Written by Samuel S. K. on 16/07/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Below is an AI generated discussion of the topic summary. For any clarity or accuracy please contact us here.
Expanding business operations overseas presents unique challenges and opportunities for companies seeking international growth. Establishing a Representative Office (RO) in a foreign country like Indonesia can be a strategic move to gain insights into the local market, conduct market research, and explore investment opportunities.
A Representative Office (RO) serves as a vital service for foreign businesses aiming to explore local circumstances and potential investment opportunities within a host country. In the context of Indonesia, ROs are governed by the Government Regulation Number 5 Year 2021, which outlines guidelines and procedures for licensing and investment facilities. This regulatory framework, supported by Investment Coordinating Board (Badan Koordinasi Penanaman Modal / BKPM) Regulation Number 4 Year 2021, underscores the commitment of the Indonesian government to foster foreign investment and facilitate business activities for international entrepreneurs.
Establishing an RO in Indonesia holds significant importance for foreign companies venturing into the Indonesian market. The necessity of setting up an RO can be summarized based on several key points:
Determining the optimal timing to establish an RO in Indonesia is crucial for foreign companies planning to enter the market. The following considerations outline the best time to set up an RO:
To set up a representative office, the foreign companies will need to obtain NIB through Online Single Submission system (OSS). The required documents for NIB registration are as follows, as stipulated in Appendix II of BKPM Regulation Number 4 Year 2021:
For investors aiming to enter the Indonesian market through a Representative Office (RO), Putranto Alliance offers comprehensive assistance to facilitate the setup process, including:
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