Report Topics:
1:- General Information
2:- Cooling-off Period
3:- Pyramid Schemes
4:- Multi-Level Marketing
5:- Prohibition on Products
6:- Credit Restrictions Country
7:- Money Collections
8:- Licenses
9:- Status of Direct Sellers
10:- Earnings Claims
11:- Taxes and Fees
12:- Social Security
13:- Others
General Information
information.
Direct Sales is a sales system of a certain Goods through a marketing network which developed by the Direct Seller who operates with the basis of Commission and/or Bonus based on the sales to the Consumer beyond the retail locations.
Regulation of Government (PP). No. 29 of 2021 concerning the implementation of the trade sector
Article 1 Point 22
Cooling-off Period
No legislation.
Pyramid Schemes
Pyramid Scheme is a business activity that is not resulted from the sales of Goods but from the benefit of the Direct Seller membership opportunity to obtain the commission or income especially from the participation fees of the other person that joining in the future, or after such Direct Seller is joining.
- No. 29 of 2021
Article 1 Point 32
Multi-Level Marketing
Multi Level Marketing is the sales of certain Goods through the tiered marketing network which developed by the Direct Seller who operates with the basis of Commission and/or Bonus based on the sales of Goods to the Consumer.
PP. No. 29 of 2021 Article 1 Point 24
More information on Mulit-level Marketing
Prohibition on Products
Goods that include commodity futures product pursuant to laws and regulations and/or Services are prohibited to be marketed by way of Direct Sale system.
PP. No. 29 of 2021 Article 54
Credit Restrictions Country
No legislation.
Money Collections
No legislation.
Licenses
| to obtain a license company must following Indonesian Standard Industrial Classification (KBLI) No. 47999 there are the following requirements:
1. A business entity in the form of PT 2. Meets the criteria: a. Has exclusive distribution rights for goods that will be distributed through direct sales. b. Have a marketing program (marketing plan); c. Have a code of ethics; d. Recruit direct sellers through a network system; e. Selling goods directly to consumers through a marketing network developed by direct sellers; f. Employ at least 1 Indonesian citizen as a member of the board of directors and 1 Indonesian as a member of the board of commissioners after obtaining a license, the company is obliged to carry out the business licensing obligations, namely: 1. The company provides verbally and written information correctly to the prospective direct seller at least regarding: a. Company identity; b. Quality and specifications of goods; c. Condition and guarantee of goods and provide an explanation of their use, repair and maintenance; d. Marketing Program; e. Code of Ethics. 2. Companies that have recruited direct sellers are required to: a. Provide sales aids (starter kit) to each direct seller which at least contains a description of the goods, marketing program (marketing plan), and code of ethics; b. Ensure that the activities carried out by direct sellers are in accordance with the marketing program (marketing plan) and the code of ethics; c. Putting a label on the goods and / or packaging that contains at least the name of the company and a statement that the goods are sold using a direct sales system; d. Determining the price of goods sold in rupiah currency and applies to direct sellers and consumers; e. Provide commissions and / or bonuses based on the results of the sale of goods to be carried out by direct sellers and their networks as agreed; f. Provide a grace period for consumers to return goods with a period of 7 working days from the time the goods are received, if it turns out that the goods are not in accordance with what was agreed; g. Provide compensation, compensation and / or compensation for losses arising from the use, use and utilization of traded goods; h. Carry out coaching and training to improve the abilities and knowledge of direct sellers, so that they act correctly, honestly and responsibly at least once in 1 (one) year. i. Provide equal opportunities to all direct sellers to excel in marketing goods; j. Has a list of direct sellers who are members of its marketing network, complete with data on the identity of the direct seller; k. Selling goods that already have a distribution license or have met the quality standard provisions in accordance with statutory provisions; l. Ensure direct sellers do not sell goods through indirect distribution channels and / or marketplaces. 3. The company submits a report on the company’s business activities to the Central Government |
PP 5 of 2021 concerning IMPLEMENTATION OF RISK-BASED BUSINESS LICENSES
Status of Direct Sellers
Direct Seller is an individual person or a business entity in the form of a limited liability company who is an independent member of a marketing network or sales company.
PP. No. 29 of 2021 Article 1 Point 20
Earnings Claims
Commission of Sales which hereinafter will be referred to as Commission is the benefit that is granted by a company to the Direct Seller which the amount is calculated based on the real actual result, in accordance with the volume of the sales value of the Goods, either which obtained by the Direct Seller personally or that is obtained by its network. Amount of Commission and / or Bonus awarded to Direct Seller is at most 60% (sixty percent) of turnover company.
PP. No. 29 of 2021 Article 1 Point 29 and Article 49
Taxes and Fees
No legislation.
Social Security
No legislation.
Others
The Implementation of Traiding Business Activities by Direct Selling System.
The WFDSA International Guide to Direct Selling Legislation is a guide and is not exhaustive either in terms of subjects presented or for all areas of concern to direct selling companies. It is intended to cover general areas of concern. The Guide is not a substitute for legal counsel but only intended to alert you to the general nature of laws and regulations affecting the direct selling industry in a particular country. Consequently, before beginning an operation in any foreign country, it is strongly recommended that competent legal counsel be consulted. While every effort has been made to insure that the information contained in this Guide is accurate, the variety of sources used makes absolute verification difficult. Further, laws and regulations also can change from time to time without notice. Therefore, the WFDSA cannot be held liable for the information included in this publication.