GENERAL PROCEDURE

FOR ESTABLISHMENT OF REPRESENTATIVE OFFICE OF FOREIGN COMPANY

1. OBJECTIVES
The purpose and objective of this procedure is to provide sufficient information on the procedure of and documents needed for the establishment of Representative Office of Foreign Company under BKPM authorization in Indonesia.

2. SCOPE
The procedure set forth in this document is based on relevant regulations and common practices in Indonesian governmental institution with a note that said government institution in a different region may have a different policy concerning the required documents. These procedure shall only apply to the establishment process of a Representative Office of Foreign Company under BKPM authorization in Indonesia started from the Application for Representative Office establishment to Investment Coordinating Board (BKPM) to the obtaining of Company Register (TDP) of the authorized Trade Service. This documents do not describes the processes after the obtaining of TDP, the processes of the Representative Office establishment or processes in obtaining technical licenses or permits.

3. ABBREVIATION
The following abbreviations shall be interpreted as follows: 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. KPPA BKPM SPPM NPWP KPP SKDP TDP (Kantor Perwakilan Perusahaan Asing) (Badan Koordinasi Penanaman Modal) (Surat Pendaftaran Penanaman Modal) (Nomor Pokok Wajib Pajak) (Kantor Pelayanan Pajak) (Surat Keterangan Domisili Perusahaan) (Tanda Daftar Perusahaan) : Representative Office : Investment Coordinating Board : Investment Registration Certificate : Taxpayers Number : Tax Office : Domicile Certificate : Company Register

4. REFERENCE
4.1. Law Number 3 of the year 1982 concerning the Compulsory Company Registration; 4.2. Presidential Decree Number 90 of the year 2000 concerning Representative Office of Foreign Company; 4.3. Head of BKPM Decree Number 12 of the year 2009 concerning Investment Application Guidelines and Procedure; 4.4. Minister of Trade Number 37/M-DAG/PER/9/2007 concerning the Implementation of the Company Register; 4.5. Directorate General of Taxation Decree number 44/PJ/2008 concerning the Procedure of Taxpayers Number Registration and/or the Taxable Entrepreneur Confirmation, the Change and Transfer of Taxable Entreperneurs and/or Taxpayers Data and its amendments.

5. PROCEDURES
5.1 Application for Representative Office of Foreign Company Establishment The establishment of Representative Office of Foreign Company can be done in the BKPM by 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 the willingness to stay, and only work in the position as the Representative Executive without doing 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) working days after the obtaining of the completed application receipt by BKPM official with copies send to : a. b. c. d. Minister of Finance; Minister of Trade; Minister of Manpower and Transmigration; Head of the Representative of Republic of Indonesia in the origin country of the Principal Company; e. Governor/Regent/Major. 5.2 Obtaining SKDP SKDP is issued by the sub-district where the Representative Office of Foreign Company is domiciled. The SKDP is needed for the obtaining of NPWP and TDP of the Representative Office of Foreign Company and mostly be valid for one (1) year. The documents needed for the obtaining of SKDP are as follows : a. Copy of the Representative Office of Foreign Company Permit from BKPM b. Domicile Letter from the Building Management (if located in Office Building) c. Information of the Head of the Representative Office d. Identity Card/KTP (or Passport for non-Indonesian) of the Representative Executive of the Company e. Power of Attorney (if such application executed by third party) Some sub-district might require more documents. The SKDP will be issued in approximately 4 (four) working days. 5.3 Obtaining of NPWP NPWP is issued by the KPP in the region where the Representative Office of Foreign Company is domiciled. To obtain such NPWP, the NPWP of the Representative Executive is needed. The following documents are required : 5.3.1 For obtaining the NPWP of the member of the Representative Executive a. Identity Card (KTP) or Passport and KITAS of the applying Executive; b. Power of Attorney (if such application is executed by third party; and c. Completed NPWP application form.

5.3.2

For Obtaining the NPWP of the Repreentative Office of Foreign Company a. 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; and f. Completed NPWP Application form.

Most KPP will issue NPWP card after three (3) days from the receiving completed document. 5.4 Obtaining TDP TDP 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. b. c. d. e. Copy of Representative Office of Foreign Company Permit from BKPM; Copy of other Technical Permit (if any); Copy of the SKDP from sub-district; Statement Letter from the building management (if domiciled in a building); 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 Principal Company; g. Completed application form duly stamped and signed by the Director; and h. 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 of TDP need to be done at least three (3) month before the expiry date.

PERMIT AND LICENSES CHECKLIST

No. I. 1.

DOCUMENTS

Completed ** yes no

REPRESENTATIVE OFFICE PERMIT Articles of Association of the Principal Company in english and its amendments (if any); Letter of Appointment from the Principal of the Company that appoint a Representative Executive; Copy of valid Identity Card (KTP) and Copy of valid Passport for foreign national of the appointed Representative Executive; Letter of Statement from the appointed Representative Executive concerning the willingness to stay, and only work in the position as the Representative Executive without doing other business in Indonesia. :

2.

3.

4.

5.

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

II. OBTAINING SKDP 1. Copy of the Representative Office Activity Permit from BKPM Domicile Letter from the Building Management (if located in Office Building) Information of the Head of the Representative Office Identity Card/KTP (or Passport for non-Indonesian) of the Representative Executive of the Company Power of Attorney (if such application executed by third party) :

2.

3. 4.

: :

5.

III. OBTAINING NPWP OF REPRESENTATIVE EXECUTIVE 1. Identity Card (KTP) or Passport and KITAS of the applying Executive; Power of Attorney; and Completed NPWP application form :

2. 3.

: :

IV. OBTAINING NPWP OF COMPANY 1. Copy of Representative Office of Foreign Company Permit from BKPM; Copy of SKDP from sub-district office; Copy of the NPWP of the Representative Executive; Copy of the Identity Card/KTP or Passport and KITAS of the Representative Executive; Power of Attorney; and Completed NPWP Application form. :

2. 3. 4. 5. 6.

: : : : :

V. OBTAINING TDP 1. 2. Copy of other Technical Permit (if any); 3. 4. Copy of the SKDP from sub-district; Statement Letter from the building management (if domiciled in a building); Copy of the Identity Card/KTP (or Passport for foreign national) of the Representative Executive; Copy of Letter of Appointment for the Representative Executive from the Principal Company; Completed application form duly stamped and signed by the Representative Executive; and Power of Attorney and Identity Card/KTP of the Proxy (if the Company Registration executed by the third Party) : : Copy of Representative Office of Foreign Company Permit from BKPM; : :

5.

6.

7.

8.

SCHEME OF ESTABLISHMENT

BKPM

Application to obtain RepOffice permit

Application Form & Doc I

Correction of Application by Officials at BKPM

Application Accepted, Obtain Receipt

Obtaining of Rep.Office Permit

Sub-District Office

Obtaining SKDP

Applying for SKDP

Doc II

Tax Office

Obtain the NPWP of Rep. Office

Apply for NPWP of

Rep.Office
Application Form & Doc IV

Obtain the NPWP of Director

Apply for NPWP of Director

Application Form & Doc III

Trade and Industry Service

Apply for TDP

Application Form & Doc V

Obtain the TDP

ESTIMATED TIME Date SP BKPM SKDP NPWP Head NPWP Rep 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