Foreign companies establishing a Foreign Company Representative Office (Kantor Perwakilan Perusahaan Asing or “KPPA”) in Indonesia may appoint a foreign national as the head or representative of such office. However, the appointment of a foreign national as the head of a KPPA is not solely related to obtaining a residence permit.
KPPA licensing, immigration requirements, and employment regulations concerning foreign workers (Tenaga Kerja Asing or “TKA”) need to be aligned to ensure that the foreign representative can legally reside and carry out activities in Indonesia.
The following are several key matters that should be considered.
KPPA as a Representative Office
Based on Minister of Investment/Head of BKPM Regulation No. 5 of 2025, a KPPA is generally permitted to perform representative and business preparation functions, including acting as a supervisor, liaison, and coordinator for its parent company or affiliates, as well as preparing for the establishment and development of foreign investment (PMA) businesses in Indonesia.
In principle, a KPPA is not permitted to directly conduct commercial transactions or manage the operational activities of a company in Indonesia.
This limitation is important in determining the appropriate immigration status for a foreign national serving as the head of a KPPA.
Immigration Status of a Foreign National Head of KPPA
A foreign national appointed as the head of a KPPA and required to reside in Indonesia must have an appropriate residence permit as well as a work permit.
Immigration and employment applications must be supported by the KPPA’s corporate and licensing documents, including the NIB and the appointment letter of the head of the KPPA.
More importantly, the purpose of the residence and work permits must correspond to the actual role and activities of the foreign national in Indonesia.
Holding an ITAS and a work permit alone does not grant the foreign national authority to carry out activities beyond the scope permitted under the applicable regulations.
Application Process
In practice, the process generally includes:
- KPPA Registration, obtaining the KPPA’s NIB through the OSS system;
- Appointment, formally appointing the foreign national as the head of the KPPA through the required appointment document;
- Employment Application, in this case, before applying for the visa, the work permit must first be applied for with the Ministry of Manpower;
- Immigration Application, obtaining the appropriate limited stay visa and ITAS in accordance with the foreign national’s role and purpose of stay; and
- Ongoing Compliance, ensuring that the activities of the head of the KPPA remain within the scope of activities permitted for a KPPA.
This sequence is important because KPPA information and documents form part of the basis for the immigration and employment applications.
Key Considerations
A foreign national serving as the head of a KPPA should not be viewed merely as a foreign national holding an ITAS.
The KPPA structure, immigration status, and the foreign national’s actual activities must form one consistent compliance framework.
Activities exceeding the scope of the KPPA may create not only licensing and employment risks, but also immigration compliance and employment risks for the foreign national concerned.
Therefore, for foreign companies, the KPPA structure and the immigration status of its representative should ideally be assessed before the foreign national begins carrying out activities in Indonesia.
How TAMA Global Mobility Can Assist
TAMA Global Mobility assists foreign companies and multinational companies with:
- assessment of KPPA regulations and NIB;
- development of immigration strategies for foreign representatives;
- coordination of VITAS and ITAS;
- assessment of TKA and RPTKA obligations; and
- ongoing immigration and regulatory compliance.
By integrating immigration, global mobility, and corporate licensing, TAMA Global Mobility helps foreign companies maintain a structured business presence in Indonesia in accordance with applicable regulations.
Disclaimer: Here
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TAMA Global Mobility
WhatsApp: +62 821-1015-402
Email: info@tamaglobalmobility.com
For additional insights on Indonesian immigration compliance and global mobility matters, explore our related publications:
Permanent Establishment (BUT) in Indonesia: A Guide for Foreign Companies
Can a Foreign National Hold More Than One Stay Permit in Indonesia?
Can Foreign Nationals Convert KITAS to KITAP in Indonesia?
Can Foreign Nationals Extend Their Stay Permit in Indonesia Online?
When Immigration Conducts an Inspection: What Can Immigration Officers Ask in Indonesia?
Change of Address in Indonesia: Immigration Reporting Obligations for Foreign Workers (TKA)
