The Korean Wave: K-pop representative office in Indonesia
The Indonesian market is attractive to Korean entertainment entrepreneurs. One of the largest agencies from South Korea, SM Entertainment, officially expanded its wings, especially to the Indonesian area. SM Entertainment is the only South Korean entertainment agency with an official representative office in Indonesia.
So far, SM is among the agencies that often hold global auditions in several countries, including Indonesia, to find the new face of K-Pop idols. Once fully operational, the SM representative office will handle all forms of operation that bring in SM artists. That’s one of the reasons why SM established a representative office in Indonesia. Indonesia is indeed a country with a lot of K-pop fans.
The entertainment company also opened its first offline store called Kwangya Jakarta. Kwangya Jakarta was officially opened at Lotte Mall Avenue, South Jakarta. Access to it is quite easy because it can be accessed by several public transportation options.
The enthusiasm of the fans can be felt since the first day of its opening. Fans even queued up neatly to get into the offline store!
The establishment of SM’s representative office proves that Indonesia is starting to be considered a potential market for international, especially Korean.
So far, K-pop concerts in Indonesia have always been sold out. Almost every month, concerts by South Korean artists are held in Indonesia.
Not only concerts, there are also various forms of cooperation with other South Korean entertainment agencies.
YG Entertainment has collaborated with Shopee to sell its official merchandise. The first sale of the YG Official Shop, on July 31, 2018, successfully sold out three thousand items in just ten minutes.
In the past, Indonesia was never considered a market share for Korean pop culture and was rarely visited by K-pop idols. Now, Indonesia is becoming a significant consumer and revenue target.
Establishing a representative office in Indonesia is a serious step towards making it a potential market. But how do you set up a legal one in Indonesia?
What is a representative office in Indonesia?
Setting up a representative office in Indonesia has its advantages, one of which is that it only requires a relatively small amount of capital. In addition, setting up a representative office is an easier and faster way to start a business than forming a limited liability company (PT) in Indonesia.
Foreign investors can develop markets, promote products, find business partners, and further explore Indonesia’s commercial culture through a representative office.
Unlike foreign companies (PT PMA), which are closely linked to the Negative Investment List (DNI), foreign investors can open representative offices in most sectors or industries in Indonesia.
Benefits of setting up a representative office in Indonesia
There are many benefits, such as:
- No minimum investment and low expenses maintenance
- 100% foreign ownership permitted
- Fast and straightforward incorporation and establishment
- Directors and shareholders are not required
- Business entity that complies with Indonesian Law
- Establishing a reputation and market presence in Indonesia is cost-effective
- Limited stay permit (KITAS) applications for foreign executives permitted
A foreign representative office is not allowed to exceed the duties and functions prescribed by Indonesian law in carrying out its duties and functions.Â
Furthermore, the head of a foreign representative office is not allowed to hold concurrent positions as the company head or as the head of more than one branch office.
Rules regarding employees at foreign representative offices must also be adjusted based on applicable labor laws in Indonesia.
The document that must be filled when register the office include:
- the name of the appointing overseas parent company
- business activities of the appointing overseas company
- business activities of the corporate activities abroad
- full address of correspondence
- telephone number
- electronic mail address (email)Â
Setting up a Business with LetsMoveIndonesia
While setting up a representative office in Indonesia is easier than setting up a PMA, the paperwork can be overwhelming. LetsMoveIndonesia will help make the requirement process easier and smoother on your behalf.
Some packages include all access to building your business in Indonesia. Contact LetsMoveIndonesia in Jakarta and Bali right now!
