Are you ready to embark on an exciting business venture in the heart of Bali, Indonesia?
Setting up a foreign-owned company for the large-scale trade of vegetable oils and fats (KBLI Code 46315) is a fantastic opportunity to tap into the thriving export market. By setting up a wholesale and distribution business, you can capitalize on the growing demand for high-quality products in this sector. To succeed in this industry, it’s essential to understand the local market dynamics and navigate the regulatory landscape with confidence. With the right strategy and mindset, you can unlock the potential of this lucrative venture and make your mark in the world of international trade.
Overview
KBLI Code 46315 encompasses the wholesale trade of vegetable oils and fats.
Products covered under this code include margarine, non-dairy cream, and other similar items derived from vegetable fats.
Legal Basis
The legal foundation for licensing businesses involved in the wholesale trade of vegetable oils and fats is established by Regulation of the Minister of Trade of the Republic of Indonesia Number 26 of 2021.
This regulation outlines the requirements and procedures for obtaining the necessary permits to operate legally in this sector.
While we’ll delve deeper into the specifics of licensing later, familiarizing yourself with this regulation is a wise first step for businesses entering the Indonesian market.
Type of License
Unlike some other business activities in Indonesia, KBLI Code 46315 doesn’t necessitate a specific license beyond a general business permit.
This permit serves as the foundation for your legal operation and allows you to conduct business within the country.
However, there are still ongoing obligations and reporting requirements associated with KBLI Code 46315, which we’ll explore in detail in a later section.
Coverage of Service
It’s important to clarify the scope of “wholesale trade” as it applies to KBLI Code 46315.
This category refers specifically to businesses that sell vegetable oils and fats in bulk quantities to other businesses, rather than directly to consumers.
Retail stores purchasing these products for resale would fall outside the purview of KBLI Code 46315. Understanding this distinction is essential to ensure you’re operating within the correct classification for licensing purposes.
Business Scale, Land Area, and Risk Level
Scale: Businesses operating under KBLI Code 46315 are classified as “Large Businesses.”
Land Area: There are no specific regulations regarding the land area required for this business activity.
Risk Level: The Indonesian government categorizes this business type as “Low Risk”.
Authorities Granting Licenses
The Investment Coordinating Board (BKPM) is the authorized entity responsible for granting business permits in Indonesia.
Requirements and Obligations for Business Licensing
Requirements:
- Maintain a physical business location with a proper, permanent, and clearly defined address.
- Have a registered warehouse with a correct, permanent, and clearly defined address.
- Submit a monthly report on goods distribution to the Central Government.
- Implement Occupational Health and Safety (OHS) standards within the workplace.
- Establish documented business relationships with producers, suppliers, or importers through agreements, appointments, or transaction evidence for the goods being distributed.
All businesses in Indonesia, including those with KBLI Code 46315, are obligated to:
- Comply with all applicable laws and regulations.
- Maintain accurate records and financial statements.
- Implement measures to protect the environment.
- Provide a safe and healthy work environment for employees.
Frequently Asked Questions
- What does KBLI Code 46315 cover in the vegetable oils and fats trade?
KBLI Code 46315 specifically pertains to the wholesale trade of vegetable oils and fats, including products such as margarine and non-dairy cream.
- Who grants business licenses for the wholesale trade of vegetable oils and fats in Indonesia?
Business licenses for this sector are granted by the Investment Coordinating Board (BKPM) of Indonesia.
- What defines the scope of service for businesses under KBLI Code 46315?
This code applies to businesses involved in the bulk sale of vegetable oils and fats to other businesses, rather than direct sales to consumers.
- How does one ensure compliance with Occupational Health and Safety standards in this trade?
Businesses must establish and maintain OHS practices to provide a safe working environment for all employees.
