A representative is the most efficient way to start up business in Indonesia for foreign investors, especially if they are still exploring business opportunities in the Indonesian market. A representative office is a branch of investors overseas business and it can only conduct research, marketing, and promotion activities. A representative office CANNOT generate revenue and profit because the Indonesian government restricts representative office to conduct any business activities to generate revenue and profit. In order to conduct trading or other business activities, investors need to establish a Foreign Direct Investment Company (PT. PMA). Since establishment of permanent presence in Indonesia in the form of Foreign Investment Company (PT PMA) takes time and requires significant amount of capital injection, foreign investors prefer to set up a representative office first to research and analyse the market in Indonesia before establishing a Foreign Direct Investment Company (PT. PMA)
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