Closure of Representative Offices (KPPA) in Indonesia – Establishing a Representative Office (KPPA) in Indonesia is the easiest and fastest way for foreign companies to enter Indonesia. A representative office (KPPA) is a representative of a foreign company in preparation for the establishment and development of a Foreign Investment Company (PMA) in Indonesia.

A representative office (KPPA) has very limited activities, namely the KPPA is established in order to act as a supervisor, liaison, coordinator, and manage the interests of the company or its affiliated companies, as well as prepare for the establishment and development of a PMA company in Indonesia. And the representative office (KPPA) cannot be involved in any business that seeks profit.

However, due to the limitations in carrying out the activities of the representative office (KPPA), it is possible that it will be closed.

And below we inform you how the process of closing a representative office (KPPA) in Indonesia.

Definition of Representative Office (KPPA)

A Representative Office (KPPA) is an Office led by one or more individuals who are foreign citizens or Indonesian citizens appointed by a foreign company or a joint venture of foreign companies abroad as its representatives with the purpose of:

a. managing the interests of the company or its affiliated companies; and or
b. preparing the establishment and development of a foreign investment company in Indonesia or in another country and Indonesia.

Definition of Closure of Representative Office (KPPA)

Closure of Representative Office of Foreign Company (KPPA) is the submission of an application to the Ministry of Investment or BKPM – Investment Coordinating Board to close a KPPA that is no longer operating.

Mechanism closing Representative Office (KPPA)

1. Preparing required documents
2. Applicants submit a KPPA closure application through the OSS system – Online Single Submission
3. Filling out the KPPA closure form
4. Validation of KPPA NPWP / Tax
5. KPPA closure application verification process
6. KPPA closure application approval

After the KPPA closure approval is obtained, the next process of revoking other licenses owned by the KPPA. For example, BPJS, NPWP.

Requirements for Closing a Representative Office (KPPA)

1. Identity of the head of the office (RO), head of another foreign business entity, or person in charge who has been appointed;
2. NPWP of the representative office or NPWP of another foreign business entity; and
3. Last period representative office report;
4. Statement from the head of the representative office or the company’s board of directors in the country of origin stating that they do not have any debts or receivables with other parties in Indonesia; and
5. Letter of instruction or statement from the company’s board of directors in the country of origin regarding the closure of the representative office

How long is the timeline for the Closing of a Representative Office (KPPA) process?

The application will be verified no later than 3 (three) working days from the time the application is submitted. After the application is approved, the OSS system will issue a Revocation Letter and a NIB Revocation Letter.

How long does the Taxpayer Identification Number (NPWP) revocation process take?

12 (twelve) months for Corporate Taxpayers, after the issuance of the Letter Receipt/Electronic Receipt.

Conclusion

In general, to end the existence of a representative office (KPPA) in Indonesia Unlike limited liability companies, the KPPA Representative Office does not undergo a liquidation process, so closing this business entity is a much simpler process.

Do you need services for closing a Representative Office (KPPA)?

We, Indoservice can assist you in the process of closing a Representative Office (KPPA) & managing permits related to closing your company in Indonesia. Contact us immediately for more information at Telp. +62877-1449-8500 or email admin@indoservice.co.id.