A foreign company may establish a representative office in Indonesia in one of province capitals. Its activity is limited to supervising and coordinating the business of its principal and branches. This office is not allowed to make any business transaction with companies or persons in Indonesia either for export or import or domestic trading. The representative office can :
- Obtain work permits for expatriate managers.
- Obtain multiple entry visas for its expatriate personnel as well as exemption from exit-tax (SKFLN).
The representative office is led by one or more foreign or Indonesian citizens who are appointed by a foreign company or joint foreign companies as their representatives with the intention of :
- Handling the company or its affiliates concerns, and or
- Preparing the establishment and development of foreign direct investment companies, in Indonesia or in other countries and Indonesia.