Set Up a Foreign Trade Representative
in Indonesia

Step by step guide including procedures and requirements to register
a foreign company or set up a trade representative office in Indoesia

In order to establish a representative office, the foreign construction company (“BUJKA”) shall obtain a business license called the License of Representative Office for Foreign Construction Services (Izin Perwakilan Badan Usaha Jasa Konstruksi/“IUJK”).  

Busines License - What You Need to Know

The Head of The Representative Office
Representative Office of Foreign Trade Company, hereinafter referred KP3A, means an office headed by an Indonesian national or foreign national appointed by a foreign company or a foreign Joint venture at abroad as its representative office in Indonesia.

In the implementation of KP3A activity, must submit application for Representatives business licensing of Foreign Trade Company (SIUP3A).

Representative Business Licensing of Foreign Trade Company (SIUP3A), consisting of:

  1. Vocational SIUP3A; Valid for two (2) months from the date of issuance.
  2. Fixed SIUP3A; Valid for one (1) year from the date of issuance
  3. Extended SIUP3A; Valid for a period of 3 (three) years unless otherwise determined less than three (3) years in the letter of appointment and may be extended according to the period of appointment contained in the appointment letter
  4. Amended SIUP3A; and
  5. Representative Branch Office of Foreign Trading Company.


At the beginning of establishing Foreign Trade Representative Office, the following are important things proposed to be mentioned in the application for approval;

Where the location of address of the representative office in Indonesia? 
Determine the location of the business is very important because any change of address must be accompanied by changes to all existing company license and of course this will take time and cost.

Business location and address of the company must be located in commercial locations such as office buildings, industrial area or other location that is can be used as a place of business or office. This means can not use the house / apartment or as the official address of the company.

Who will become the head of representative office?
Foreign trade companies must determine who will be the head of the representative office of a foreign company in Indonesia. Can be Indonesian citizens or foreign nationals. If the company appointed a head of a representative office is a foreign citizen, he/she has to have a place to stay in Indonesia and must have a KITAS (Temporary Stay Permit) and IMTA (Work Permit) and of course this will require an additional fee.

Employing foreigners or manpower plan.
Foreign Representative Office must recruit and employ at least three Indonesian national experts and / or administrative staff. This requirement is commonly referred to as "3: 1 ratio" (3 Indonesia: 1 Expatriate). So if you want to recruit and employ two foreign workers then you should employ six Indonesian workers.​


Business licenses and permits that must be owned by a Foreign Construction Representative Office in Indonesia are as follows;
  1. Legal Status of Foreign Construction Company
    Foreign company must obtain a recommendation letter from the embassy of the country of origin in Indonesia stating that the BUJKA concerned is a legally registered and reputable business entity. It is very necessary as the legal status of BUJKA in Indonesia.
  2. Letter of Domicile of Representative Office
    Issued by Local Sub-District Office or Kelurahan in accordance with the office location and address of the company in Indonesia.
  3. NPWP - Tax Registration Number
    Obtain a Taxpayer Identification Number (NPWP) of the BUJKA Representative Office concerned issued by the tax office in Indonesia. This is required before or after the process of certification and registration
  4. Optional; Visa and Working Permits
    Additional licenses and permits if employing foreigners as the head of the Foreign Construction Representative Office or experts.

Certification and Registration of Construction Company

  1. Expertise Certificate (Sertifikat Keahlian / SKA)
    Professionals, such as architects and engineers, need to have a professional certificate from the Construction Services Development Board (Lembaga Pengembangan Jasa Konstruksi/LPJK)
  2. Registration as a member of association of construction company
    Foreign construction representative office (BUJKA) in Indonesia must be a member of one of the associations of the construction company that is accredited or registered in LPJKN.
  3. Business Entity Certificate (Sertifikat Badan Usaha or SBU)
    SBU is given to construction companies as a construction contractor or construction consultant in accordance with the classification and qualification of construction services issued by LPJKN
  4. License of Foreign Construction Representative Office (BUJKA or IUJK)
    After obtaining the SBU issued by LPJKN, BUJKA can apply for a construction services business license (IUJK) in accordance with the classification and qualifications contained in the SBU.
The period of validity of business license (IUJK) for representative office of Foreign Construction Company (BUJKA) is the appropriate period of validity of Business Entity Certificate (SBU), and a maximum of 3 (three) years from the date issued . 

Preparations and step by step guide to set up a Foreign Construction Representative Office in Indonesia