establishment process of ordinary rep office in indonesia

8/3/2019 Establishment Process of Ordinary Rep Office in Indonesia

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GENERAL PROCEDUREFOR ESTABLISHMENT OF REPRESENTATIVE OFFICE OF FOREIGN COMPANY

1. OBJECTIVESThe purpose and objective of this procedure is to provide sufficient information on the procedureof and documents needed for the establishment of Representative Office of Foreign Companyunder BKPM authorization in Indonesia.

2. SCOPE

The procedure set forth in this document is based on relevant regulations and commonpractices in Indonesian governmental institution with a note that said government institution in adifferent region may have a different policy concerning the required documents. Theseprocedure shall only apply to the establishment process of a Representative Office of ForeignCompany under BKPM authorization in Indonesia started from the Application forRepresentative Office establishment to Investment Coordinating Board (BKPM) to the obtainingof Company Register (TDP) of the authorized Trade Service. This documents do not describesthe processes after the obtaining of TDP, the processes of the Representative Office

establishment or processes in obtaining technical licenses or permits.

3. ABBREVIATIONThe following abbreviations shall be interpreted as follows:

3.1. KPPA (Kantor PerwakilanPerusahaan Asing)

: Representative Office

3.2. BKPM (Badan Koordinasi PenanamanModal)

: Investment Coordinating Board

3 3 SPPM (S rat Pendaftaran In estment Registration Certificate


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5. PROCEDURES

5.1 Application for Representative Office of Foreign Company EstablishmentThe establishment of Representative Office of Foreign Company can be done in the BKPMby submitting the duly stamped application and the supporting documents to obtain

Representative Office of Foreign Company Permit. The supporting documents are :

a. Articles of Association of the Principal Company in english and its amendments (if any);b. Letter of Appointment from the Principal of the Company that appoint a Representative

Executive;c. Copy of valid Identity Card (KTP) for Indonesia Citizen or Copy of valid Passport for

foreign national of the appointed Representative Executive;

d. Letter of Statement from the appointed Representative Executive concerning thewillingness to stay, and only work in the position as the Representative Executive withoutdoing other business in Indonesia.

e. duly stamped Power of Attorney from the management of the Principal Company.

The Representative Office of Foreign Company Permit shall be issued in five (5) workingdays after the obtaining of the completed application receipt by BKPM official with copiessend to :

a. Minister of Finance;b. Minister of Trade;c. Minister of Manpower and Transmigration;d. Head of the Representative of Republic of Indonesia in the origin country of the Principal

Company;e. Governor/Regent/Major.

5.2 Obtaining SKDPSKDP is issued by the sub district where the Representative Office of Foreign Company is


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5.3.2 For Obtaining the NPWP of the Repreentative Office of Foreign Companya. Copy of Representative Office of Foreign Company Permit from BKPM;b. Copy of SKDP from sub-district office;c. Copy of the NPWP of the Representative Executive;d. Copy of the Identity Card/KTP or Passport and KITAS of the Representative

Office;e. Power of Attorney; andf. Completed NPWP Application form.

Most KPP will issue NPWP card after three (3) days from the receiving completed document.

5.4 Obtaining TDPTDP is issued by the Trade Service of the Municipal or Regency where the Representative

Office of Foreign Company is Domiciled. The following Documents are needed :

a. Copy of Representative Office of Foreign Company Permit from BKPM;b. Copy of other Technical Permit (if any);c. Copy of the SKDP from sub-district;d. Statement Letter from the building management (if domiciled in a building);e. Copy of the Identity Card/KTP (or Passport for Foreign National) of the Representative

Executive;

f. Copy of Letter of Appointment for the Representative Executive from the PrincipalCompany;g. Completed application form duly stamped and signed by the Director; andh. Power of Attorney and Identity Card (KTP) of the Proxy (if the Company Registration

executed by the third Party)

TDP will be issued after two (2) weeks and shall be valid for five (5) years. The extension ofTDP need to be done at least three (3) month before the expiry date.


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PERMIT AND LICENSES CHECKLIST

No. DOCUMENTS

Completed **

yes no

I. REPRESENTATIVE OFFICE PERMIT

1.Articles of Association of the Principal Company in englishand its amendments (if any);

:

2.Letter of Appointment from the Principal of the Company

that appoint a Representative Executive;

:

3. Copy of valid Identity Card (KTP) and Copy of validPassport for foreign national of the appointedRepresentative Executive;

:

4.Letter of Statement from the appointed RepresentativeExecutive concerning the willingness to stay, and only

work in the position as the Representative Executivewithout doing other business in Indonesia.

:

5.duly stamped Power of Attorney from the management ofthe Principal Company.

:

II. OBTAINING SKDP

1.Cop of the Representati e Office Acti it Permit from

:


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IV. OBTAINING NPWP OF COMPANY

1.Copy of Representative Office of Foreign CompanyPermit from BKPM;

:

2.Copy of SKDP from sub-district office;

:

3.Copy of the NPWP of the Representative Executive;

:

4. Copy of the Identity Card/KTP or Passport and KITAS ofthe Representative Executive;

:

5.

Power of Attorney; and:

6.Completed NPWP Application form.

:

V. OBTAINING TDP

1. Copy of Representative Office of Foreign CompanyPermit from BKPM;

:

2.Copy of other Technical Permit (if any);

:

3.Copy of the SKDP from sub-district;

:

4.Statement Letter from the building management (ifdomiciled in a building);

:

5


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SCHEME OF ESTABLISHMENT

BKPM

Sub-District

Office

TaxOffice

nd

rye

Obt i th

Correction ofApplication byOfficials atBKPM

ApplicationAccepted,Obtain Receipt

Obtaining ofRep.OfficePermit

Applyingfor SKDP

Doc II

ObtainingSKDP

Obtain theNPWP ofDirector

Apply forNPWP ofDirector Application

Form &Doc III

Apply forNPWP ofRep.Office Application

Form &Doc IV

Obtain theNPWP ofRep.Office

Apply for

TDP

Application toobtain Rep-Office permit

ApplicationForm &Doc I


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ESTIMATED TIME

Date

SP BKPM

SKDP

NPWPHeadNPWPRep Office

TDP

- Day in this table shall be working days- Started from the obtaining of Application of The Representative Office of Foreign Company Acceptance Receipt- formal process to obtain TDP supposed to be 1 month (30 days) however, some officials agreed to receive under table money to

accelerate the process