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Opening a Representative Office
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General
To establish a business in Indonesia, if you do not require a local legal entity for the investment proposed, you could choose to appoint an Agent or Distributor, or set up a Representative Office. Many foreign investors at the early stage of entering the Indonesia market choose to set up an Agency Agreement or Representative Office, then later after the business starts to grow they will apply for a Foreign Direct Investment Company (FDI) status.
A Representative Office can be established depending upon the line of business and the necessary licenses issued by the related government department. The limitation of a Representative Office is that they are not allowed to conduct direct sales and cannot issue Bills of Lading.
Representative offices are set up primarily for marketing, market research, or as buying or selling agents.
- Representative Office from Investment Board (BKPM) - regional representative
- Representative Office from Ministry of Industry & Trade - for bilateral trade
Click here for the BKPM application Form (Word document)
A: Representative Office from BKPM
Application for the establishment of regional representative offices (Kantor Perwakilan Perusahaan Asing, KPPA) shall be filed to Head of BKPM.
Application for the establishment of KPPA shall be issued by using Form KPPA.
Approval of Applications
Approval of applications for the establishment of KPPA shall be issued in the form of license of the establishment of KPPA.
License of the establishment of KPPA shall be issued by Head of BKPM.
License of the establishment of KPPA shall be issued not later than 5 (five) working days after the receipt of correct and complete applications.
B: Representative Office from Ministry of Industry & Trade
To establish a Representative Office with permission from the Ministry of Industry and Trade, the company's head office needs to issue three letters :
Letter of Intent - stating the intention of the company to establish a representative office Letter of Appointment - stating the appointment of the chief representative Letter of Statement - stating that the Chief Representative will follow Indonesian regulations
Click here for sample Letters (Word document)
The three letters must be stamped by a notary public and approved by the Indonesian Embassy in the home country of the firm. Upon approval, the Indonesian Embassy will issue a Letter of Notification (Surat Keterangan). Upon completion of the four letters the process can continue to the related government ministry in Jakarta, to incorporate a fixed license for 2 years.
Other Documents
Copy Article of Associatioan (Limited liability co) of the parent company and any amendment
Copy of Certifiicate or Letter of Tax Registration Number (company)
Copy of Valid Pasport (for foreigner) or Copy of identification card (for Indonesia) who will be proposes as a representative Executive
List of Curriculum Vitae or personal history (4 sets) is made by the party concerned which minimally containes birth day (age), nationality, education and working experience.
Business Plann for two years
Costs
Location in Jakarta, Bogor, Tangerang and Bekasi, ADMINISTRATION FEE Rp. 13.500.000,- OTHER LOCATION : Rp. 14.500.000,- | |
Wheather on Lombok
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