REPRESENTATIVE OFFICE REQUIREMENTS
REQUIREMENTS IN OBTAINING LICENSE FOR FOREIGN TRADE REPRESENTATIVE OFFICE

REQUIREMENTS IN OBTAINING LICENSE FOR FOREIGN TRADE REPRESENTATIVE OFFICE

In accordance with the Minister of Industry and Trade Decree No.: 402/MPP/Kep/11/1997. All foreign Trade Companies or Joint Enterprise (Association) of foreign companies that are willing to open their representative office in Indonesia, are required to obtain a license SIUP3A (Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing) from the Ministry of Industry and Trade of the Republic of Indonesia.

Only Foreign individuals or Indonesian individuals with high educational background and experience are eligible to manage the Representative Office.

The function of this individual is to serve as Head of Representative Office or Assistant to Representative and the educational background must be at least university graduated or equal to university graduate with 3 years experience in the field where she/he will be posted.

The Representative Office can act as selling agent and/or manufacturing agent and/or buying agent of their principal. In which the detail of their activities should be applied in accordance with article 3, The Minister of Industry and Trade Decree No. 402/MPP/Kep/11/1997 that is for the promotion and market research of import or export products.

Foreign expatriate who is intended to work at the Representative Office either as Head of Representative or as Assistant to representative are subject to The Minister of Man Power Decree No. Kep 682/MEN/85 regarding his/her working permit.

A. For Foreign Individual the requirements are as the following :

I- The foreign applicant has to submit.

1. Letter of Intent from the Foreign Company or the Association of the Foreign Companies abroad which declares its intention to appoint a representative in Indonesia.

2. The A Letter of Appointment which is made by the above company or association should 
   contain at least :
   -  The name of foreign citizen or Indonesian individual to be appointed as representative
   -  The field of their activities / responsibilities as representative or assistant representative
   -  The validity of their appointment.

3. The Letter of Statement from the applicant declaring that the applicant will refrain from any activities other than activities other than activities as stipulated at article 3 of the Minister of Industry and Trade decree No. 402/MPP/Kep/11/1997.
   
   The Letter of Appointment as well as the Letter of Intent and the Letter of Statement should be acknowledged or legalized by the local Chamber of Commerce or the Notary Public and The Indonesian Embassy/Consulate where the principal is located.
   

4. The Letter of Reference from the Representative/Embassy of the Republic of Indonesia. In the country where the head office of the said company or association is domiciled and contains the name of the company, date of establishment, corporate form, addresses of head office and branch office, lines of business, name of the representative and the validity of the appointment.

5. The working program of the Representative Office or Branch of the Representative office in Indonesia.

6. Curriculum vitae (Resume) or personnel record of the appointee, or the representative which describe at least the date of birth, nationality, education and working experience.

7. With the above documents (1) to (6) the applicant could proceed to the Ministry of Man Power attn. Directorate for the Replacement of Man Power Internal Affairs (Direktorat Penempatan Tenaga Kerja Dalam Negeri) in order to get a letter model TA-00

8. With document (1) to (7), the applicant must go to The Directorate for Domestic Business Development (Direktorat Bina Usaha Dalam Negeri) and fill a special form prepared by this Directorate.

9. The Applicant form should be properly completed and signed and is available free of charge at 
   the Ministry of Industry and Trade attn. The Directorate for Domestic Business Development.

10. A copy of the passport and two (2) photographs (4 x 6 cm) of the applicant should be attached together with documents (1) to (7) send to the Directorate for Domestic Business Development.

II- By fulfilling the requirements as referred to section I, above, the applicant concerned shall obtain

1. A Letter of Approval on the appointment of such representative which shall be valid for the period of three months as from the date of the issuance and such letter shall not constitute the permit of the representative; and

2. A Letter of Recommendation to obtain a working permit of the said representative.
   
   Within three months, the applicant concerned should fulfill the following requirements:
   a. Business site reference from the Regional office of the Ministry of Industry and Trade where
       the representative office is to be located.
   b. Business site permit issued by the Ministry of Home Affairs attn. Local/Provincial Government
       (regional administration).
   c. The Registration Number of Taxpayer (NPWP) from the Indonesian Tax Office.
   d. Working Permit (IKTA) from the Ministry of Man Power.
   e. Temporary Stay Permit (KIMS) from the Ministry of Justice c/q The Directorate General of
       Immigration.

III- After fulfilling the requirements as referred under section II points (1) to (5), above, the holder of the Letter of Approval, is instructed to pay to LPP (Lembaga Penyeluran Perdagangan) account No. 690067.006 to Bank Negara Indonesia 1946 Jakarta Kota.

IV- After paying the above deposit, the applicant holding the Letter of Approval will obtain a letter
     of Permit (Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing/a license). 

By which the new Representative Office of Foreign Trade Company shall begin its activities effective from the date of the issuance of the license. The license (Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing) will be valid until the letter of appointment from the foreign company or group of foreign companies abroad is revoked.

1. Kindly take note, that the Representative Office can start its activities only after having the permit (Surat Izin Usaha Perwakilan Perusahaan Perdagangan Asing)

2. For every present of each expatriate the representative office concern is obliged to employ 3 Indonesian, individuals as experts or administrators work at the office

 B. Indonesian individuals working as head or assistant to representative are subject to requirements as referred under section I (1) to (6) and also request to submit their ID and photographs (4 x 6).

If the first requirements is completed, they may obtain a temporary license which allows them to obtain among others the NPWP from The District Office of The Directorate General of Taxes. As well as the Business site Permit from the Provincial Government from which then they may obtain the permanent license (SUP3A) from the Ministry of Industry and Trade.

C. Foreign Assistant to Representative is compelled to fulfill requirements as referred at section I (1) to (9) not including (4) and (5).


Note: All documents such as Letter of Intent, Letter of Appointment, Letter of Statement, should be legalized by Notary Public as well as the Indonesian Embassy/Consulate abroad.

PT. BINKA CONSULTING
Jl. Danau Sunter Utara Blok G2/24, Sunter Podomoro, Jakarta - 14350 PO.BOX 4375 JKT
Telp: (021) 6405416, 64054017, 65300481, 6505522 Fax:  (021) 6401095
Email: chand@binka.co.id

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