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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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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    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  info@remidian‐bahureksa.com || www.remidian‐bahureksa.com       

Approved by,

Radi Anky Juremi Managing Director / Office Partner Remidian Bahureksa www.remidian-bahureksa.com         REMIDIAN BAHUREKSA General and Legal Services Bureau [email protected] || 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.

II.

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

: …………………………………… : …………………………………… : …………………………………… : ……………………………………

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.

VI.

----------………..

Incentives applied for : 1. (

) Expatriate Work Permit

2. (

) Multiple Exit / Re-entry Permit

3. (

) Exemption from obtaining fiscal clearence for going abroad (SKFLN)

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.