For foreign companies, there are various options when it comes to setting up your businesses in Indonesia. A representative office would be the easiest and simplest to set up. This is where it is cheaper and definitely quicker to set up as compared to other configurations. Basically, a representative office or RO has a narrow set of activities as compared to a full fledge company. Basically ROs act as the eyes and years for the local market representing the head office which are in another country.

On a larger scale, an RRO or Regional Representative Office has more operational activities. The license is issued by the Investment Coordinating Board of Indonesia where they are only allowed to employ up to 2 expatriates. Major activities here include monitoring and coordinating activities for a region which means that the RRO in Jakarta could be the managing arm for Indonesia, Malaysia, Singapore and the Philippines.

A Foreign Joint Venture company where it can start with total foreign ownership in the start but the regulations in Indonesia is that the company must sell shares to Indonesian investors within 15 years of operations which can be done either going through the stock exchange or through direct placement.