Perdagangan Republik Indonesia Nomor 26 Tahun 2021”.
This regulation sets the legal framework and compliance requirements for the trade and distribution of fruits at the wholesale level within Indonesia.
Type of License
As per the “Peraturan BKPM Nomor 4 Tahun 2021” Article 12, there is an exemption from the minimum investment requirement for foreign direct investments (FDI), which is typically more than IDR 10 billion (excluding land and building costs) per KBLI 5-digit per project location.
This exemption applies to wholesale trade activities among others, indicating that large-scale investments in this sector enjoy certain regulatory reliefs.
Coverage of Service
The service coverage under this KBLI code typically involves the procurement, storage, and distribution of fruits to various types of customers including retailers, other wholesalers, or directly to large scale consumers such as hotel chains, restaurants, and institutional buyers.
Business Scale, Land Area, and Risk Level
The classification of wholesale fruit trading falls under large-scale business operations, reflecting the extensive nature and volume of transactions involved.
There are no specific regulations detailing minimum land requirements for this sector, allowing businesses flexibility in choosing their operational premises based on their logistical needs and business model.
The risk level associated with this business is considered low, largely due to the non-complex nature of the activities involved, which primarily include storage, handling, and distribution of perishable goods.
Authorities Granting Licenses
The authority responsible for granting licenses in this sector is the Investment Coordinating Board (BKPM) of Indonesia.
The Minister or Head of the Agency has the power to issue the necessary permissions and oversee compliance.
Requirements and Obligations for Business Licensing
Although the specific licensing requirements for wholesale fruit trading are not detailed in the provided regulations, businesses typically need to register their operations and obtain a tax identification number.
The obligations for entities in this sector are quite clear, they must maintain or control a permanent business and warehouse location with a correct and permanent address.
Furthermore, they are required to submit annual distribution reports to the central government, adhere to Health, Safety, and Environmental standards (K3L), and establish documented agreements with producers, suppliers, or importers, evidenced by contracts or written transactions detailing the goods to be distributed.
Frequently Asked Questions
- What types of fruits are commonly traded under KBLI Code 46312 in Bali?
The wholesale trade under KBLI Code 46312 includes a variety of fruits such as oranges, apples, pears, mangoes, and other fruits intended for final consumption.
- What are the initial steps to start a fruit trading business in Bali as a foreign investor?
To start a fruit trading business in Bali, foreign investors need to register their company, meet the minimum investment requirement of more than IDR 10 billion (excluding land and building costs), secure a suitable location for operations, and establish connections with local fruit producers or importers.
- What challenges do fruit trading businesses face in Bali?
The main challenges include managing perishability, ensuring efficient logistics to maintain fruit quality during storage and distribution, and navigating the regulatory environment.
- What distribution channels are typically used by fruit wholesale businesses in Bali?
Fruit wholesalers in Bali typically distribute their products to retail businesses, other wholesalers, hotel chains, restaurants, and institutional buyers both within Bali and in other regions.
