Legal Aspects of Doing Business in Indonesia - Singapore ...

8. SETTING UP A REPRESENTATIVE OFFICE ININDONESIA(A) In the early stages of exploring the Indonesian market, a Singaporemanufacturing, trading or service company may wish to consider establishing aforeign representative office in Indonesia, by obtaining a business permit from therelevant Indonesian authority. The Chief Representative of the representativeoffice can be an Indonesian national or an expatriate. Under Indonesian law, aforeign representative office cannot conduct sales but it may promote the productsor services of the Singapore head office. Any orders solicited by therepresentative office must be referred back to the Singapore head office and allinvoices must be issued by the Singapore head office.(B) It would take approximately two to three weeks to set up a Representative Officethrough the Investment Coordinating Board (“BKPM”).Note: Recent transfer of authority from Department of Trade to BKPM. UnderBKPM Regulation 5/2013, BKPM approval for a Rep Office is valid for a maximumof 5 years.Angeline Suparto Law CorporationAll Rights Reserved11