What is the License Required for a Digital Marketing Service Business?
“Digital marketing is a skill to promote a product using digital media. It turns out that to create this digital marketing service business, there are several legalities needed! Here’s the full explanation!”
Along with technological advances, trends in the business world are also increasingly varied. One of them is the trend of Digital Marketing. Even domestic business actors are currently using digital marketing or digital campaigns as a means to promote their products.
Understanding Digital Marketing is a marketing activity or promotion of a brand or product using digital media or the internet. But in reality, digital marketing is not a skill that can be understood by everyone. Because it takes the accuracy of analysis and evaluation related to strategies to promote the brand in digital media. Therefore, a digital marketing service provider is needed for business actors to promote their business through the internet. The licensing for Digital Marketing service providers can be seen below:
Standard Indonesian Business Field Classifications (KBLI)
Digital Marketing Services has the Standard Indonesian Business Field Classifications (KBLI) with the code 73100. This group includes various advertising services businesses (either on their own or by subcontracting), including advisory, creative, production of advertising materials, planning and media purchasing. Activities include such as:
- Creation and placement of advertisements in newspapers, magazines and tabloids, radio, television, internet and other media;
- Creation and placement of field advertisements, for example, bulletin boards, panels, types of posters and pictures, leaflets, pamphlets, circulars, brochures and frames, window advertisements, showroom designs, car and bus advertisements and others;
- Illustrative media, namely the sale of space and time for various kinds of application advertising media;
- aerial advertising, distribution or delivery of advertising material or samples;
- Provision of advertising space on bulletin boards or billboards and others; creation of booths and other structures and exhibits; and
- Leading marketing campaigns and other advertising services aimed at attracting and retaining customers, such as product promotion, point of sale marketing, direct mail advertising, and marketing consulting.
Risk Level
With the enactment of a risk-based business license, business actors need to obtain a business license based on the level of business risk they have. As the business of providing digital marketing services, it has a low level of business risk. Therefore, those of you who have a business providing digital marketing services are required to have a NIB (Business Identification Number) as the identity and legality of business actors to run their business (Article 12 Government Regulation No. 5/2021).
After having a NIB, you will then have the following business licensing obligations:
- Applying K3L standards (when starting business activities);
- Own or control a place of business with a correct, permanent and clear address (when starting business activities); and
- Submit a business activity report to the Central Government (every 1 (one) year, in January no later than the 15th (fifteenth)).
Domestic Electronic System Operator Registration Certificate (TD PSE)
Furthermore, you as a digital marketing service provider must also have an electronic system permit as a Business License to Support Business Activities (PB UMKU) during the operational stage. The license is in the form of an Electronic System Operator Registration Certificate (TD PSE) which is regulated in the Minister of Communication and Information Technology Regulation Number 5 of 2020 concerning Private Scope Electronic System Operators (“Permenkominfo No. 5/2021”).
The things that need to be done by business actors as regulated in Article 3 paragraph (3) of the Minister of Communication and Informatics No. 5/2021, include:
- Overview of the operation of the electronic system;
- The obligation to ensure information security;
- The obligation to protect personal data; and
- The obligation to conduct an electronic system feasibility test in accordance with the provisions of the legislation.
Do you still confuse about how to get permission? Consult us Prolegal!
Author: Inayah Nurul Annisa
Translator: Desak Nyoman Ratna Sari