Foreign Common Representative Office

In Indonesia, a Foreign Common Representative Office is called a Kantor Perwakilan Perusahaan Asing (KPPA).

Foreign Common Representative Office

Benefits of a KPPA
  • Able to conduct market entry, research and promotion activities, without large investment requirements.
  • Represent its foreign parent company in Indonesia.
  • Foreign Chief Representative Officer (CRO) permitted.
  • No director or shareholders required.
  • Low start up costs and no minimum investment requirements.
  • Quick set up process.
  • Able to sponsor work permits and business visa.
Considerations re a KPPA
  • Restricted business activities; production and trading of goods and services are prohibited.
  • Prior incorporation of the foreign company which the KPPA will represent in Indonesia; affiliation between the foreign company and the representative office.
  • A minimum required office employee ratio of 3 Indonesians vs. 1 foreigner; hiring 1 extra foreign employee, requires the employment of 3 additional Indonesian employees.

If you are an established entrepreneur in your home country but not that familiar with what Indonesia has to offer, then opening a representative office is usually the first step to explore the market opportunities in Indonesia.

Besides setting up the KPPA, AdvintA can assist you in identifying promising business opportunities or finding potential business partners.

Your KPPA may also serve as a stepping stone to incorporating a PT or PMA when you wish to expand your business activities in Indonesia.

Besides the common representative office (KPPA), 3 other types of representative offices exist in Indonesia, required if the parent company’s business activity is in the field of trading, construction or oil & gas:

  • K3PA: representative office of a foreign trading company.
  • BUJKA: representative office of a foreign construction services company.
  • KPPA MiGas: representative office of a foreign oil & gas company.

The K3PA (or KPPPA) can serve as a selling agent, buying agent or manufacturing agent of the parent company.

The BUJKA can participate in construction projects of the parent company, provided that a joint venture is set up with a local construction company.

The KPPA MiGas usually engages in research and promotion activities before a permanent branch of the parent company is established.

The establishment process and business requirements of these 3 specific representative offices differ in part of that of the common (general) representative office.

Prior to establishment, please contact us for specific information about these representative offices or any of the other legal entities.