In the dynamic landscape of Indonesian business, the concept of a virtual office has emerged as a flexible and cost-effective solution. However, it is important to note that not all businesses are allowed to operate from a virtual office in Indonesia in 2023, as outlined in Circular Letter No. 6/2016 issued by the Head of BTSP DKI Jakarta.
Read also: What is a Virtual Office?
Let’s delve into the specific sectors that are prohibited, exploring businesses that are not allowed to use virtual offices according to the aforementioned circular:
Construction businesses require a physical office space for storing tools and equipment securely. Additionally, a physical office is crucial for obtaining necessary permits and undergoing inspections to ensure the safety and compliance of construction projects.
Despite the remarkable growth of e-commerce, it is one of the businesses not permitted to operate from a virtual office in Indonesia. E-commerce businesses need a physical office to handle product returns and customer complaints effectively, maintaining trust and customer satisfaction.
Property-related businesses, including real estate agents, require a physical office space for client meetings and showcasing available properties. Face-to-face interactions are crucial in this industry, and a physical office provides the professional environment needed for meetings and property presentations.
Financial services businesses, such as banks and investment companies, are prohibited from using virtual offices. They must have a physical office space to build trust with clients, comply with regulatory requirements, and conduct in-person meetings, especially for consultations and document signings.
Health-related businesses, including clinics and medical practices, need a physical office space to provide medical services to their patients. This space is equipped with examination rooms and facilities necessary for patient care, consultations, and medical procedures.
Educational institutions, such as schools and training centers, require a physical office space to provide classrooms and other facilities for their students. This space is essential for organizing classes, conducting meetings, and managing administrative tasks.
Transportation and Logistics
Businesses involved in transportation and logistics, such as shipping companies, need a physical office space to manage their operations efficiently. This space is used to coordinate deliveries, store vehicles and equipment, and handle administrative tasks.
Food and Beverage
Businesses in the food and beverage industry, including restaurants and catering services, must have a physical office space to prepare and store food safely. Additionally, this space is required for inspections and compliance with food safety regulations.
Media and Entertainment
Media and entertainment businesses, such as production companies and event organizers, need a physical office space to produce content and meet with clients. This space serves as a creative hub and facilitates face-to-face interactions with clients and colleagues.
Gaming businesses, including online game development studios, require a physical office space to operate servers and comply with industry regulations. This space is crucial for maintaining server infrastructure and ensuring smooth gaming experiences.
Alcohol and Tobacco
Businesses dealing with alcohol and tobacco must have a physical office space to store their products securely and comply with regulations. This space is also used for administrative tasks and meetings related to the distribution and sale of these products.
Weapons and Ammunition
Businesses involved in weapons and ammunition must have a physical office space to store their products safely and meet strict regulatory requirements. Safety and compliance are paramount in this industry.
Companies handling hazardous materials require a physical office space to store these products safely and comply with strict regulations. This space is equipped with necessary security measures and protocols to prevent accidents.
If you are uncertain whether your business falls into the category of businesses prohibited from using a virtual office in Indonesia, it is recommended to consult with the professional team at vOffice.
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