Foreign Representative Office Establishment in Indonesia

A simple guide and reference for Establish a Foreign Representative Office in Indonesia.

1. Basic.

  • Foreign Company Representative Offices are utilized by foreign companies and groups of foreign companies for the purposes of:
    • Managing interests of company or affiliated companies; and/or
    • Preparing the establishment and development of foreign investment company in Indonesia and in other countries.
  • The Representative office must be headed or managed by one or more of Foreign Nationals or Indonesian citizen who act as the Office Manager or Representative Executive based on the Letter of Appointment which created by the above mentioned Foreign Company or Company Groups which located outside of the Indonesian Territory.
  • The Representative Office, in carrying out its activities shall be subject to the following:
    • The office activities are limited in its role as a supervisor, liaison, coordinator, and managing interests of the company or affiliated companies in Indonesia;
    • The office will not seek anykind of profits from the source of income in Indonesia including carrying out activities which are not permitted or make a commitment/transaction in sale and purchased of goods and/or services with companies or individuals in the country;
    • The Office will not participate in any form in the management of an enterprise, a subsidiary or branch companies in Indonesia;
    • The Domicile of the office must be located in the Provincial Capital; and
    • The Office Manager or Representative Executive must reside in Indonesia.

2. Regulation.

  • Law No. 25 of 2007 Concerning Capital Investment;
  • Presidential Decree No. 90 of 2000 dated 10 July 2000 concerning Foreign Representative Offices;
  • Decree of Head of Indonesian Capital Investment Coordinating Board No. 22 of 2001 dated 1 August 2001 concerning the Implementation of Regulations of the Presidential Decree No. 90 0f 2000 concerning Foreign Company Representative Offices.

3. Requirements.

  • To establish a foreign company representative office, the applicant must Submitted the KPPA Form (Aplication Form for the Establishment of a Representative Office in Indonsia) in 2 (two) copies to the Indonesia Capital Investment Coordination Board, with the below document enclosed:
    • Letter of Appointment from the Parent or Head Company;
    • Power of Attorney to sign the application if the participant is represented by another party;
    • Articles of Association of the Parent or Head Company and any Amendment(s);
    • Copy of Valid Passport (for Foreigner) or Copy of Identification Card Number (for Indonesia) who will be proposed as a Representative Executive;
    • Letter of statement concerning the willingness to stay, and only work in the position as the Representative Office Executive without doing other business in Indonesia.

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