Indonesia · Representative office
KPPA representative office in Indonesia
A KPPA is the general representative office a foreign company opens to establish a presence in Indonesia without trading. It cannot earn income, but it can hire staff, sponsor work permits, and do the groundwork before you commit to a PT PMA.
Overview
What a KPPA is
A KPPA, the Kantor Perwakilan Perusahaan Asing, is the general representative office a foreign company can open in Indonesia. It exists to represent and support its overseas parent through liaison, coordination, promotion, and market research, rather than doing business in its own right. For many companies it is the lightest way to put a compliant, staffed presence on the ground before committing to a full company.
Representative offices are governed by the Ministry of Investment (BKPM) under BKPM Regulation 5/2025. Since that regulation took effect in October 2025, every representative office must hold a Business Identification Number (NIB), valid for three years and renewable, and report its activity and investment through the OSS system.
What it can do
What a KPPA can do
Plenty, as long as none of it generates income in Indonesia.
Represent the parent
Act as the liaison, coordinator, and supervisor for the parent company and its affiliates in Indonesia.
Research the market
Study demand, run feasibility studies, and monitor sales and marketing before you set up a PT PMA.
Hire and sponsor staff
Employ local and foreign staff. A foreign Chief of Representative Office can be sponsored for a work permit and KITAS.
Handle banking and back office
Open a local bank account and run back-office work such as accounting, data entry, and payroll for the parent.
Restrictions
What a KPPA cannot do
The line it cannot cross is income.
- Generate income or revenue from sources inside Indonesia
- Issue invoices or sign sales contracts
- Engage in trading, sales, or any commercial transaction
- Own land or property
- Take part in the management of an Indonesian company, subsidiary, or branch
If you need to earn revenue in Indonesia, invoice clients, or sign contracts, the right vehicle is a foreign-owned company (PT PMA), not a representative office. Talk to our team about which fits your plans.
Requirements
What you need to open a KPPA
No capital, but a few firm conditions.
From the parent
- A parent company that is a legal entity established outside Indonesia
- A letter of appointment for the representative, legalised by the Indonesian embassy
- Articles of association, translated into Indonesian where required
In Indonesia
- A Chief of Representative Office (CRO), Indonesian or a resident foreigner
- A dedicated commercial office address in the capital city of an Indonesian province
- No minimum capital requirement
The process
How we set up your KPPA
Four stages, from fit to a working office.
Confirm the fit
We check that a KPPA matches your plans, rather than a KP3A or a PT PMA, before anything is filed.
Prepare and legalise documents
We prepare the appointment letter and parent documents and arrange embassy legalisation and translation.
NIB via OSS
We register your KPPA through OSS and obtain your NIB, valid for three years.
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 KPPA
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.
Trade
KP3A trade office
The representative office for a foreign trading company, acting as your selling, buying, or manufacturing agent.
KP3A 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 KPPA?
A KPPA is the general representative office of a foreign company in Indonesia. It represents and supports its overseas parent through liaison and market research, and is not allowed to earn income or trade.
Can a KPPA earn income or issue invoices?
No. A KPPA cannot generate revenue in Indonesia, issue invoices, or sign sales contracts. Any commercial activity has to run through a PT PMA instead.
Where must a KPPA be located?
A KPPA must operate from a dedicated commercial office address in the capital city of an Indonesian province. It cannot open branch offices the way a KP3A can.
Can a KPPA hire and sponsor foreign employees?
Yes. A KPPA can employ both local and foreign staff, and a foreign Chief of Representative Office can be sponsored for a work permit and a KITAS once the office is established.
Is there a minimum capital requirement?
No. There is no minimum paid-up capital for a KPPA, which is one reason it is a low-risk way to test the market before forming a company.
How long is a KPPA valid?
Under BKPM Regulation 5/2025 the office runs on an NIB valid for three years, which can be renewed. The office also files regular activity and investment reports through OSS.
On the ground in Jakarta
Talk to our Indonesia team
Tell us what you plan to do in Indonesia. Our Jakarta team will confirm whether a KPPA fits, set it up through OSS, and sponsor the work permits your team needs.
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