Representative Office of Foreign Company (KPPA)

The legal basis of a KPPA is the Investment Coordinating Board of Indonesian Number 5 the year 2019 j.o. Investment Coordinating Board of Indonesian Number 6 the year 2018. According to Article 1 number 25 Regulation of Investment Coordinating Board of Indonesian Number 5 year 2019, a representative office of a foreign company (hereinafter referred to KPPA) is an office headed by an individual Indonesian citizen or a foreign citizen appointed by a foreign company or a combination of foreign companies abroad as their representative in Indonesia.

KPPA is one of the investment types in Indonesia. For businessmen who want to start a business in Indonesia, KPPA is one of the wise choices. If you are planning to set up a KPPA, Indo-Ned Consultancy will assist you to make your business plan comes true. Should you wondering what are activities allowed for a KPPA, below are the explanation.

1. The Activities of KPPA

As the representative office, a KPPA has limit activities. Those activities are determined by Article 10 Regulation of Investment Coordinating Board of Indonesian Number 6 the year 2018, namely:

  • As a supervisor, liaison, coordinator and take care of company interest or affiliated companies;
  • Prepare business establishment and development foreign direct investment companies in Indonesia or other countries or other countries and Indonesia;
  • Located in an office building in the provincial capital;
  • Does not earn income from sources in Indonesia include does not permitted to implement an activity or does something engagement/sale and purchase transaction of goods or service commercial with companies or individuals in domestic; and

2. Permissible Location for KPPA in Indonesia

Following the determinate of the activities of a KPPA, the location to set up a KPPA is only allowed at provincial capital in Indonesia. To assist you to decide the location, below are the several locations to set up a KPPA:

  • Surabaya
  • Jakarta
  • Bandung
  • Semarang
  • Medan
  • Makassar

3. The Operation of KPPA

Each KPPA must have a chief of a representative office. The chief of KPPA must be domiciled in Indonesia, and fully responsible for activities of KPPA and not allowed to do other activities besides to the interest of KPPA and does not have any other position as head of a company and/or other KPPA. In the case of Chief of KPPA occupated by foreign workers, the KPPA must employ Indonesian workers.

Each KPPA also must have a license to operate. The license name KPPA License. How to get the KPPA License? Do not be hesitate and worry because Indo-Ned Consultancy is here for you!

Below are the steps to request the KPPA License.

  1. Submit an application online through SPIPISE with the required documents.
  2. The application intended above will be issued at least 3 (three) days work since complete application accepts.
  3. KPPA License is issued in the form of a certificate with an electronic sign in PDF format.
  4. In the case the application of KPPA License rejected, Head of BKPM or the functionary appointed will write Letter of Denial at least 2 (two) days work.

Indeed the process and bureaucracy will not as simple as it. However, no need to hesitate or afraid to process establishing a KPPA in Indonesia. Indo-Ned Consultancy Legal Team can assist you in establishing a KPPA easily. We are available at Jakarta, Bali, and the Netherlands. Please, kindly simple click Contact us and make your business plan happen!


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