Regulation of Representative Office in Indonesia<\/h2>\n![\"Set](\"https:\/\/investinasia.id\/blog\/wp-content\/uploads\/2023\/05\/setting-up-a-representative-office-in-indonesia-1024x576.jpg\")
Set Up Representative Office in Indonesia (source: Pexels)<\/figcaption><\/figure>\nKantor Perwakilan Perusahaan Asing<\/i> (KPPA)<\/a> or General Representative Office is regulated under the Indonesian Investment Coordinating Board (BKPM<\/a>) Regulation No. 5 of 2019 jo. BKPM Regulation No. 6 of 2018 on Guide and Procedures on Investment Licensing and Facilities.<\/p>\nTo set up representative office in Indonesia<\/a>, foreign investors can register at the Risk-Based Business Licensing, Online Single Submission (OSS) system<\/a>. This system’s implementation is regulated under Law Number 6 of 2023 concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 concerning Job Creation into Law.<\/p>\nSo, what are the documents that must be prepared? Here are the list:<\/p>\n
\n- Article of Association<\/li>\n
- Letter of Appointment agreed upon by the Indonesian Embassy and legalized by a notary.<\/li>\n
- Letter of Intent from the parent company, agreed by the Indonesian Embassy and legalized by a notary.<\/li>\n
- Letter of Statement mentioning a Representative Office Executive is willing to stay and work only for their position in FRO without any other business activities in Indonesia.<\/li>\n
- Letter of Reference<\/li>\n
- Copy of the foreigner\u2019s passport, appointed as Representative Office Executive. Or identification card number if the Representative Office Executive is Indonesian.<\/li>\n<\/ul>\n
Also read:<\/strong> The Types of Companies in Indonesia: 2024 Complete Guide<\/a><\/strong><\/p>\nTypes of Representative Offices in Indonesia<\/h2>\n
Indonesia’s Government Regulation in Lieu of Law No. 2 of 2022 has brought about amendments to Representative Offices (ROs) and introduced four distinct types of Representative Offices in Indonesia<\/a>:<\/p>\n\n- Foreign Representative Office (FRO) or Kantor Perwakilan Perusahaan Asing (KPPA)<\/a><\/li>\n
- Representative Office for a Foreign Trading Company (TRO) or Kantor Perwakilan Perusahaan Perdagangan Asing (KP3A)<\/a><\/li>\n
- Representative Office for a Foreign Construction Company (BUJKA<\/a>)<\/li>\n
- Representative Office for a Foreign Electricity Company (JPTLA<\/a>)<\/li>\n
- Representative Office of Foreign Trading Companies in the Electronic Systems sector (KP3A PMSE<\/a>)<\/li>\n<\/ul>\n
Moreover, the regulation has streamlined the process for establishing a Representative Office in Indonesia.<\/p>\n
The operational scope of ROs is restricted to specific business activities such as market research, gathering information on potential clients, developing trade contacts, and collecting data on regulations and laws.<\/p>\n
\n- \n
Kantor Perwakilan Perusahaan Asing (KPPA) or Foreign Representative Office (FRO)<\/i><\/h3>\n
FRO is a great way for parent company learning business opportunities in Indonesia. However, FRO is not allowed to conduct commercial activities or make a profit. As for employment, FRO may hire foreigners or Indonesian. If foreign employees are employed, a FRO must also employ Indonesian.<\/li>\n
- \n
Kantor Perwakilan Perusahaan Perdagangan Asing (KP3A) or Representative Office for a Foreign Trading Company (TRO)<\/i><\/h3>\n
A TRO serves as a trading or manufacturing agent for the parent company abroad but is not allowed to run any sales or trade business. When setting up a representative office in Indonesia, Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing Bidang Perdagangan Melalui Sistem Elektronik<\/i> (SIUP3A Bidang PMSE) or TRO Business License for the Trade Sector is necessary.<\/p>\n
Suppose a TRO wishes to perform import activities. In that case, the activities must be conducted through a local company with a business license or a foreign investment company with a general import identification number. <\/span><\/p>\nAlso read:<\/strong> Difference Between Offshore and Onshore Companies<\/a><\/strong><\/li>\n- \n
Badan Usaha Jasa Konstruksi Asing (BUJKA) or Representative Office for a foreign construction company<\/i><\/h3>\n
BUJK is a representative office for a construction business. Unlike KPPA and KP3A, BUJK can handle projects in Indonesia by collaborating with a local construction company. BUJK must earn Sertifikat Badan Usaha (SBU), a Business Entity Certificate, and Nomor Induk Berusaha (NIB)<\/a>, or Single Business Number.<\/li>\n- \n
Jasa Penunjang Tenaga Listrik Asing (JPTLA) or Representative Office for a foreign electricity company<\/i><\/h3>\n
A JPTLA is a FRO that engages in electricity-supporting services. JPTLA\u2019s business activities include electricity installation consultation, construction, and maintenance. JPTLA may manage high-priced electricity assisting services if the projects are worth at least 100 billion rupiahs (US$6.9 million) or 10 billion rupiahs (US$696,000) if the projects are related to electrical maintenance and installation.<\/li>\n<\/ul>\n
Also read:<\/strong> Benefits of Setting up a Representative Office in Indonesia<\/strong><\/a><\/p>\nRepresentative Office Registration Process in Indonesia<\/h2>\n![\"Set](\"https:\/\/investinasia.id\/blog\/wp-content\/uploads\/2023\/05\/how-to-set-up-representative-office-in-indonesia-1024x768.jpg\")
Set Up Representative Office in Indonesia (source: Pexels)<\/figcaption><\/figure>\nBelow are the steps for registering a representative office in Indonesia:<\/p>\n
\n- \n
Prepare the required legal documents<\/i><\/h3>\n
The documents include the Article of Association (ACRA), Letter of Appointment, Letter of Intent, Business License, Letter of Statement, Letter of Reference, and copy passport of the directors.<\/li>\n
- \n
Pick the Representative Office Executive<\/i><\/h3>\n
The Chief of Representative Office can be a foreigner or an Indonesian worker. If the chief is a foreigner, they must possess a work permit.<\/p>\n
Also read:<\/strong> The Limitations of Representative Office in Indonesia<\/a><\/strong><\/li>\n- \n
Register at the Investment Coordinating Board<\/i><\/h3>\n
After the above requirements are complete, the legal documents should be given to the Investment Coordinating Board.<\/li>\n
- \n
Tax Registration<\/i><\/h3>\n
FRO should register for Nomor Pokok Wajib Pajak<\/i> (NPWP)<\/a> or a Tax Payer Registration Number from the Tax Office.<\/li>\n- \n
Earn Business Registration Number<\/i><\/h3>\n
Later on, FRO must obtain a Business Identification Number from the Online Single Submission (OSS).<\/li>\n
- \n
Opening Bank Account<\/i><\/h3>\n
Next, FRO shall open a company bank account to pay all the expenses, including employees\u2019 salaries and rent.<\/li>\n<\/ul>\n
Also read:<\/strong> What is Company Incorporation: Definition and Advantages<\/a><\/strong><\/p>\n\t\t\n\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"representative-office-promo\"](\"https:\/\/investinasia.id\/blog\/wp-content\/uploads\/2024\/12\/representative-office-promo.jpg\" "\\"representative-office-promo\\"")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n <\/p>\n
You may also check:<\/p>\n
\n- Representative Office vs Branch: What\u2019s the Difference?<\/a><\/strong><\/li>\n
- Representative Office vs. Subsidiary: What\u2019s the Difference?<\/a><\/strong><\/li>\n<\/ul>\n
Setting Up a Representative Office in Indonesia With InvestInAsia<\/h2>\n
For some investors, establishing a representative office could be pretty complicated. Therefore, a consultant or service provider will help you with all the procedures and requirements. With InvestInAsia, it only takes approximately two weeks to get it done.<\/p>\n
Offering high standards and responsiveness, InvestInAsia will help your business step foot in Indonesia. Thousands of companies have trusted us.<\/p>\n
Kantor Perwakilan Perusahaan Asing<\/i> (KPPA)<\/a> or General Representative Office is regulated under the Indonesian Investment Coordinating Board (BKPM<\/a>) Regulation No. 5 of 2019 jo. BKPM Regulation No. 6 of 2018 on Guide and Procedures on Investment Licensing and Facilities.<\/p>\n To set up representative office in Indonesia<\/a>, foreign investors can register at the Risk-Based Business Licensing, Online Single Submission (OSS) system<\/a>. This system’s implementation is regulated under Law Number 6 of 2023 concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 concerning Job Creation into Law.<\/p>\n So, what are the documents that must be prepared? Here are the list:<\/p>\n Also read:<\/strong> The Types of Companies in Indonesia: 2024 Complete Guide<\/a><\/strong><\/p>\n Indonesia’s Government Regulation in Lieu of Law No. 2 of 2022 has brought about amendments to Representative Offices (ROs) and introduced four distinct types of Representative Offices in Indonesia<\/a>:<\/p>\n Moreover, the regulation has streamlined the process for establishing a Representative Office in Indonesia.<\/p>\n The operational scope of ROs is restricted to specific business activities such as market research, gathering information on potential clients, developing trade contacts, and collecting data on regulations and laws.<\/p>\n FRO is a great way for parent company learning business opportunities in Indonesia. However, FRO is not allowed to conduct commercial activities or make a profit. As for employment, FRO may hire foreigners or Indonesian. If foreign employees are employed, a FRO must also employ Indonesian.<\/li>\n A TRO serves as a trading or manufacturing agent for the parent company abroad but is not allowed to run any sales or trade business. When setting up a representative office in Indonesia, Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing Bidang Perdagangan Melalui Sistem Elektronik<\/i> (SIUP3A Bidang PMSE) or TRO Business License for the Trade Sector is necessary.<\/p>\n Suppose a TRO wishes to perform import activities. In that case, the activities must be conducted through a local company with a business license or a foreign investment company with a general import identification number. <\/span><\/p>\n Also read:<\/strong> Difference Between Offshore and Onshore Companies<\/a><\/strong><\/li>\n BUJK is a representative office for a construction business. Unlike KPPA and KP3A, BUJK can handle projects in Indonesia by collaborating with a local construction company. BUJK must earn Sertifikat Badan Usaha (SBU), a Business Entity Certificate, and Nomor Induk Berusaha (NIB)<\/a>, or Single Business Number.<\/li>\n A JPTLA is a FRO that engages in electricity-supporting services. JPTLA\u2019s business activities include electricity installation consultation, construction, and maintenance. JPTLA may manage high-priced electricity assisting services if the projects are worth at least 100 billion rupiahs (US$6.9 million) or 10 billion rupiahs (US$696,000) if the projects are related to electrical maintenance and installation.<\/li>\n<\/ul>\n Also read:<\/strong> Benefits of Setting up a Representative Office in Indonesia<\/strong><\/a><\/p>\n Below are the steps for registering a representative office in Indonesia:<\/p>\n The documents include the Article of Association (ACRA), Letter of Appointment, Letter of Intent, Business License, Letter of Statement, Letter of Reference, and copy passport of the directors.<\/li>\n The Chief of Representative Office can be a foreigner or an Indonesian worker. If the chief is a foreigner, they must possess a work permit.<\/p>\n Also read:<\/strong> The Limitations of Representative Office in Indonesia<\/a><\/strong><\/li>\n After the above requirements are complete, the legal documents should be given to the Investment Coordinating Board.<\/li>\n FRO should register for Nomor Pokok Wajib Pajak<\/i> (NPWP)<\/a> or a Tax Payer Registration Number from the Tax Office.<\/li>\n Later on, FRO must obtain a Business Identification Number from the Online Single Submission (OSS).<\/li>\n Next, FRO shall open a company bank account to pay all the expenses, including employees\u2019 salaries and rent.<\/li>\n<\/ul>\n Also read:<\/strong> What is Company Incorporation: Definition and Advantages<\/a><\/strong><\/p>\n\t\t <\/p>\n You may also check:<\/p>\n For some investors, establishing a representative office could be pretty complicated. Therefore, a consultant or service provider will help you with all the procedures and requirements. With InvestInAsia, it only takes approximately two weeks to get it done.<\/p>\n Offering high standards and responsiveness, InvestInAsia will help your business step foot in Indonesia. Thousands of companies have trusted us.<\/p>\n\n
Types of Representative Offices in Indonesia<\/h2>\n
\n
\n
Kantor Perwakilan Perusahaan Asing (KPPA) or Foreign Representative Office (FRO)<\/i><\/h3>\n
Kantor Perwakilan Perusahaan Perdagangan Asing (KP3A) or Representative Office for a Foreign Trading Company (TRO)<\/i><\/h3>\n
Badan Usaha Jasa Konstruksi Asing (BUJKA) or Representative Office for a foreign construction company<\/i><\/h3>\n
Jasa Penunjang Tenaga Listrik Asing (JPTLA) or Representative Office for a foreign electricity company<\/i><\/h3>\n
Representative Office Registration Process in Indonesia<\/h2>\n
\n
Prepare the required legal documents<\/i><\/h3>\n
Pick the Representative Office Executive<\/i><\/h3>\n
Register at the Investment Coordinating Board<\/i><\/h3>\n
Tax Registration<\/i><\/h3>\n
Earn Business Registration Number<\/i><\/h3>\n
Opening Bank Account<\/i><\/h3>\n
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Setting Up a Representative Office in Indonesia With InvestInAsia<\/h2>\n