The government through the Ministry of Communication and Information Technology (Kemkominfo) is preparing new rules for the game industry in the country. Where later, game publishers are required to be Indonesian legal entities.
Kemkominfo’s plan was revealed by the Director General of Informatics Application of Kemkominfo, Semuel Abrijani Pangerapan, in a press conference in Jakarta on Friday (26/1/2024). “We really want to create an ecosystem for the gaming industry and are obliged to follow the rules in it. If you want to open a service in Indonesia, you must also build a company in Indonesia,” said Semuel. Furthermore, Samuel explained that the regulation was made in order to maintain the game industry ecosystem to run well. Later, game businesses are required to declare whether they stand as publishers or distributors. Samuel also added, this firm step was taken to improve the digital economy in Indonesia. No kidding, for game businesses that do not comply with the rules of this legal entity obligation, will be blocked. Even so, Kemkominfo promises to give time for game publishers to comply with all these new rules. The rules related to this game publisher will be published in the near future and will be contained in a Ministerial Regulation which is currently awaiting numbering at the Ministry of Law and Human Rights. Director General of Information and Public Communication (IKP) of the Ministry of Communication and Information, Usman Kansong, also stated that the government is still finalizing the regulations.
Business Legality for Game Publishers in Indonesia
Based on data released by the government, the value of revenue from the game industry or game applications that developed in Indonesia during 2022 reached IDR 25 trillion. This huge amount is considered to have the opportunity to grow the domestic economy. However, as much as 99.5 percent of the game industry’s revenue flows abroad to game application providers. Meanwhile, the income for domestic game industry players was recorded to be very little, only 0.5 percent. For this reason, the legal entity policy for game publishers is not intended for local publishers, but for foreign publishers who provide their services in publishing games by Indonesian developers. However, please note that most, or even all local publishers in Indonesia already have legality and pay taxes in Indonesia. Given that it is legally mandatory to have a business license and pay taxes.
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Moreover, the government has facilitated the process of obtaining a game industry business license using the risk-based Online Single Submission (OSS). Where previously business licenses required a Trade Business License or SIUP, Company Registration Certificate (TDUP), and Registered Certificate (SKT), now business licenses are simply replaced with a Business Identification Number (NIB). The game business field in Indonesia itself is included in the Indonesian Standard Classification of Employment (KBLI) code 62011. This type of activity in this Group includes video game development activities, such as game concept design activities, video game software development, creation of graphic assets, creation of animations related to video games, creation of sound and music, video game testing, and other support for video games. In addition, game businesses also need to take care of the Taxpayer Identification Number (NPWP), Standard Certificate (High Medium Risk), and other licenses depending on the risk and business field. If you want to have legal protection for your products or services, you must also register a trademark with the Directorate General of Intellectual Property according to your product or service category.
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One of the main benefits of forming a legal entity is to provide legal protection to its owners, including in this case game publishers. The existence of a legal entity gives a greater sense of professionalism and credibility than a business run as an individual entity. This can help build trust with both business partners and potential investors. Not surprisingly, the establishment of this business entity is even required by the Indonesian government in order to develop the national digital economy ecosystem. No kidding, the government will also block game publishers who do not have legal entities. Well, to fulfill the applicable rules regarding the establishment of legal entities, business actors can also consult with professional experts, one of which is Kontrak Hukum. As a digital legal platform, we have been trusted by more than thousands of companies and businesses in Indonesia in meeting their needs, including those related to the establishment of a Limited Liability Company (PT) legal entity. It is guaranteed safe and easy because the establishment of a legal entity at Kontrak Hukum is handled by experienced professional experts and includes the required legality documents such as deed of establishment, NPWP, NIB, and other business licenses needed by business actors.
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What are you waiting for? Let’s run a business easily and safely by establishing a legal entity at Kontrak Hukum! For booking information, visit the KH Services – Entity Establishment page. If you have any other questions, please feel free to consult for free at Tanya KH or send a direct message (DM) to Instagram @kontrakhukum.
