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Representative Office in Indonesia (KPPA)

Overview

Expand your business reach in Indonesia by establishing a compliant Representative Office. Business Hub Asia provides a comprehensive service for setting up a legal and efficient Representative Office (KPPA). We guide foreign investors and business owners through every step of the process and ensure that all regulatory requirements from the Indonesian Investment Coordinating Board (BKPM) are met. This allows your overseas headquarters to explore the Indonesian market, establish a presence, and build relationships without engaging in direct commercial activities.

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Key Features

Legal Establishment Support

Complete assistance in the process of establishing a Representative Office (KPPA) according to BKPM regulations.

End-to-End Licensing Assistance

Assistance in obtaining Representative Office License (SLO), Business Identification Number (NIB), tax ID (NPWP), and related permits.

Dedicated Service for KPPA Needs

Regulatory consultation to ensure all representative office activities comply with Indonesian law.

Minimum Requirements

Deed of Establishment

Deed of Establishment of Foreign Company (Certified Copy).

Parent Company Documents

Letter of Appointment, Articles of Association and Letter of Intent from the parent company.

Authorization Letter

An authorization letter is required if an alternate party will sign the application on behalf of the participant.

Embassy Reference

Letter of Reference and Letter of Intent from the Indonesian Embassy or Indonesian Investment Promotion Centre (IIPC) where the parent company is located.

Articles of Association

Articles of Association of the parent company and any amendment(s).

Identity Document

Copy of a valid passport (for foreigners) or a copy of KTP (for Indonesians) who will be proposed as a Representative Office Executive.

Statement Letter

Letter of Statement of Representative Head in Indonesia.

Office Location

Representative Office Location Plan

Examples of Common Eligible Sectors

This service can be used for almost all business sectors, including:

Oil & Gas

Consumer Goods & Retail

Information Technology

Manufacturing & Heavy Industry

Healthcare & Pharmaceuticals

Financial Services & Insurance

Logistics & Transportation

Process and Timeline

1

Preparation of Legal Documents

  • Articles of Association of the parent company in English or its official translation in Bahasa Indonesia.

  • Letter of Appointment appointing the Head of KPPA, authorized by the Embassy of the Republic of Indonesia (KBRI) or local Trade Attaché.

  • A Letter of Statement from the Head of KPPA stating willingness to live and work only as the Head of KPPA in Indonesia.

  • Letter of Intent to establish a KPPA, authorized by the Indonesian Embassy or local Trade Attaché.

  • Letter of Reference from the Indonesian Embassy or local Trade Attaché.

Estimated Time: 3-5 working days (depending on the speed of document legalization in the country of origin).

2

Application for KPPA License through OSS

After the documents are complete, the company applies for a KPPA establishment license through the Online Single Submission (OSS) system managed by the Investment Coordinating Board (BKPM). This process includes:

  • Issuance of Business Identification Number (NIB) and Company Registration Certificate (TDP).
  • KPPA license registration

Estimated Time: 1-2 working days.

3

Taxpayer Identification Number (NPWP) Registration

Although KPPA does not conduct commercial activities, NPWP registration at the tax office is still required to fulfill tax reporting obligations.

Estimated Time: 1-2 working days.

4

Physical Office Rental

KPPA is required to have a physical office address in an office building located in a provincial capital city in Indonesia. The estimated time depends on availability and the office lease negotiation process.

5

Opening a Bank Account

After obtaining a license and NPWP, KPPA can open a bank account in the name of the representative office for operational purposes. Estimated Time: 1 working day.

*Estimated Time: 1-2 working days.

Important Consideration

  • Representative Offices are not allowed to conduct commercial activities or direct sales transactions in Indonesia.
  • KPPA can only focus on promotional activities, market research, concluding contract on behalf of parent company with Indonesian company for export purposes and supervision of the parent company’s interests in Indonesia.
  • The Head of Representative must reside in Indonesia during the term of office.
  • The validity period of the KPPA license is 3 years and can be extended.

Frequently Asked Questions

What is a Representative Office (KPPA)?

A Representative Office is an ideal entity for foreign companies that wish to study the market in Indonesia for market surveillance, networking, exploring business opportunities, or providing other managerial support in Indonesia to overseas parent companies.

Is it possible to use a foreign company brand on KPPA?

Yes. Representative Office (KPPA) can operate using the name of its foreign parent company, such as “Representative Office of ABC Ltd.” This practice supports the consistent use of the parent company’s global brand as the KPPA engages in market research and promotional efforts within the Indonesian market.

What if a company wants to make sales after opening a KPPA?

To legally engage in sales within Indonesia, a company is required to establish a permanent business entity such as PT PMA. Otherwise, all revenue generation must be handled by the client’s overseas headquarters.

Can KPPA be used as a billing and invoicing address?

No, Representative Offices (KPPA) in Indonesia cannot be used as billing addresses because they are not permitted to conduct commercial business, including receiving or making payments for goods/services. KPPA focuses on administrative and marketing activities. Commercial transactions involving a KPPA are typically processed by the parent foreign company.

Does the Representative Office need to pay taxes in Indonesia?

The Representative Office is still required to have an NPWP for tax reporting obligations, since KPPA does not carry out commercial activities.

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