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Steps to Establishing an Office

A business permit issued by the appropriate Government agency is required to establish an office in Indonesia.  Several government agencies may be involved in issuing a business permit, depending on the nature of the business.

Foreign companies may open a representative office by submitting a business permit to the Indonesian Department of Industry and Trade. After reviewing the application to see if it meets all the requirements, the Department will issue a letter of approval and make recommendations to the Immigration Office of the Department of Justice to obtain a "stay permit" and to the Indonesian Department of Manpower for the "work permit".

This letter of approval is valid for three months and can be used by the applicant to obtain other permits, including the payment-of-guarantee money (Rp 500,000 per individual) and the annual administrative fee of Rp 50,000.  After all the requirements are fulfilled, the Department will issue a two-year business permit for the representative office.

To begin the process, the applicant must fill out a special application form accompanied by the following documents: 
     A statement indicating the appointment of a local company as
     an agent  or representative;
     A list of the personnel in the company;
     Appointment letter from the principal;
     A statement indicating the office location;
     Curriculum vitae of company personnel;
     Fiscal certificate (taxpayer number).

The application should be addressed to:

     Dra. Neneng R. Tarigan MA
     Director
     Direktorat Bina Usaha Dalam Negeri
     Ditjen Perdagangan Dalam Negeri
     Departemen Perindustrian dan Perdagangan
     Jl. M.I. Ridwan Rais No. 5
     Jakarta Pusat, Indonesia
     Tel.: 62-21-385-8189, 384-1961, ext. 1111

If a company establishes a regional representative office covering
at least two other ASEAN member countries, the applications should
be sent to:

     Dr. Rozi Munir 
     Minister and Chairman
     Capital Investment Coordinating Board (BKPM)
     (Badan Koordinasi Penanaman Modal)
     Jalan Jend. Gatot Subroto 44
     Jakarta Selatan, Indonesia

The application should be accompanied by the following documents:

     The letter of appointment;
     A list of expatriates in management and employed as experts;
     A copy of the articles of incorporation of the company.

The permit for a regional representative office will not expire
until the office is dissolved or closed.

The Department of Public Works issues business permits for
construction, engineering and consulting companies.  This
application should be addressed to:

     Drs. Moh. Charis
     Chief, Corporate Institutes Development Bureau
     Department of Public Works
     Jl. Pattimura 20
     Jakarta Selatan, Indonesia
     tel.: 62-21 720-3371 ext. 261/263

The applicant must complete a special form provided by the agency
and include the following attachments:

     A copy of the articles of incorporation;
     A description of business activities;
     A letter of appointment;
     Curriculum vitae of the appointed personnel;
     Certification by the company's home Embassy.