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General Representative Office (KPPA)

$1,500 $999

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General Representative Office (KPPA)

$1,500 $999

Foreign companies who wish to undertake research or marketing in Indonesia can open a general representative office (KPPA).

Scope of work has covered below:

  1. Obtain SIUPA (Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing) Approval of Representative Office from Investment Coordinating Board (BKPM)
  2. Obtain Company Tax ID (NPWP) from local tax officer
  3. Obtain Single Business ID Number (NIB) from Online Single Submission (OSS)

Estimated delivery time: 1 months

Description

Setting up a General Representative Office (KPPA):

There are three (3) types of representative office in Indonesia based on Article 21 Regulation of Head of Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) Number 15 of 2015 Concerning Guideline and Procedure for Licensing and Non-Licensing Investment (“BKPM Regulation No.15/2015”) as follows:

  1. Representative Office of Foreign Company (KPPA);
  2. Representative Office of Foreign Trade Company (KP3A); and
  3. Representative Office of Foreign Construction Services Enterprises (BUJKA).

A general foreign representative office is also called a Kantor Perwakilan Perusahaan Asing or KPPA in Bahasa Indonesia. They’re usually created for you to have a market presence with no capital requirements, before starting a business in Indonesia with a PT PMA.

As a representative office, keep in mind that you can’t generate local revenue or issue invoices. According to the Indonesian Investment Coordinating Board, a KPPA is a local branch of a foreign parent company has two main responsibilities:

Contrary to the foreign-owned company (PT PMA), which is subject to the Negative Investment List, foreign investors can set up a representative office in most sectors or industries in Indonesia.

This means that any business entity can open a representative office in Indonesia and makes it perfect for foreign investors who want to evaluate the market or communicate with Indonesian stakeholders.

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