You might be considering establishing a representative office in Indonesia currently. Your attention could have been grabbed by the country for a long time yet you are still unsure of the country’s potential in bringing business.
This type of Company Registration In Indonesia is really a safer option if you are still at that stage at this moment. A representative office is easier and quicker to set up. It also does not involve a large amount of capital to start such an office. You do not have to present more papers to open an office: It just takes report of tax for the office space and income.
But this form of Company Registration In Indonesia does have limitation. This representative office is prohibited from generating revenues, profiting, and engaging in direct sales. A representative office is only allowed to conduct research for marketing purpose and promotion through agents. It helps manage the interest of main company without operating under its own name to generate profit. This way, you and your main company can focus on exploring opportunities and possibilities of business on Indonesian soil.
Upon getting a Company Registration In Indonesia of this type, your representative office could be managed by either a foreigner or an Indonesian (or more, for both). This manager is appointed directly by the main overseas company with tasks including handling concerns of the parent company and/or its affiliates and making preparations for the foreign direct investment company to establish and develop in Indonesia.
You can use the data and information gathered by a representative office to decide whether to open a PT PMA in Indonesia or not. Take it as a way to test the water. If it is okay for you, you can go on. If not, just disband the office and move on.