Representative Office Launch Pad

Setting up a Representative Office in Indonesia

A Representative Office is an efficient way to establish a business presence in Indonesia before running full commercial operations.

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One of the benefits of a representative office is that it is not subject to the 1:4 work permit ratio

Depending on the nature and scale of activities being undertaken, representative offices may support up to 5 work permits. A representative office that has sourced more than IDR 100 million from Indonesia during the preceding year may be eligible for even more work permits.

Up to

work permits

Ratio

1:4

not required

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Activities

Types of business activities that are eligible to setup a 100% foreign owned Representative Office in Indonesia

A representative office renders non-revenue generating services to a foreign-domiciled head office through engaging in a limited range of activities.

Sourcing local goods or services in Indonesia

Supports product and service sourcing for the head office.

Inspecting quality and volume of goods

Controls the quality and volume of goods that the head office purchases in Indonesia.

Disseminating information about new products

Helps disseminate information about new products and services from the head office.

Reporting local business development

Prepares reports on local business development and activities.

Providing advice on distribution matters

Provides advice in various fields relating to goods distributed by the head office.

Exporting products ordered by the head office

Can export products ordered by the head office or affiliated companies.

Capital

Setting Up a Representative Office in Indonesia

Minimum IDR 3,000,000 paid up capital or 25% of estimated expenses for the first three years, whichever is greater. This capitalization must be brought/transferred into Indonesia from overseas.

Minimum capital

IDR 3,000,000

Stage 1

First 25%

Paid within the first 3 months of operation.

Stage 2

Second 25%

Paid within the first year of operation.

Stage 3

Third 25%

Paid within the second year of operation.

Stage 4

Final 25%

Paid within the third year of operation.

Documents

Required Documents from Mother Company (Foreign)

Documents from the foreign head office are required to ensure the company structure, ownership, location, staff, and business plan are complete.

Required documents

An official document from the foreign head office showing the company name, capital, objects, place of business, list of directors, authorized signatories, and the past three years of financial statements.
The total number of shareholders, their nationalities, and the number of shares they hold.
Office address in Indonesia and a map, including proof of ownership or possession of the office space.
The number, names, and salaries of the employees.
The reason why the representative office is necessary.
A Business Plan covering the forecast, type and size of business, stages of operations, machinery and equipment, economic impact, and technology transfer if any.
A declaration that the applicant, directors, managers, or appointed representative satisfy the qualifications and do not possess a prohibited characteristic.
Proof of appointment of the representative, passport copy, and proof of address in Indonesia or evidence of permission to enter Indonesia.
A power of attorney, if applicable, to the person representing the applicant during the process.

Business Plan must be submitted in Thai and certified by the applicant and translator. Official Mother Company documents must be notarized or attested by the Thai Embassy in the country where the mother company is registered.

Important note

The representative that has to be appointed by the authorised signatory in charge of the business operations in Indonesia must provide proof of appointment, passport copy, and proof of address in Indonesia or evidence of permission to enter Indonesia.

If applicable, a power of attorney to the person representing the applicant during the process should also be prepared.

Process

Overview of the process

The process starts with application preparation and ends with approval from the relevant authority.

Prepare application

Prepare the initial documents for the Representative Office setup.

Submit application to DBD

Submit the application together with all supporting documents.

Approval process

The approval process usually takes 3 weeks to 6 weeks.

Fees

Total Fees for setting up a Representative Office in Indonesia

IDR XXX for Representative Office setup and document preparation and submission for each Non-B Visa and Work Permit is IDR XXX.

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