For Discussion Purposes Only
Table of Comparison
Foreign Representative Office (KPPA) and Foreign Trade Representative Office (KP3A)
Subject Matters
Allowed Activity
Location of the office
Duration of the office establishment
KPPA
Take care of the interests of the company
or its affiliated companies and / or
prepare for the establishment and
development of the business of foreign
investment companies in Indonesia and
other countries.
Located in nation’s capital (Jakarta) and Can be Located in Province capital
domicile in office building.
Can only be established for 3 years and
can be extended twice for 1 year.
KP3A
This type of Representative Office
(RO) can be established as Selling
Agent (Promotion and Market
research) and/or Manufactures Agent
and/or Buying Agent.
However, they are prohibited to
conduct trading activity and sales
transaction, include tender application,
signing a contract, invoicing and etc.
and district/city in all regions of
Indonesia.
 Temporary Business License
Valid for 2 months
 Permanent Business License Valid
 For Discussion Purposes Only
Subject Matters KPPA
After that, the Representative Office can
extended only if the representative office
activities is different from before
Permanent Business License KPPA can apply activities license for 3
years, after the 3 years period, KPPA can
apply for extension of activities licenses
for 1 year and can apply again for 1 year.
After that, the Representative Office need
to change its activities if they need to
remake the activities license.
KP3A
for 1 year
 Extension Business License shall
be valid for a maximum of 3
(three) years unless determined
less than 3 (three) years in the
letter of appointment and may be
extended in accordance with the
validity period of the appointment
specified in the letter of
appointment.
 KP3A will need to obtain
Temporary Business License
from BKPM to complete the
general licenses (SKDP, NPWP,
and TDP), including if the CRO
is a foreigner, he need to obtain
his personal work & stay permit
(“IMTA & KITAS”) and personal
tax ID.
 After the general licenses and
related personal permits of CRO
have been completed, then the
RO can apply the Permanent
 For Discussion Purposes Only

Subject Matters KPPA KP3A

Business License to BKPM.

Tax Matter KPPA has the obligation to filling the tax KP3A has the obligation to filling the
reports as follows: tax reports as follows:

WHT art 4 (2) WHT art 21

WHT art 21 WHT art 23

WHT art 23 WHT art 26

WHT art 26 WHT art 4(2)

Vat self-assessed

WHT 15 (optional depends on tax

registration letter which is under full
discretion of the tax office).

Only need to maintain the list of

expenses incurred by the RO.
For Discussion Purposes Only