Foreign companies or foreigners willing to organize events in Indonesia have to comply with the regulations. Organizing a concert with a DJ or organizing a retreat in Bali and the rest of Indonesia requires meeting some requirements.
As with other activities, the organization of events is considered a business activity generating revenue. It is important as a first step to understand if the foreigner is coming to Indonesia to participate in an event or is coming to Indonesia to organize the event.
PARTICIPATING IN AN EVENT
Joining a retreat or a concert as a member of the event is different from organizing the event. If a DJ is coming to Indonesia, then this person will need to have a proper visa from a sponsor authorizing the person to join the event. The person in charge of declaring the revenue will be the company, and this company is responsible for paying the proper insurance.
For example, immigration defines the visa for music performers as follows: Performing music performances. DJs visiting Bali and the rest of Indonesia have to apply.
The Indonesian government also requires other speakers or people joining an event to have a special visa for the following. “Carry out activities related to speakers, lecturers, presenters, or public figures but not in an employment relationship with parties in Indonesia.”
Conducting activities on the Indonesian territory and generating revenue from this activity is considered work on the territory and requires, as a consequence, the proper associated visa. The website of the Indonesian government is molina. immigrate.go.id allows foreigners to apply for the rights visa. Yoga teachers and sports consultants have to comply with the regulation even if the trip is below 1 week.
ORGANIZING EVENTS IN INDONESIA
Foreigners willing to organize events in Indonesia are under the scope of a business activity done in Indonesian territory. As a consequence, the organizer needs to have a proper licence.
Option 1: Having a partnership with an organizer in Indonesia
If foreigners are willing to organize a single event or retreat in Bali and the rest of Indonesia, the fastest solution and cheapest solution might be to do a partnership with an existing company here that will sponsor the event and the foreign workers during the event. The organizer will be responsible for the insurance, pay the expenses on your behalf and will have legally the licence to host or organize the event.
Option 2: Setting your own event organizer company
If your plan is to organize more than one event, then the best solution is probably to set up your own event company in Indonesia to organize your retreat, concert, or other form of event.
The company can have as shareholders individuals or corporations willing to organize the event. The setup usually takes a few days to a few weeks. The company will apply for a business licence related to events.
Once the company has been established, the Indonesian government will provide a tax number called NPWP. This tax number is necessary to perform commercial transactions as an entity in Indonesia.
As a third step, the company will be able to sponsor work permits as well for foreign workers or hire local workers for the events.
Establishing a company also has some consequences, such as reporting the tax every month.
Before establishing a company, it is important to consider your business plan and study which solution is the most suitable for your project. Visa agents and other market entry companies might push for a solution or another. We recommend first to study your objectives before going to a solution. Having your company imply to maintain a company and tax and having a simple visa doesn’t mean that your visa makes you legal to organize the event.
Contact us if you want to know more and need advice on how to study your plan. Check our blog for useful knowledge for your business.
