1.      The business activities of a general representative office registration are limited to market research, promotion, coordination, and assisting foreign companies in conducting economic activities.

2.      Here are the precautions when registering a general representative office:

·       The functions of the representative office are limited to market research, finding partners/local suppliers, and preparing for the registration of an Indonesian company.

·       For some listed companies and state-owned or central state-owned enterprises, there are significant restrictions on establishing branch offices. It is recommended to initially establish a representative office.

·       Some companies localize their strategy by finding local agents and authorizing them to handle sales. It is also recommended to establish a representative office under this model.

·       The representative office is not allowed to engage in any business activities for generating economic income.

·       It cannot sign contracts (if necessary, contracts must be signed by the parent company).

·       It cannot receive payments or issue invoices.

·       The chief representative cannot simultaneously hold a management position in another Indonesian company.

·       The chief representative can apply for a temporary stay permit (KITAS) (Chief Representative or Assistant Chief Representative – work visa).

·       A bank account can be opened, but it is limited to internal operational purposes, such as paying employee salaries, operating expenses, and office rent.

3.      Before registering a representative office, you need to apply for Hague Apostille Certification and a letter of recommendation from the Indonesian Embassy. The following are the materials required for Hague Apostille certification:

·       Articles of Association (AOA) of the parent company

·       Business License (BL) of the parent company

·       Letter of Appointment (LOA) from the parent company for the Chief Representative in Indonesia

·       Letter of Intent (LOI) from the parent company regarding the establishment of the representative office in Indonesia

·       Letter of Statement (LOS) from the Chief Representative