KPPA (Foreign Representative Office)
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Timeline: 7 - 14 business days
Foreign Company Representative Office (KPPA / KP3A)
An ideal setup for foreign parent corporations aiming to conduct market research, business development, liaison, and promotional activities in Indonesia without engaging in direct commercial sales or billing.
Step-by-Step Formation Process
Step 1: Legalization and translation of parent company documents by sworn translator.
Step 2: Submission of KPPA application through the BKPM OSS system.
Step 3: Issuance of NIB and Representative Office License (Izin Perwakilan).
Step 4: Registration of NPWP and immigration sponsorship for Chief of Representative.
Mandatory Documents Required
1. Articles of Association of foreign parent company (notarized and apostilled).
2. Letter of Appointment (LoA) and Letter of Intent (LoI) legalized by an Indonesian Embassy or apostilled.
3. Letter of Statement acknowledging prohibition of direct sales/revenue generation in Indonesia.
4. Passport/KTP and CV of the Chief Representative Executive.
Key Benefits
Low regulatory friction, no IDR 10B capital injection needed, provides legal sponsorship for foreign director KITAS visas to supervise operations.
Pitfalls to Avoid
Strictly prohibited from issuing commercial invoices, signing sales contracts, or receiving customer revenue directly in Indonesia.
Statutory Summary
- Capital Requirement:
- No paid-up capital requirement; parent corporation guarantees operational funding.
- Estimated Timeline:
- 7 - 14 business days
- Shareholder Restrictions:
- 100% subsidiary branch office of foreign parent company. Chief Representative can be a foreign expat or Indonesian citizen.
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