OPENING TRADE REPRESENTATIVE OFFICE

Business licenses and permits required to open a representative office of foreign trade and carry out business activities in Indonesia

Representative Office of Foreign Trade Company,
hereinafter referred KP3A, means an office headed by an
Indonesian national or foreign national appointed by a
foreign company or a foreign Joint venture at abroad as
its representative office in Indonesia

FOREIGN TRADE REPRESENTATIVE OFFICE

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A foreign trade representative office is established by a foreign company or a group of foreign companies to act as its/their representative in Indonesia. It may be established as either a selling agent, manufacturer’s agent, and/or purchasing agent. 

According to Article 4 of the Regulation of the Ministry of Trade No. 10 of 2006 regarding the Procedure of Issuing the License of Foreign Trade Representative Office (“Permendag No. 10/2006”), a Foreign Trade Representative Office is prohibited from conducting trades, transactions, or sales activities which represent an entire transaction from beginning to end (e.g., resulting from tender document submission, contract signing, and claims settlement).

BUSINESS ACTIVITIES

The Foreign Trade Representative Office is permitted to:
 
Introduce, promote, and improve the marketing of products that manufactured overseas by Foreign Company or Groups of Foreign Companies. Liaise and provide information and guideline to any prospective Indonesian counterpart in the matter of exportation requirements of the products.

Providing information or instruction regarding the usage and import of such products to the company or user (in this regards, the Trade Representative Office shall appoint any national company as an agent for the promoted products; and the appointment shall be based on the approval from the Foreign Company or Groups of Companies).

Conduct market research and supervise the sales of product in relation to the products’ promotion in Indonesia. Conduct market research in relation to the product supply from Indonesia as required by the principal company as well as provide information and directives related to the export of the goods to companies in the country. 

Restricted Activities of Foreign Trade Representative Office
"A foreign trade representative office is prohibited to be involved in direct trading activities and sales transactions from the beginning until the completion of a project. Such commercial activities include the submission of tenders and signing of contracts".

BUSINESS LICENSE AND PERMITS

Business licenses and permits that must be owned by a foreign trade representative offices in Indonesia are as follows;
  1. Temporary Business License
    1
    Issued by BKPM - Indonesian Investment Coordinating Board. Valid for 2 months
  2. Letter of Domicile of Representative Office
    2
    Issued by Local Sub-District Office or Kelurahan in accordance with the location and address of the company.
  3. NPWP - Tax Registration Number
    3
    We assist you to get your visa and work permits for foreigners wishing to work in Indonesia. Our comprehensive range of immigration services cover every aspect of immigration for both corporate & individual clients.
  4. Visa and Working Permits
    4
    OPTIONAL Additional licenses and permits if employing foreigners as the head of the foreign trade representative office or experts.
  5. Permanent Business License - KP3A
    5
    Issued by BKPM - Indonesian Investment Coordinating Board. Valid for 3 years
  6. TDP - Company Registration Certificate
    6
    Issued by Local government city or county. Valid for 5 years
The period of validity of business license for representative office of foreign trade company (KP3A) is the appropriate period of validity of the letter of appointment of the foreign companies in the country, and a maximum of 3 (three) years unless otherwise determined less than three (3) years in the appointment and may be extended in accordance with the letter designation.

Preparations and step by step guide to set up a foreign trade representative office in Indonesia