KPPA (Kantor Perwakilan Perusahaan Asing) and KP3A (Kantor Perwakilan Perusahaan Perdagangan Asing) is A representative office established by a foreign company or several foreign companies outside the territory of Indonesia with the aim of managing the interests of the company or affiliated companies in Indonesia and/or in other countries and/or preparing for the establishment and business development of a Foreign Investment Company (“PMA”) in Indonesia and/or in other countries.
From this definition, it can be concluded that KPPA’s activities are solely managing the interests of its companies located abroad without being permitted to carry out business activities.
Provisions and Limitations from KPPA/KP3A:
- as supervisor, liaison, coordinator, and managing the interests of the company or its affiliated companies.
- prepare the establishment and business development of PMA companies in Indonesia or in other countries and Indonesia.
- located in an office building in the provincial capital.
- not seeking any income from sources in Indonesia, including not being allowed to carry out activities or carry out any engagements/transactions for the sale and purchase of commercial goods or services with companies or individuals in the country; And
- not participate in any form in the management of a company, subsidiary or branch company in Indonesia.