Representative Office
A foothold in Indonesia without a full company. A representative office lets a foreign business set up a legal presence for research, liaison and promotion while it decides whether to commit to a PT PMA.
Overview
About the representative office
A representative office, known locally as a KPPA, is a licensed presence for a foreign parent company. It can research the market, build relationships, promote the parent products and coordinate with partners, but it cannot sign sales contracts, invoice clients or earn revenue in Indonesia.
It is the low-commitment way in. Many companies use it to test demand, hire a small local team and understand the rules before setting up a PT PMA. There are variations for trade, known as KP3A, and for construction, known as BUJKA, depending on the sector.
Who it's for
Foreign companies testing the Indonesian market
Businesses that need a local liaison and promotion base
Groups coordinating partners or a project on the ground
Companies not yet ready to form a PT PMA
Quick facts
Key details at a glance
Entity type
Representative office (KPPA)
Main uses
Research, liaison, promotion
Office
Physical or virtual address
Revenue
Not permitted
Variations
KP3A trade, BUJKA construction
Best for
Market entry before a PT PMA
Requirements
What is usually required
Parent company documents
Incorporation papers and standing of the overseas company.
Letter of appointment
Appointing the office and its chief representative.
Chief representative
A named person to run the office, local or foreign.
Registered address
A domicile in Indonesia, which can be a virtual office.
How ILA helps
Handled end to end
Scope and confirm
We confirm the right structure for your goals and flag anything that could slow the licensing down.
Prepare documents
We prepare and legalise the parent company papers, appointments and forms so nothing bounces back.
File and license
We lodge the application, deal with the ministry and the OSS system and follow it through to approval.
Set up and comply
We help with the address, tax registration and the reporting that keeps the office in good standing.
Rules and requirements change. Indonesian company, licensing and tax rules are updated regularly, so treat this as a guide and talk to our team for what applies to your case today.
Related services
Other options you might consider
PT PMA
Company Registration
Ready to trade and invoice? Set up a PT PMA.
VO
Virtual Office
Just need a registered address? A virtual office may be enough.
CLOSE
Company Dissolution
Winding an entity down instead? We handle that too.
FAQ
Frequently Asked Questions
Can a representative office earn revenue in Indonesia?
No. A representative office (KPPA) can research the market, build relationships, promote the parent company's products and coordinate with partners, but it cannot sign sales contracts, invoice clients or earn revenue in Indonesia. If you need to trade or invoice locally, a PT PMA is the structure to look at.
Does the chief representative have to be Indonesian?
No. The chief representative is a named person appointed to run the office, and can be local or foreign. The appointment is made through a letter of appointment from the parent company, which ILA prepares and legalises along with the parent company's other papers.
Do I need a physical office for a representative office in Indonesia?
No. The office needs an Indonesian registered address, which can be a physical office or a virtual office. If a registered address is all you need at this stage, ILA's Virtual Office service can provide it, and ILA helps arrange the address as part of setup.
What is the difference between a KPPA, KP3A and BUJKA?
A KPPA is a licensed presence in Indonesia for a foreign parent company. The KP3A is the variation for trade and the BUJKA is the variation for construction. ILA confirms which structure fits your activity and flags potential licensing delays before you file.
Thinking about a representative office?
Tell us what you want to achieve in Indonesia and we’ll confirm whether a rep office or a PT PMA fits best.
