representative office semarang

How can A Representative Office in Semarang be Beneficial for Your Business?

  • InCorp Editorial Team
  • 6 August 2019
  • 3 minute reading time

So, you have your eyes set on doing business in Indonesia. But how do you get started and penetrate the market? Where in Indonesia is a good entry point for your business? Semarang may be your gateway to business in this dynamic country. With Semarang’s new drive to lift its economy to a whole new horizon, the city is ripe with opportunities. Therefore, a big shift of foreign investments to Semarang has excited even more local and foreign investors to make it big in Indonesia. Foreign establishments who desire to explore the opportunities of investment, you are encouraged to learn more about the reasons you should set up a representative office in Semarang, which is the focus of this article. Read on.

Setting Up a Representative Office in Semarang: Why?

Semarang is an Ideal Location

More and more factories have been built in Semarang from established businesses that are located in Jakarta, Bogor, Depok, Tangerang and Bekasi. The reason is simple: when compared to Jakarta, the wages in Central Java (Semarang is part of the region) are much lower.

Want to hire employees? Read everything you need to know about hiring a worker in Semarang.

With the support of the local government and foreign direct investments that never stop pouring, Semarang has now transformed itself into an energetic administrative and trading area with business hubs, offices, and industrial parks located in the low land.

representative office semarang benefits

Representative Office in Semarang: Purpose, Benefits and Types

The Purpose of a Representative Office

A representative office in Semarang is set up when a foreign company wishes to establish a presence in Indonesia. However, the said foreign company has yet intended to go ahead with the actual company incorporation.

A representative office in Semarang is designed for non-commercial activities, allowing foreign companies to conduct market research, build brand awareness and approach potential clients.

Benefits of a Representative Office

Foreigners flock from across the globe to grab the business opportunities available in Semarang with the advantages offered by a representative office. Some of the benefits of setting up a representative office include the following:

  • Low establishment costs and monthly expenses
  • Visa sponsorship for foreign Chief of Representative Office, foreign employees and business partners
  • Flexible and lenient corporate structure
  • 100% full ownership of overseas foreign entity
  • QC/QA and supervising teams are able to oversee production in local factories
  • Call centers serving as customer service support in Semarang as long as no profits are generated
  • Local relationship establishments such as director, shareholders, and commissioner are not required
  • No capital requirements, no investment plan, and no reporting to BKPM
  • The most convenient and cheapest option to establish a legal entity in Semarang with 100% foreign ownership


In short, by establishing a representative office, foreign companies are able to make a presence in the city and across Indonesia, without having to meet the stringent requirements of setting up a Local PT or PT PMA.

Types of Representative Office

According to the latest BKPM’s Regulation 13/2017, there are four types of representative offices:

  • General Representative Office of a Foreign Company (KPPA)
  • Representative Office of a Foreign Trading Company (KP3A)
  • Representative Office of a Foreign Oil and Gas Company (KPPA MIGAS)
  • Representative Office of a Foreign Construction Service Company (BUJKA)

Set Up Your Representative Office in Semarang with Cekindo

Should you require more information about establishing a representative office, do not hesitate to talk to our experts by filling in the form below or visiting us on-site. Our other offices are also available in Jakarta and Bali.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.