Indonesia · Representative office
KP3A trade representative office in Indonesia
A KP3A is the representative office for a foreign trading company. It can promote your products, research the market, and act as your selling, buying, or manufacturing agent, as long as it does not invoice or sell directly itself.
Overview
What a KP3A is
A KP3A, the Kantor Perwakilan Perusahaan Perdagangan Asing, is the representative office for a foreign trading company in Indonesia. It runs on a foreign trade representative license (SIUP3A) and, since BKPM Regulation 5/2025, an NIB valid for three years. It suits a foreign manufacturer or trading company that wants to promote its goods and build a network of agents and distributors before forming a company.
Like every representative office, a KP3A cannot earn income or invoice in Indonesia. The difference from a general KPPA is focus: a KP3A is built around trade support, and it can open branch offices in provincial capitals and regencies, which a KPPA cannot.
The three roles
What a KP3A can act as
A SIUP3A is issued for one or more of three agent roles.
| Agent role | What it does |
|---|---|
| Selling agent | Promotes, introduces, and markets the parent's goods, and connects the parent with potential buyers. |
| Buying agent | Sources and procures goods for export, supervises and monitors suppliers, and runs quality control. |
| Manufacturing agent | Carries out market surveys and liaises with stakeholders on the parent's behalf. |
Activities
What a KP3A can and cannot do
Trade support, not trade itself.
It can
- Promote, introduce, and market the parent's goods in Indonesia
- Research the market and monitor distributors
- Open branch offices in provincial capitals and regencies
- Hire local and foreign staff and sponsor work permits
It cannot
- Issue invoices or earn income in Indonesia
- Sell or trade directly, or sign sales contracts
- Submit tenders or settle claims
- Hold transactions in its own name, rather than the parent's
To actually import, sell, or distribute in Indonesia, you need a foreign-owned company (PT PMA), not a KP3A. Many companies start with a KP3A and move to a PT PMA once the market is proven. Talk to our team about the move.
Requirements
What you need to open a KP3A
Conditions sit on the parent as much as the office.
From the parent
- A parent company that is a legal entity outside Indonesia
- A main business activity in trading
- Standing as the principal of the goods, not a broker
- Letters of appointment, intent, and statement
In Indonesia
- A Chief Representative Officer (CRO), Indonesian or a resident foreigner
- A commercial office address, which need not be in the capital
- A SIUP3A trade license and an NIB
License types
The SIUP3A validity tiers
The license is issued in stages as the office settles in.
| SIUP3A type | Valid for |
|---|---|
| Temporary SIUP3A | 2 months from issue |
| Head office SIUP3A | Up to 3 years, or as stated in the appointment letter |
| Branch office SIUP3A | Up to 3 years |
The process
How we set up your KP3A
Four stages, from fit to a working office.
Confirm the fit
We check that a KP3A matches your trade plans, rather than a KPPA or a PT PMA.
Prepare and legalise documents
We prepare the appointment, intent, and statement letters and arrange legalisation and translation.
SIUP3A and NIB via OSS
We register the office through OSS and obtain your SIUP3A and NIB.
Tax ID and ready to operate
We register your NPWP and help with banking and work permits for foreign staff.
Compliance
Tax and reporting for a KP3A
No income, but real reporting.
- An NIB valid for three years, with investment activity reports (LKPM) and an annual activity report through OSS
- Withholding tax on employee salaries, office rent, and other administrative expenses, even with no income
- BPJS Ketenagakerjaan registration for the social security of employees once the office has more than ten staff
Types of office
Types of representative office in Indonesia
Indonesia recognizes several representative offices, each tied to a different kind of parent company. Two niche types also exist: KP3A PMSE for foreign e-commerce, and KPJPTLA for electricity support services.
General office
KPPA general office
The general representative office for liaison, coordination, and market research before you commit to a company.
KPPA officeConstruction
BUJKA construction office
The representative office for large foreign construction firms working on major Indonesian projects.
BUJKA officeWhen you need to trade
PT PMA company
A foreign-owned company, the vehicle for earning revenue, invoicing, and selling in Indonesia.
Company registrationCommon questions
Common questions
What foreign companies ask most.
What is a KP3A?
A KP3A is the representative office of a foreign trading company in Indonesia. It promotes and markets the parent's goods and acts as a selling, buying, or manufacturing agent, but cannot invoice or trade directly.
What is the difference between a KP3A and a KPPA?
A KPPA is a general representative office for liaison and market research. A KP3A is built specifically for trade support, and unlike a KPPA it can open branch offices in provincial capitals and regencies.
Can a KP3A sell goods or issue invoices?
No. A KP3A cannot sell directly, issue invoices, sign sales contracts, or submit tenders. All transactions stay under the parent company's name. To trade for real, you need a PT PMA.
Does the Chief Representative have to be Indonesian?
No. The CRO can be an Indonesian national or a foreigner, as long as they are resident in Indonesia. A foreign CRO can be sponsored for a work permit after the office is established.
Is there a capital requirement for a KP3A?
No. A KP3A has no shareholders and no paid-up capital requirement. The conditions sit on the parent company's standing and business activity instead.
How long does a SIUP3A last?
A temporary SIUP3A runs for two months, while head office and branch office licenses run up to three years. The office's NIB is also valid for three years and renewable.
On the ground in Jakarta
Talk to our Indonesia team
Tell us what you trade and where you want to sell. Our Jakarta team will confirm whether a KP3A fits, set it up through OSS, and tell you when it is time to move to a PT PMA.
Phone+62 21 2205 7930
OfficeSatrio Tower, Floor 6, Unit 5
RT.7/RW.2, Kuningan
Jakarta 12950, Indonesia
RT.7/RW.2, Kuningan
Jakarta 12950, Indonesia