Home Blog How can A Representative Office in Semarang be Beneficial for Your Business? Business Setup | Company Registration How can A Representative Office in Semarang be Beneficial for Your Business? InCorp Editorial Team 6 August 2019 3 minutes reading time Table of Contents Setting Up a Representative Office in Semarang: Why? Representative Office in Semarang: Purpose, Benefits and Types Set Up Your Representative Office in Semarang with Cekindo 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 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. Read Full Bio Verified by Ales Cina Consulting Manager at InCorp Indonesia Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights. Frequently Asked Questions What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. Can you provide pricing examples for company registration services? To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants. Will the government check the minimum paid-up capital for doing business in Indonesia? The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must. What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). Get in touch with us. Lead Form Updates Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business 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. More on Business Setup China Fortune Land Development: A Case Study Read more F&B Services’ Compliance in Indonesia: Tending to Clipped Wings Read more 6 Mistakes To Avoid When Buying Bali Real Estate Read more