Setting Up a Representative Office in Indonesia

Indonesia is one of the countries with a lucrative and potential market share for businessmen. Its population is more than 240 million inhabitants and occupies the position of the 4th of countries with the most population in the world. With such a positive economic atmosphere, Indonesia offers promising opportunities to open businesses.

Since Indonesia is a promising country to build a business, the first step a businessman can do is to do market research to find out which type of business is great to build. If you have a business abroad already and plan to do market research in Indonesia for your business plan to open a limited liability company later, you can set up a representative office in Indonesia.

Here is a glance information about Representative Office in Indonesia from Indoned Consultancy.

1. Foreign Representative Office (KPPA)

By setting up a KPPA, businessmen will be able to do a marketing research for their business plan in Indonesia in the future. This option is popular among businesses who are still exploring their prospects or do not plan any direct business activities yet, however still need to become a legal entity in Indonesia. Therefore, for businessmen who want to start a business in Indonesia, KPPA is one of the wise choices besides a limited liability company. The particular regulation regarding KPPA in Indonesia is stipulated in the Article 37 of the BKPM Regulation Number 13 of 2017.

In general, the process of acquiring a KPPA license can be completed within 25 working days, provided the required documents are completed. This estimation may be affected by a change of regulation or technical factors, such as the late delivery of the documents. In addition, some of the requirements must be made or witnessed by the Indonesian Embassy in the country of origin of the foreign company.

2. Foreign Construction Representative Office (BUJKA)

BUJKA is a 100% foreign construction service company that is established under the laws of foreign country and is domiciled and has an overseas head office conducting business in Indonesia by opening a representative office of a Foreign Construction Service Company. To be able to conduct business activities and open a foreign construction services representative office in Indonesia. BUJKA must obtain a Foreign Construction Services Business Enterprises License. The permission of the representative of the foreign construction service business entity was issued by the Investment Coordinating Board (BKPM).

3. Representative Office of Oil and Gas (KPPA MIGAS)

One of the representative offices also for MIGAS or oil and gas business field. Representative Office of foreign oil and gas companies (KPPA MIGAS) are offices established by foreign companies or a combination of foreign companies in other countries as their representatives in Indonesia, which are engaged in the oil and gas subsector. Similar to other representative offices, KPPA MIGAS obligated to have a KPPA MIGAS Licence from the Investment Coordinating Board (BKPM). This subsector must be accompanied by recommendations from the Directorate General of Oil and Gas, the Ministry of Energy and Mineral Resources (ESDM).

4. Representative Office of Foreign Trade Company (KP3A)

Representative Office of Foreign Trade Company (KP3A) is and office hosted by an individual Indonesia of foreign national designated by a Foreign Company or a Joint Foreign Company abroad as its representative in Indonesia. The head of this business entity consists of one or more Foreigners or Indonesia citizens appointed by the parent company as Representative Executives in Indonesia. KP3A prohibits carrying out trading activities and sales transactions, both from the initial level to completion such as submitting tenders, signing contracts, completing claims, and other similar activities.

Set Up a Representative Office with Indoned Consultancy

Setting up a representative office in Indonesia is not as difficult as how it looks like. In case you are planning to set up one of those type of representative offices, Indoned Consultancy will assist you to make your business plan comes true. Indoned Consultancy tries to give the best advice and solutions for your business in Indonesia and will guide you to set up your company. If you need assistance with hassle-free, do not hesitate to contact us.


The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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