When you want to set up representative office in Indonesia and start doing business in indonesia, it is important for you to understand about KPPA.
Representative Office of a Foreign Oil and Gas Company (KPPA MIGAS)
This representative office is added to the BKPM Regulation and was previously not regulated by BKPM. Companies which are active in the business field of oil and gas may now open a KPPA MIGAS representative office.
The BKPM Regulation does not regulate the exact restrictions of a KPPA MIGAS, however we assume these are similar as regulated under the general KPPA.
This permit valid for 3 years and may be extended.
Representative Offices of Oil and Gas Foreign Companies (Oil and Gas KPPA) are offices established by foreign companies or joint foreign companies in other countries as representatives in Indonesia, which are engaged in the oil and gas subsector. This representative office can be led by individual Indonesian citizens or foreign nationals. As with other representative offices, the Oil and Gas KPPA must have Oil and Gas KPPA Permit from the Central One-Stop Service (PTSP) at the Investment Coordinating Board (BKPM) if it wants to carry out its activities in Indonesia. However, there are differences in the management of the Oil and Gas KPPA Permit, because the management of permits for representative offices in this sub-sector must be accompanied by recommendations from the Directorate General (Dirjen) of Oil and Gas, Ministry of Energy and Mineral Resources (ESDM). The application for Oil and Gas KPPA Permit is submitted online through the Information Service System and Electronic Investment Licensing (SPIPISE) with the following requirements:
- 1. Requests for new oil and gas KPPA licenses consist of:
- a. Application letter signed by the head of the company;
- b. Recommendation from the Director General of Oil and Gas, Ministry of Energy and Mineral Resources;
- c. Proof of Representative Head of Representative Office: – if foreigners: passports – if Indonesian citizen: KTP and NPWP;
- d. Office address legality document;
- e. When the photo size is 4 x 6 cm 2 pieces (colored);
- f. The original power of attorney is sufficiently stamped and the company stamp, if the management is not carried out directly by the company leader.
- 2. Application for extension of Oil and Gas KPPA License consists of:
- a. Oil and Gas KPPA permit;
- b. KPPA Oil and Gas Report;
- c. Recommendation from the Director General of Oil and Gas, Ministry of Energy and Mineral Resources;
- d. Supporting extension document.
- Application for permission above, is issued no later than 5 working days from the receipt of a complete and correct application. The Oil and Gas KPPA permit will be issued in the form of a certificate with a digital signature in pdf format and completed with a validation sheet. After obtaining the permit, if there is a change in provisions including changes in the name of the company, changes in the head of the representative office, the location of the office to another province, or changes in the number of foreign workers used, the representative office must submit a permit to change the provisions of the Oil and Gas KPPA with the requirements as following:
- a. Oil and Gas KPPA permit;
- b. KPPA Oil and Gas Report;
- d. Change support document. KPPA Migas Permit is valid for a maximum of 3 years and can be extended up to 2 years. Representative offices that are interested in extending the Oil and Gas KPPA Permit must submit the extension no later than 30 days before the validity period stipulated in the Oil and Gas KPPA License expires.
Regulation of the head of BKPM No.15 of 2015
- 1. All applicants must attach an AUTHORITY LETTER if the arrangement is not carried out directly by the head of the company, but carried out by company employees / legal consultant offices / notary offices that have not been registered with BKPM, plus the requirements of the authorized recipient’s data, namely:
- a. If the recipient of the power of attorney is a company employee (not a leader company): letter of appointment as an employee / contract work with a company or certificate as an employee;
- b. If the proxy is an Advocate Individual: An advocate card (cannot be assigned to an associate / office / company employee);
- c. If the proxy is an Advocate who forms an alliance civil law as a legal consultant: deed of establishment or deed civil partnership, decree as employee or contract work with a Legal Consultant Office or a certificate as an employee;
- d. If the recipient power of attorney is Notary: Decree on the Determination of Notary from the Ministry of Law and Human Rights, and a decree as an employee or contract of employment with the Notary Office;
- e. If the authorized recipient is a Representative of the Chamber of Commerce and Industry from the country of the prospective shareholder of the company (Chamber of Commerce): Decree as an employee or work contract with the company;
- f. If the authorized recipient is an Investment Company Country in the field of business consulting services: Business Permit / SIUP (consulting services business management / document management), Decree as a company employee;
- * For power of attorney, use Annex XXIV
- * Power of attorney typed and not handwritten
- 2. Records of articles of association (article of association / incorporation), from foreign companies that will open representative offices, in English or translations in Indonesian from translators sworn
- 3. Letter of Appointment from a foreign company that will open a representative office to the party appointed as Chief of Representative Office
- 4. Self-evidence of the Chief of Representative Office:
- a. if an individual is a foreign national, attach a valid passport record which clearly states the name, signature of the owner of the passport;
- b. if an individual is an Indonesian citizen, attach a valid ID card.
- 5. Letter of Statement from the Chief of Representative Office who expressed willingness to stay and only worked as Chief of Representative Office, without conducting other business activities in Indonesia.
After the approval permit is obtained, the Company must report to PTSP- PDPPM immadiately to get direction and guidance in completing the licencing area, no latter than 3 (three) months since the issuance of the Letter of Approva. The licensing areas include:
- 1. Certificate of Domicile of The Company
- 2. Tax Payer Registration Number
- 3. Taxable Confirmation Letter
- 4. Company Registration Certificate
- 5. And other required licensing
Indo-Ned Consultancy will help you to set up Representative Office (KPPA) in Indonesia. We have helped our clients to set up Representative Office (KPPA), so we can help you to set up your business in Indonesia faster and legally. Contact us for free consultation.