Representative Office

REPRESENTATIVE OFFICE (KANTOR PERWAKILAN)

To establish a Representative Office. A Representave Office is a  licensed office set up in Indonesia by a foreign company. It has no legal status and its permittedactivities are limited in scope, which generally includes carrying outmarket feasibility studies and liaison activities (i.e., acts as a local contact office to connect its overseas head office with parties in Indonesia).It is generally restricted for a RO to conduct any business activity inIndonesia (e.g., concluding contracts, issuing invoice, and receiving payment). There are different types of ROs (e.g., regional RO, tradeRO, public works RO, etc.) and each type has its own specific permittedactivity. The exception to this rule is a Public Works RO that can perform income generating activities, i.e. providing construction services.

License for Representative Office :

I. License for Foreign Company Representative Office (KPPA) :
  1. Procedures for Issuance of License for Foreign Company Representative Office (KPPA)
    • KPPA License must be owned by foreign companies to carry out activities of foreign representative office in Indonesia
    • Duration of KPPA License is 3 (three) years and may be extended 2 (two) times respectively 1 (one) year.
    • After period of 5 (five) years, KPPA License may be re-extended when KPPA License may be re-extended when KPPA activities are different from previous period activities.
    • Authority to issue KPPA License is on PTSP Center/BKPM.
    • Standard Operation Procedure (SOP) of the issuance of KPPA License is no later that 5 (five) working days. While the rejection is no later than 5 (five) working days.
    • KPPA may amend provisions that have been approved and established by PTSP-Centre/BKPM namely information about foreign company being represented, domicile of representative office in Indonesia, information about management of representative office and manpower employment.
    • Amendments are made through Amendment License of KPPA Provisions issued by PTSP Center/BKPM
    • Standard Operation Procedure (SOP) for issuance of Amendment License of KPPA (Kantor PerwakilanPerusahaan Asing) Provisions is no later than 5 (five) working days, while the rejection is no later than five (5) working days.
II. Licensed for Foreign Trading Company Representative Office (KP3A) :
  1. Procedures for Issuance of KP3A (Kantor Perwakilan Perusahaan Perdagangan Asing) License
  • Foreign Trading Company Representative Business License (SIUP3A) must be owned by foreign company to carry out KP3A activities which may be in form of selling agent and / or manufacturing agent and / or buying agent in Indonesia.
  • KP3A can be opened in the provincial capital and regencies/municipalities in all regions of the Republic of Indonesia. KP3A may open Foreign Trading Company Representative Branch Office in the capitals of province and / or other regencies/municipalities.
  • SIUP3A consists of :
  1. Temporary KP3A is valid for 2 (two) months from date of issuance.
  2. Permanet KP3A is valid for one (1) year from date of issuance
  3. Extension KP3A is valid for a maximum of 3 (three) years unless otherwise specified less than 3 (three) years in letter of appointment and may be extended according to validity period of appointment set out in letter of appointment.
  4. Amendment KP3A.
  • Foreign Trading Company Representative Branch Office is valid for a maximum of 3 (three) years unless otherwise specified less than 3 (three) years in letter of appointment and may be extended in accordance with validity period of appointment set out in letter of appointment.
  • Authority of KP3A issuance is in PTSP-Center / BKPM.
  • Standard Operation Procedure (SOP) for issuance of Temporary KP3A, Permanent KP3A and Extension KP3A is no later than 6 (six) working days, while the rejection is no later than five (5) working days.
  • KP3A may change regulations that have been approved and established by PTSP Centre/BKPM, namely information about foreign company represented, domicile of representative office in Indonesia, information about management representative office and manpower employment.
  • The amendment is made through Amendment SIUP3A issued by PTSP Center / BKPM
  • Standard Operation Procedure (SOP) for issuance of Amendment SIUP3A is no later than 5(five) working days, while the rejection is no later than five(5) working days.

GENERAL REPRESENTATIVE OFFICE REQUIRMENTS FOR KPPA

  • Letter of Appointment from the Principal
  • Letter of Statement from the Principal
  • Letter of Intent from the Principal
  • Domicile Letter for Office Space in Indonesia.
  • Article of association

 

Foreign Chief Representative Office:

  • Curriculum Vitae
  • Certificate of Graduation
  • Certificate of Employment
  • A passport or travel document which is valid for at least 18 (eighteen) months
  • Photographs

 

Foreign Assistant Representative Office: (if any)

  • Letter of Appointment
  • Curriculum Vitae
  • Certificate of Graduation
  • A passport or travel document which is valid for at least 6 (six) months
  • Photographs

 

The services cover:

  • Company License from BKPM;
  • Domicile Letter from Department of Trade;
  • Tax Registration Code Number Identification Card (NPWP);
  • Business Registration Mark ( TDP );
  • Compulsory Company Manpower Report (UU No. 7 / 1981);

III. Licence of Foreign Construction Service Business Entity (BUJKA)

Procedure for Issuance of Foreign Construction Service Business Entity (BUJKA)

  • Representative License is granted to BUJKA with great qualification in accordance with laws and regulations.
  • BUJKA Representative License may be used to carry out construction service business activities in all over Indonesian territories, consisting of:
    ~ BUJKA  New License
    ~ BUJKA License extension
    ~ Substitution of BUJKA License Data
    ~ Closing of BUJKA License
  1. BUJKA Representative License is valid for 3 (three) years and may be extended.
  2. Authority for issuing BUJKA Representative License is in PTSP-Center/BKPM, similarly the closing of BUJKA License.
  3. Standard Operation Procedure for issuance of BUJKA Representatives is no later than 2 (two) working days, while the rejection is not later than five (5) working days.
  4. Application for BUJKA Representative License for a New License, Extension and Substitution of BUJKA License Data subject to administrative fees as follows : construction planning to US$ 5,000 and / or construction implementation services amounting to US$ 10,000. Administrative fees are directly deposited by BUJKA to the State Treasury.