Establishment of Foreign Representative Offices

2009

Remidian Bahureksa Written by:

‐ Lana Varkonova With Approval from:

‐ Radi A. Juremi.

[ESTABLISMENT OF FOREIGN REPRESENTATIVE OFFICES] Without the proper and applicable information regarding Indonesia Corporate and Business Law, it would be hard to form and establish a Foreign Representative Office in Indonesia. That is why Remidian Bahureksa publishes this simple Guide and References concerning the Establishment of Foreign Representative Offices (for Foreign Capital Investment).

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REMIDIAN BAHUREKSA General and Legal Services Bureau

[email protected] || www.remidian-bahureksa.com

Establishment of Representative Offices (Foreign Capital Investment)

1. Basic.

Foreign Company Representative Offices are utilized by foreign companies and groups of foreign

companies for the purposes of:

a. Managing interests of company or affiliated companies; and/or

b. Preparing the establishment and development of foreign investment company in Indonesia

and in other countries.

The Representative office must be headed or managed by one or more of Foreign Nationals or

Indonesia citizen who act as the Office Manager or Representative Executive based on the Letter of

Appointment which created by the abovementioned Foreign Company or Company Groups which

located outside of the Indonesia Territoy.

The Representative Office, in carrying out its activities shall be subject to the following:

a. The office activities are limited in its role as a supervisor, liaison, coordinator, and managing

interests of the company or affiliated companies in Indonesia;

b. The office will not seek anykind of profits from the source of income in Indonesia including

carrying out activities which are not permitted or make a commitment/transaction in sale

and purchased of goods and/or services with companies or individuals in the country;

c. The Office will not participate in any form in the management of an enterprise, a subsidiary

or branch companies in Indonesia;

d. The Domicile of the office must be located in the Provincial Capital; and

e. The Office Manager or Representative Executive must reside in Indonesia.

2. Regulation.

a. Law No. 25 of 2007 Concerning Capital Investment;

b. Presidential Decree No. 90 of 2000 dated 10 July 2000 concerning Foreign Representative

Offices;

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REMIDIAN BAHUREKSA General and Legal Services Bureau

[email protected] || www.remidian-bahureksa.com

c. Decision of Head of Indonesia Capital Investment Coordinating Board No. 22 of 2001 dated 1

August 2001 concerning the Implementation of Regulations of the Presidential Decree No.

90 0f 2000 concerning Foreign Company Representative Offices.

3. Requirements.

To establish a foreign company representative office, the applicant must Submitted the KPPA Form

(Aplication Form for the Establishment of a Representative Office in Indonsia) in 2 (two) copies to

the Indonesia Capital Investment Coordination Board, with the below document enclosed:

a. Letter of Appointment from the Parent or Head Company;

b. Power of Attorney to sign the application if the participant is represented by another party;

c. Articles of Association of the Parent or Head Company and any Amendment(s);

d. Copy of Valid Passport (for Foreigner) or Copy of Identification Card Number (for Indonesia)

who will be proposed as a Representative Executive;

e. Letter of statement concerning the willingness to stay, and only work in the position as the

Representative Office Executive without doing other business in Indonesia.

‐‐‐ END ‐‐‐

FOR MORE INFORMATION, PLEASE DO NOT HESITATE TO CONTACT US


Approved by,

Radi Anky Juremi Managing Director / Office Partner

Remidian Bahureksa www.remidian-bahureksa.com

Submitted to BKPM in 2 (two) copies. Lampiran 3 Peraturan Kepala BKPM No. 1/P/2008 FORMULIR KPPA

APLICATION FORM FOR THE ESTABLISHMENT OF A REPRESENTATIVE OFFICE

IN INDONESIA I. Information concerning the foreign company which will open a Representative Office in Indonesia

1. Name of Company : …………………………………… 2. Line of Business : …………………………………… 3. Headquarter Address : …………………………………… - Phone Number : …………………………………… - Fax number : …………………………………… - E-mail : ……………………………………

II. Address of the Representative Office in Indonesia 1. Regency/City : …………………………………… 2. Province : …………………………………… 3. Address : …………………………………… : …………………………………… a. Phone Number : …………………………………… b. Fax Number : …………………………………… c. E-mail : ……………………………………

III. Information about the individual who will become the Representative Office’s executive

1. Full Name : …………………………………… 2. Citizenship : …………………………………… 3. Address : …………………………………… a. in the country of origin (if any) : …………………………………… b. in Indonesia : …………………………………… 4. Passport Number (for foreign) or : ……………………………………

Identification Card Number (for Indonesia) Valid until : ……………………………………

(1) Letter of appointment from the foreign company represented :

a. Number (if any) : …………………………………… b. Date : …………………………………… c. Valid until : ……………………………………

IV. Manpower Plan : Foreign Indonesian

a. Management : ……….. ……….. b. Expert(s) : ……….. ……….. c. Staff(s) : X ……….. ----------- ----------- Total : ……….. ………..

V. Incentives applied for :

1. ( ) Expatriate Work Permit 2. ( ) Multiple Exit / Re-entry Permit 3. ( ) Exemption from obtaining fiscal clearence for going abroad (SKFLN)

VI. Declaration

It is declared that this application has been properly and duly executed and that the applicant is responsible for its accuracy, correctness, and completeness, including all data and documents attached hereto.

……………………,……………,20……

Signature of

The management of The foreign company represented

Materai Rp. 6.000,-

(………………..………………) Name, Signature and Occupation

ENCLOSURES : 1. Letter of appointment from the parent company. 2. Power of Attorney to sign the application if the participant is represented by another party. 3. Articles of Association of the parent company and any amendment(s). 4. Copy of valid passport (for foreigner) or copy of identification card number (for Indonesia) who will be

proposed as a Representative Executive. 5. Letter of statement concerning the willingness to stay, and only work in the position as the

Representative Office Executive without doing other business in Indonesia.

Documents

Establishment of Foreign Representative Offices