If you’re looking to expand your business into Indonesia without establishing a new legal entity, a representative office could be the ideal solution. But what exactly is a representative office, and how can it benefit your company? Let’s break it down.
What Is a Representative Office?
A representative office is a liaison office set up by a foreign company to operate in Indonesia. While it is not permitted to conduct commercial activities such as selling products or generating revenue, it serves as a base for coordination, market research, and business promotion.
Benefits of Establishing a Representative Office
Cost- and Time Efficient
No need to deal with the legal complexities of setting up a local company or investing large capital for operations.
More Effective Market Research
Allows you to study the Indonesian market before committing to larger investments.
Build Business Networks
Makes it easier to connect with potential clients or partners in Indonesia.
Stronger Brand Awareness
Boosts your brand presence in the local market without needing to sell directly.
Requirements and Process to Set Up a Representative Office in Indonesia
To establish a rep office in Indonesia, here are the basic requirements:
- A letter of appointment from the parent company abroad
- Approval from the Indonesian Investment Coordinating Board (BKPM)
- A valid office address that complies with local regulations
- No direct selling or commercial transactions
The setup process is relatively quick, so your company can start its representation activities in Indonesia promptly.
As outlined above, a representative office is an excellent option for foreign companies looking to explore the Indonesian market without going through the full commercial licensing process. With a rep office, you can build a local network, strengthen brand visibility, and assess market potential before making larger investments. It also adds a level of professionalism and credibility in the eyes of prospective partners or clients. Compared to remote communication, having a physical presence in Indonesia signals your company’s serious intent—an added value for long-term business relationships.
Interested in setting up a representative office in Indonesia?
You can establish your representative office with MESO Indonesia by contacting our call center at +62 21-2789-9919 or WhatsApp us at +62 812-1315-4189. We also offer consultations for setting up CVs, PTs, and PMAs and obtaining prestigious business addresses.
