Andhyka CONSULTING 

INDONESIAN COMPANY FORMATION AND REGISTRATION SERVICES 

Indonesian Company Formation and Registration Services

 
 

Foreign Trade Representative Office (SIUP3A)

Business activities, procedure, requirements and application form to set up foreign trade representative office in Indonesia

 

A foreign trade representative office is established by a foreign company or a group of foreign companies to act as its/their representative in Indonesia. It may be established as either a selling agent, manufacturer’s agent, and/or purchasing agent. 


According to Article 4 of the Regulation of the Ministry of Trade No. 10 of 2006 regarding the Procedure of Issuing the License of Foreign Trade Representative Office (“Permendag No. 10/2006”), a Foreign Trade Representative Office is prohibited from conducting trades, transactions, or sales activities which represent an entire transaction from beginning to end (e.g., resulting from tender document submission, contract signing, and claims settlement).

 
 
 
 

Business Activities

The Foreign Trade Representative Office is permitted to:

 

Introduce, promote, and improve the marketing of products that manufactured overseas by Foreign Company or Groups of Foreign Companies.

Liaise and provide information and guideline to any prospective Indonesian counterpart in the matter of exportation requirements of the products.

Providing information or instruction regarding the usage and import of such products to the company or user (in this regards, the Trade Representative Office shall appoint any national company as an agent for the promoted products; and the appointment shall be based on the approval from the Foreign Company or Groups of Companies).

Conduct market research and supervise the sales of product in relation to the products’ promotion in Indonesia.

Conduct market research in relation to the product supply from Indonesia as required by the principal company as well as provide information and directives related to the export of the goods to companies in the country.

 
 

Restricted Activities of Foreign Trade Representative Office

A foreign trade representative office is prohibited to be involved in direct trading activities and sales transactions from the beginning until the completion of a project. Such commercial activities include the submission of tenders and signing of contracts.

 
 
 
 

Business License and Permits

In order to conduct its activities, the trade representative office must have a Business Licenses and Permits. The main license is Foreign Representative Office Trade Business License (Surat Izin Usaha Perwakilan Perdagangan Asing “SIUP3A”), issued by the Indonesian Investment Coordinating Board (BKPM).

 
No
License and Permits
  Issued By
 Validity period
1
Temporary Business License for Foreign Trading Company Representative (SIUP3A)
BKPM - Indonesian Investment Coordinating Board
Valid for 2 months
2
Letter of Domicile of Representative Office
Local Sub-District Office or Kelurahan
Valid for 1 year
3
NPWP - Tax Registration Number
Tax office or KPP-kantor pelayanan pajak
Not limited / until the end of business activities
4
Optional :
Visa and Working Permits If the head of the representative office is is a foreign citizen such as  RPTK, TA01, KITAS & IMTA Working permit. 

IMTA - working permits needed to be able to apply for Permanent Business License (SIUP3A) to BKPM
-
-
5
 Permanent Business License SIUP3A
BKPM - Indonesian Investment Coordinating Board
Max valid for 3 year
6
 TDP - Company Registration Certificate 
Local government city or county
Valid for 5 year

The period of validity of business license for representative office of foreign trade company (SIUP3A) is the appropriate period of validity of the letter of appointment of the foreign companies in the country, and a maximum of 3 (three) years unless otherwise determined less than three (3) years in the appointment and may be extended in accordance with the letter designation.

 
 

Additional licenses and permits if employing foreigners as the head of the foreign trade representative office or experts.

 


Every expatriate requires KITAS (Temporary Stay Permit) and IMTA (Work Permit) in order to stay and work in Indonesia.  If you are not holding an IMTA, you are not working legally in Indonesia.



 
 

Preparations to set up a foreign trade representative office in Indonesia

At the beginning of establishing Foreign Trade Representative Office, the following are important things proposed to be mentioned in the application for approval;

 

Where the location of address of the representative office in Indonesia?

Determine the location of the business is very important because any change of address must be accompanied by changes to all existing company license and of course this will take time and cost.


Business location and address of the company must be located in commercial locations such as office buildings, industrial area or other location that is can be used as a place of business or office. This means can not use the house / apartment or as the official address of the company.

Who will become the head of representative office?

Foreign trade companies must determine who will be the head of the representative office of a foreign company in Indonesia. Can be Indonesian citizens or foreign nationals.


If the company appointed a head of a representative office is a foreign citizen, he/she has to have a place to stay in Indonesia and must have a  KITAS (Temporary Stay Permit) and IMTA (Work Permit) and of course this will require an additional fee.

 

Employing foreigners or manpower plan.

Foreign Representative Office must recruit and employ at least three Indonesian national experts and / or administrative staff. This requirement is commonly referred to as "3: 1 ratio" (3 Indonesia: 1 Expatriate). So if you want to recruit and employ two foreign workers then you should employ six Indonesian workers.

Application and instructions for completing the application form.
 
 
 

Requirements and attachment to obtain a business license for a representative office of foreign trade companies (SIUP3A) in Indonesia.

 

A. Requirements and attachment for Temporary Business License (SIUP3A)

No
Requirements and Attachment
Responsibilty
1
Complete Application Form for The Establishment of a representative office for trading in Indonesia.  Application signed by the company management, duly stamped and affixed with company seal;
Client
2
Original Power of Attorney duly stamped and affixed with company seal, if the administration is not directly made by the company management, the original identity must be evidenced by attaching a copy of identification of the principal and proxy.
Client
3
Original Letter of Reference from a Commercial Attaché/Representative of the Embassy of the Republic of Indonesia in the country of origin;
Client
-
Attach several letters (original + copy) legalized by a Public Notary and Commercial Attaché or Representative of the Embassy of the Republic of Indonesia in the country of origin; 
-
4
Letter of intent to establish a foreign trade representataive office (SIUP3A) in Indonesia. This letter must be stamped and signed by the company management (Directors) on company letterhead;
Client
5
Letter of appointment from the foreign company represented to whom which will be proposed as a Head of Representative Office.  This letter must be stamped and signed by the company management (Directors) on company letterhead;
Client
6
Letter of statement concerning the willingness to stay, and only work in the position as the Head of Representative without doing other business in Indonesia. This letter must be stamped and signed by the company management (Director) on company letterhead;
Client
-
Business Plan
 
7
Representative Office Work Plan (for application for Temporary Business License for Foreign Trading Company Representative (SIUP3A) only);
Client
-
Requirements For The Head Of The Representative Office
 -
8
Foreign Citizen
Copy of valid Passport. In order to apply for KITAS (Temporary Stay Permit) and IMTA (Work Permit) to Indonesia, your passport must be valid for 12 months.

Indonesian Citizen
  • Copy of valid Identification Card/KTP 
  • Copy of Tax registration number/NPWP
Client
9
TA.00 Model Letter from the Ministry of Manpower and Transmigration (for application for Temporary Business License ((SIUP3A) only);
Client
10
Curriculum Vitae (CV) of the Head of Representative Office;
Client
11
2 (colored) 4 X 6 cm-size photographs
Client
12
Certificate of bachelor degree/or master's degree
Client
-
Requirement for Address of The Representative Office in Indonesia 
Client
13
A copy of the lease agreement or contract of office space
Location and address of the company must be located in commercial locations such as office buildings
Client
14
Original Letter from the building manager explains that the company has an office in the building
Client
-
Requirement for Permanent Business License (SIUP3A)
 
15
KITAS (Temporary Stay Permit) and IMTA (Work Permit).  If the head of the representative office is is a foreign citizen.
In order to stay and work in Indonesia, the Head of the Representative Office of Foreign Company shall have the KITAS (Temporary Stay Permit) and IMTA (Work Permit).
 
 
 
 
 
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