Representative Office 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.
Free ConsultationKey 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
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Articles of Association of the parent company in English or its official translation in Bahasa Indonesia.
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Letter of Appointment appointing the Head of KPPA, authorized by the Embassy of the Republic of Indonesia (KBRI) or local Trade Attaché.
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A Letter of Statement from the Head of KPPA stating willingness to live and work only as the Head of KPPA in Indonesia.
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Letter of Intent to establish a KPPA, authorized by the Indonesian Embassy or local Trade Attaché.
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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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Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Stay Permit or electronic travel authorizations;
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Visas or electronic travel authorizations (e-Visa, e-VoA);
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Meet the Expert
Meet the Expert
Edy Tama, SH, LLM.
Chief Operating Officer at Business Hub Asia
Edy Tama is a seasoned legal and compliance executive with over 20 years of experience in Indonesia and Southeast Asia. As COO at Business Hub Asia, he oversees day-to-day operations and ensures regulatory integrity across legal, licensing, and client service teams. His core expertise is in corporate law, regulatory compliance, and risk management for international clients in emerging markets.
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