Even with the global crisis due to COVID-19, the investments in East Java, especially in Surabaya, are still growing positively. The result is pretty encouraging at the beginning of 2020: 59.2% year-on-year growth was recorded during this period. And according to BKPM, from January to June in 2020, the total value of investments from both foreign and local investments reached IDR 51 trillion (IDR 12.5 trillion from foreign investments and IDR38.4 trillion from local investments).
Therefore, this may be the best time for foreign investors to start with a representative office in Surabaya, especially in the following sectors that are consistently doing well: logistics, transportation, telecommunication, real estate, and housing sectors. These healthily-growing sectors have contributed an amazing investment value of approximately IDR 22.41 trillion.
Investors are coming from all over the world to Surabaya to seize the lucrative opportunities and benefits present for representative offices.
Some of the major benefits of establishing a representative office in Indonesia are summarised below:
The process of establishing a representative office in Surabaya is easier than setting up a PT PMA. But it is still advisable that you seek professional consultation from an expert to guide you through the whole process.
You will have to get ready of the below documents to form your representative office in Indonesia:
Most of the documents, such as appointment letter, an intent letter, statement letter, reference letter, association articles, and Power of attorney require legalisation from a public notary and the Indonesian Embassy in the parent company’s country.
A representative office’s license has a validity of three years and you can extend it twice. Each extension allows you to have another one more year of validity. After that, you can’t extend the license anymore unless you can show that the activities at your representative office are different from the previous one.
Cekindo specialises in the Indonesia company registry for locals and foreigners who are interested in the Indonesian market. Indonesia is offering excellent business conditions for various types of businesses: technology, manufacturing, industrial, among others.
With a long tradition in providing Indonesia company registry services to foreign investors, Cekindo also strives to offer complete business advisory services to our existing and potential clients like you.
With our vast experience, our consultants with regional experience can accelerate your path to success. Come talk to us. Fill in the form below.