Establishing An Office In Indonesia

A Hot Tip about Sales Representative in Indonesia

Posted on: 1 Mar 2010

The Indonesian Investment Coordinating Board (BKPM) attempts to operate as a one-stop shop for investors. Recent reforms have reduced the paperwork process and delays in applying for the necessary government permits for foreign investments in Indonesia. A business permit issued by the appropriate government agency is required to establish an office in Indonesia. Depending on the nature of the business, several government agencies may be involved in issuing a business permit.

 

To open a foreign representative office in Indonesia, the firm must appoint a representative, who may be either an Indonesian national or an expatriate. A foreign representative office in Indonesia is actually more of a liaison office. Under Indonesian law, a representative office is restricted in the types of activities that it can pursue. For example, these offices are restricted to signing sales contracts, collecting payments, conducting trade activities and sales transactions, and participating in other related business activities. Prior to opening an office, however, the firm must establish itself as a legal entity by registering with the proper Indonesian government authorities. The process is as follows:

 

A letter of intent, a letter of statement, and a letter of appointment (indicating the appointed representative), from company headquarters on official letterhead, must be sent to the Indonesian Embassy or an Indonesian Consulate for notarization. A letter of reference from the embassy or consulate is also required (See Chapter 9 for contact information).

 

The notarized letter of intent, the notarized letter of appointment, and the letter of reference, along with the resume of the appointed company representative and his or her Indonesian work permit (KIMS Card) must to be submitted. If the appointed company representative is an Indonesian citizen, a copy of his/her Personal Identity Card (KTP) needs to be submitted instead. Documents are submitted to:

 

Mr. Makbullah Pasinringi

Officer in Charge

Directorate of Business Development and Company Registration

Directorate General of Domestic Trade

Ministry of Trade

Jl. M.I. Ridwan Rais 5

Jakarta 10110, Indonesia

Tel: (62-21) 385-8188

Fax: (62-21) 385-8188

 

Regional representative offices, classified as serving two or more other ASEAN nations, can

also be established in Indonesia. The regional representative office is limited to more of a

liaison role and is restricted from participating in many business transactions. Interested

firms should contact the Capital Investment Coordinating Board (BKPM) for registration

information:

 

Mr. Muhammad Lutfi

Chairman

Capital Investment Coordinating Board (BKPM)

Jl. Jendral Gatot Subroto 44

Jakarta 12190, Indonesia

Tel: (62-21) 525-0023

Fax: (62-21) 522-7607

 

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Posted: 01 March 2010

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