Representative Office in Indonesia

For foreign investors and business owners, Indonesia has become an emerging market with high potential. To establish a foreign company in Indonesia, investors must go through a long and comprehensive procedure. This might not be an ideal for those who want to start investing right away. The best alternative for this issue is to establish a Representative Office in Indonesia. By doing so, foreign investors can create awareness for their businesses and even conduct market research in Indonesia before establishing their own company in Indonesia.

Types of Representative Offices in Indonesia

Kantor Perwakilan Perusahaan Asing (KPPA), is an office incorporated by an overseas company to represent itself in Indonesia. The functions are limited to: introduce and promote the products/services of the parent company, conduct market research and provide communication assistance to the parent company overseas.

Kantor Perwakilan Perusahaan Perdagangan Asing (KP3A), is an office incorporated by an overseas company where the core business is trading to represent itself in Indonesia. KP3A is commonly used to promote the parent company’s products overseas. Furthermore, there are 3 types of KP3A: Agen Penjualan (Selling Agent), in charge of collaboration and promotion, Agen Manufaktur (Manufacturing Agent), in charge of doing market research, Agen Pembelian  (Buying Agent), in charge of supervision

Kantor Perwakilan Perusahaan Asing Minyak dan Gas (KPPA MIGAS), is an office incorporated by one or multiple overseas companies to represent themselves in Indonesia, specializing in the oil and gas sector.

Badan Usaha Jasa Konstruksi Asing (BUJKA), is a representative office established by a foreign construction company in Indonesia. Representative offices are not the same as limited liability companies. Many foreign construction companies opt to establish BUJKA mainly because it does not require local shareholders.

Representative Offices Establishment Procedure in Indonesia

In Indonesia, representative offices in the forms of Kantor Perwakilan Perusahaan Asing (KPPA), KP3A, KPPA Migas, and BUJKA all have the same establishment procedure in general, which is to make an online application to the OSS. OSS, which stands for Online Single Submission, is an online public service channel newly introduced by the Indonesian government. The aim of this system is to integrate company establishment services in Indonesia under one roof which could hopefully make the entire process work more efficiently. Despite having a similar registration procedure, each type of representative office has their own set of requirements.

How can Double M Help?

Establishing a representative office in Indonesia requires the preparation of multiple documents. Double M strives to help our clients throughout the whole process. Should you have any inquiries, please contact us.

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