Representative Office (RO) Setup KPPA, KP3A, BUJKA

REPRESENTATIVE OFFICE IN INDONESIA

About, Requirements, Regulations & Setup Guide

Mandala Dipta – PT. Dipta Ganesha Konsultan

A Representative Office (RO) in Indonesia is a legal presence for a foreign company that wishes to explore the Indonesian market, conduct liaison and supervision activities, and build brand awareness without engaging in direct commercial trading.

Mandala Dipta provides complete legal services for establishing a Representative Office in Indonesia, including OSS registration, licensing, visa & KITAS for Chief Representatives, and ongoing compliance support — with on-site services from BSD City and Medan Marelan.

1. ABOUT A REPRESENTATIVE OFFICE IN INDONESIA

   A Representative Office (RO) is a non-revenue-generating entity established by a foreign parent company to represent its interests in Indonesia.

- Permitted Activities:

• Market research and feasibility studies
• Promotion and marketing activities
• Supervision and coordination of local partners
• Liaison between Indonesian partners and foreign head office
• Quality control and project monitoring

- Prohibited Activities:

• Direct sales and trading
• Issuing invoices or receiving payments
• Signing commercial contracts in the name of the RO
• Importing or exporting goods
• Generating profit in Indonesia

All commercial transactions must be conducted by the foreign head office, not the Representative Office.

2. TYPES OF REPRESENTATIVE OFFICES IN INDONESIA

    Indonesia recognizes several types of Representative Offices depending on business sector:

   A. General Representative Office (KPPA) for:

• Consulting
• Manufacturing supervision
• Technology
• Marketing & promotion
• Head office liaison activities

 B. Trading Representative Office (KP3A) for:

• Import/export supervision
• Supplier coordination
• International trading companies

C. Construction Representative Office (BUJKA) for:

• Foreign construction companies
• Engineering & infrastructure projects

D. Oil & Gas / Mining Representative Office for:

• Energy & natural resource companies

     Mandala Dipta will determine the correct RO classification based on your parent company’s activities.

3. ADVANTAGES OF A REPRESENTATIVE OFFICE IN INDONESIA

- 100% foreign ownership
-  No minimum paid-up capital
- Faster and simpler than PMA company
- Legal presence without tax from revenue
- Suitable for market entry & testing
- Professional Indonesian address
- Eligible for foreign Chief Representative KITAS

A Representative Office is ideal for companies that want to enter the Indonesian market with minimal risk before upgrading to a PMA company.

4. LEGAL REGULATIONS GOVERNING REPRESENTATIVE OFFICES

Representative Offices in Indonesia are regulated under:

• Indonesian Investment Law
• Ministry of Investment / BKPM Regulations
• OSS RBA (Online Single Submission – Risk Based Approach)
• Sectoral ministerial regulations (construction, trading, energy)

Key Legal Principles:

• Must be 100% owned by a foreign legal entity
• Must appoint one Chief Representative
• Must operate from a commercial office address
• Must submit periodic activity reports
• RO license is valid for 1 – 3 years and extendable
• Cannot conduct commercial profit-generating activities

Mandala Dipta ensures your RO is fully compliant with the latest OSS and investment regulations.

5. REQUIREMENTS TO SET UP A REPRESENTATIVE OFFICE IN INDONESIA

 A. DOCUMENTS FROM FOREIGN PARENT COMPANY:

• Certificate of Incorporation
• Articles of Association
• Board Resolution approving RO establishment in Indonesia
• Letter of Appointment of Chief Representative
• Company Profile
• Power of Attorney (if using a consultant)

B. DOCUMENTS FROM CHIEF REPRESENTATIVE:

• Passport copy (foreign national)
• Curriculum Vitae (CV)
• Color photo
• Residential address in Indonesia

C. OFFICE & ADMINISTRATIVE DOCUMENTS:

• Lease Agreement for office space (commercial zoning)
• Domicile certificate
• Office building permit (if required)

 All foreign documents must be:

• Article of association
• Legalized by Indonesian Embassy
• Translated into Bahasa Indonesia by sworn translator
• Letter of Appointment from the Principal
• Letter of Statement from the Principal
• Letter of Intent from the Principal.

  6. STEP-BY-STEP PROCESS TO SET UP A REPRESENTATIVE OFFICE

Step 1 – Free Consultation

Mandala Dipta reviews:

• Your foreign company profile
• Business sector
• Indonesia market entry plan
• Correct RO classification (KPPA / KP3A / BUJKA)

 Step 2 – Document Preparation & Legalization

We prepare:

• RO establishment forms
• Chief Representative appointment documents
• OSS business data
• Translations and legalization coordination

Step 3 – OSS RBA Registration

• OSS account creation
• NIB (Business Identification Number) issuance
• Representative Office Business License approval

Step 4 – Tax & Compliance Registration

• Tax domicile setup
• Reporting structure
• Compliance checklist

- Estimated Processing Time: 08 – 14 Working Days (subject to document completeness)

7. CHIEF REPRESENTATIVE, VISA & KITAS REQUIREMENTS

The Chief Representative (foreign national) must hold:

• A Working Visa
• A Representative Office KITAS

Mandala Dipta provides:

• Visa eligibility assessment
• Working visa application
• ITAS issuance
• ITAS extension & reporting
• Exit permits (EPO) if needed

8. DIFFERENCE BETWEEN REPRESENTATIVE OFFICE & PMA COMPANY

If direct trading or revenue is required, Mandala Dipta will recommend upgrading to a PMA company.

 9. SERVICES INCLUDED BY MANDALA DIPTA

• Representative Office licensing
• OSS registration & NIB issuance
• Visa & KITAS for Chief Representative
• Office domicile setup
• Tax registration
• License extensions
• Conversion from RO to PMA (if needed)

10. WHY CHOOSE MANDALA DIPTA?

• Legal consulting firm: PT. Dipta Ganesha Konsultan
• Physical offices in BSD City & Medan Marelan
• Specialists in foreign business entry
• Full RO + Visa + Compliance services
• Transparent legal fees
• English & Indonesian support
• No nominee, no illegal shortcuts
• Direct coordination with government systems

STATEMENT

If your foreign company wants to enter Indonesia safely for market research, supervision, promotion or project coordination, a Representative Office is the smartest legal first step.

Mandala Dipta – PT. Dipta Ganesha Konsultan is ready to handle your Representative Office setup, visas, OSS licensing and long-term compliance in Indonesia with full legal certainty.