Aside from PT PMA, there are other offices occupied by the foreigner. It is differentiated by the sector held by the company, one of them named Foreign Company Representatives Office (KPPA). This is a representative office of foreigner which sometimes built before they permanently settle in Indonesia. This office sometimes does research or supervise the market and distribution for the company. By implementing this strategy, the company will have more time to learn their opportunities. Similar to PT PMA, the procedures for a foreigner to establish a company in Indonesia is needed.
Benefits of KPPA
- Less capital investment to build KPPA
- Less complicated procedures
- The operational funding will decrease
- Can be controlled directly by the investor from overseas
- KPPA is not being ruled by Negative Investment List
Required Documents of KPPA
Indonesian embassy acknowledges most of these following documents.
- Copy of association article
- Letter of appointment
- Letter of intent
- Statement letter from the head of representatives’ office
- Reference letter
- The identification card of representative
- Printed photograph size 4×6 cm in color
- Additional requirements for extension
- Additional requirements for changes
The next foreign company is specialized in trading sector named KP3A. Foreign trade company representative office in Indonesia requires various documents for registering. There are five licenses will be issued based on trading business. Specifically, temporary approval letter for the appointment of KP3A. The additional requirements for new business in the head office will be distinctive from the branch office. Then, the additional requirements need to be completed for extension of business license and changes of business license.
Representative offices of the foreign construction service company have two different requirements which are for new and extension license. A new registration needs more documents than the license extension.
Foreign representative office in oil and gas license is similar with KP3A SIUP which needs different requirement of new license and changes or extension. If the company need to do some changes and extend the license, it needs to attach four documents which are existing previous license, report of the company, General Director of Ministry of Energy and mineral resources’ recommendation letter, and other supporting documents. It is quite simple compared to the new registration of the license.
Representative offices of foreign construction services company need BUJKA license for joining the tenders’ construction, employ foreigner and local workers, and do the working activity like monitoring and consulting. The license of BUJKA lasts for around three years and can be extended based on the regulations. The procedure and requirement documents are quite similar to KP3A SIUP. To avoid the regulation mistake since the right of BUJKA is also different, using the local company from www.company-registration.co.id will ease the process without any miss.
All in all, procedures for a foreigner to establish a company in Indonesia is quite challenging, and sometimes it can be complicated. Then, the best solution is utilizing the company registration to finish the process. It is not only for the big well-established company but also for the representative office which is involved the foreigner.