Previously we have discussed the Representative Office of Foreign Company (KPPA), so currently we wants to discuss the Second Type of Representative Office, which is Representative Office of Foreign Trade Company (Kantor Perwakilan Perusahaan Perdagangan Asing/KP3A).
The definition KP3A are similar with the KPPA, in which Pursuant to Article 1 paragraph 29 Regulation of Head of Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) Number 15 of 2015 Concerning Guideline and Procedure for Licensing And Non-Licensing Investment (“BKPM Regulation No.15/2015”), the definition of KP3A is:
"Office which is lead by an Indonesian citizen or foreigner who is designated by a foreign company or joint foreign company overseas, as its representative in Indonesia."
We understand that KP3A should obtain the License from the BKPM to operate in Indonesia based on Article 24 Paragraph 4 BKPM Regulation No. 15 of 2015. Therefore, there id 2 (two) legal basis as for the reference to conduct the KP3A in Indonesia, as follows:
It should be noted that BKPM Regulation No. 15/2015 does not repeal the MOT Regulation, the major changes between the two of regulations are (i) the centralization in applying for the license; and (ii) removing the obligation of Security Deposit for KP3A.
Pursuant to Article 25 BKPM Regulation No. 15/2015, we understand that there are several types and terms of KP3A license, which consist of:
Article 24 Paragraph (1) 25 BKPM Regulation No. 15/2015 regulates that KP3As’ can only become as an Agent in the trading activities, either Selling Agent, Manufactures Agent, Buying Agent.
Furthermore, pursuant to Article 3 Regulation of the Minister of Trade the Republic of Indonesia Number: 10/M-DAG/PER/3/2006, KP3A can conducting the following activities:
We understand that KP3A is prohibited for conducting trading and selling activities, such as submitting tenders, signing contracts, settling a claim.
According to Article 24 Paragraph (3), BKPM Regulation No. 15/2015 regulates that KP3A shall employ at least 3 Indonesian manpower if KP3A hired foreign manpower (TKA) as the Chief of Representative of the KP3A.
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