A foreign representative office is a formation or entity that a foreign company uses to engage in market supervision, networking, investigating business chances, or offering other managerial needs in Indonesia to the holding company overseas.
The representative office is a perfect way for foreign investors to explore business opportunities in Indonesia. Although there is no restriction on hiring foreigners, a representative office is obligated to recruit Indonesian workers. A representative office is also limited to non-profitmaking activities.
In Indonesia, a representative office also called KPPA (Kantor Perwakilan Perusahaan Asing). KPPAs are regulated by the Indonesian Investment Coordinating Board (BKPM) and governed by specific guidelines and provisions.