Description

Setting up a Trading Representative Office (KP3A):

A trading representative office (Kantor Perwakilan Perusahaan Perdagangan Asing or KP3A) is led by one or more foreigners or Indonesian citizens appointed by the parent company as Representative Executives in Indonesia.

The functionality of trading representative office (KP3A) 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/users in Indonesia
• Conduct market research and surveillance in Indonesia for domestic sales of goods produced by the parent company
• Conduct market research on the items required by the companies/users in Indonesia as well as providing information about the terms of the export of goods to companies in Indonesia
• Closing and signing of contracts for and on behalf of the company that is appointed by the parent company in Indonesia for the export of goods.

There are three types of trading representative office (KP3A), namely:

• Selling Agent, performing promotional or liaising activities
• Manufactures Agent, performing market survey activities
• Buying Agent, performing supervising or liaising activities

As with all representative offices, a trading representative office (KP3A) isn’t allowed to issue any invoices and all transactions should be under the parent company’s name. Trading representative office (KP3A) is allowed to open a branch office (this is not possible under a KPPA) and may be located in provincial capital cities or in any other city/district within Indonesia.