Foreign investors could set up a Representative Office in Indonesia to study the market for maximum period of 5 years which incorporated by an overseas company / parent company to represent in Indonesia before developing a foreign investment companies in Indonesia. Foreign Representative Office are prohibited from directly engaging in operational activities, signing contracts, issuing official offices, receiving payments from its clients, and directly engaging any other profit generating activities.
Representative Office consists of :
General Foreign Representative Office (KPPA)
Foreign Company Trade Representative Office (KP3A)
Foreign Company Construction Representative Office (BUJKA)
General Foreign Representative Office (KPPA)
KPPA must be incorporated in an office building or tower and can only be in capital of Indonesian provinces. After 5 years, KPPA may be granted extension for different activities than before.
KPPA’s functionality is limited to :
- Manage the parent company’s corporate interests
- Prepare the establishment and development of its business in Indonesia.
Foreign Company Trade Representative Office (KP3A)
To perform KP3A related activities, the foreign company should obtain Foreign Company Trade Representative License (SIUP3A) on BKPM OSS. KP3A is prohibited to carry out any trading activities and sales transactions such as submitting tenders, signing contracts, settling claims, etc.
KP3A’s functionality is limited to :
- Introduce, promote and market the goods produced by a parent company, as well as providing information, or directions for use and importation of goods to companies or users in Indonesia.
- Conduct market research and surveillance in Indonesia for domestic sales of goods produced by parent company.
- Conduct market research on the items required by parent companies abroad (who appointed the company in Indonesia) as well as providing information about the terms of the export of goods to companies in Indonesia.
- Closing contracts for and on behalf of the company that is appointed by the parent company in Indonesia for export of goods.
Foreign Company Construction Representative Office (BUJKA)
Foreign Construction Company with large scale qualification should obtain a BUJKA license issued by BKPM to undertake service business activities in Indonesia such as engineering, construction projects, or EPC, and valid for 3 years, can be extended.
Company Dissolution and Acquisition
PT PMA and PT Local can be dissoluted once company assets and debts between the shareholders are resolved. The dissolvement needs to pass through some process from General Meeting of Shareholders (RUPS) preparation, liquidation, until dissolution or acquisition deed. Contact us for more information.
Incorporation in Other Countries
We offer corporate secretarial assistance in Singapore and Vietnam from incorporation, accounting, taxation, and visa services.
ABOUT INDOSERVICE
Indoservice was established in 2015 and helps clients who want to expand or establish a business in Indonesia. We have been providing services to several local and multinational companies.
CONTACT US
Plaza Mutiara 8th Floor
Jl. DR. Ide Anak Agung Gde Agung
Kuningan Timur, Jakarta Selatan 12950
Indonesia
