Indonesia - Establishing an Office Indonesia - Establishing an Office
Before establishing an office in Indonesia, investors need to think whether using a local partner would be more effective in penetrating the local market. A foreign company can also establish a representative office. Three of the most common types of representative offices in Indonesia are: (1) Foreign Representative Office (Kantor Perwakilan Perusahaan Asing); (2) Foreign Trade Representative Office (Perwakilan Perusahaan Perdagangan Asing); and (3) Foreign Construction Services Representative Office.
The Indonesian Investment Coordinating Board (BKPM) provides “One Stop Services” for certain types of direct investment approvals from both domestic and foreign investors. A Foreign Company must establish itself as a legal entity in Indonesia, often called a Foreign Investment Company, or “PT. Penanaman Modal Asing (PT. PMA).”
A Foreign Company that wishes to access the Indonesian market may also establish itself as a Representative Office and not a branch office. Some business sectors require a foreign company to establish a local partner in which the foreign company is allowed up to a certain percentage of ownership depending on the sector. U.S. companies that are interested in establishing a legal entity in Indonesia should first check the latest Negative Investment List, which was released May 24, 2016 as Government Regulation No. 44/2016. The revision of the Negative Investment List opens some previously-closed sectors to foreign investors. To learn about businesses that are closed or conditionally open for investment go to www.bkpm.go.id.
To find out requirements in setting up an office in Indonesia, please contact BKPM’s representative office in the U.S.:
Rahardjo Siswohartono (Anton), Director
Indonesia Investment Promotion Center (IIPC) New York
370 Lexington Avenue, Suite 1903
New York, NY 10017
T : +1 646 885 6600
Fax: (646) 885-6601
Indonesian Investment Coordinating Board
Jl. Jend. Gatot Subroto No. 44
Tel: (62-21) 525-2008
Fax: (62-21) 520-2050