• Indonesian
bujka: representative foreign company

Setting Up a Representative Foreign Construction Company (BUJKA) in Indonesia

A representative office can be an option for a foreign company that wants to expand the business but doesn’t want to open a company in Indonesia.

One of the representative office’ forms (Read: How to invest in Indonesia through a Representative Office) that you can choose is BUJKA (Badan Usaha Konstruksi Asing).

To open such a representative office, the Foreign Construction Company (hereinafter referred to as “the company”) must obtain a License of Foreign Construction Representative Office issued by BKPM (The Indonesian Investment Coordinating Board).

This license is obtained after the company had obtained SBU, a certificate of competence, classification, and qualification from LPJK (Indonesia Construction Service Development Board). Furthermore, the company must acquire a construction permit from the local government called SIUJK (Surat Ijin Usaha Konstruksi or Construction Business Permit). There are also some other requirements companies must meet.

This article will provide you all the details to establish a representative office of foreign construction service.

Representative Foreign Company for Construction Business in Indonesia

The Difference between SBU, BUJKA, and SIUJK

SBU is a certificate of recognition about the competence and capabilities of the parent company in the field of construction service business. Meanwhile, BUJKA is a principle license issued by BKPM. This is needed to be able to start the business legally in Indonesia.

On the other hand, SIUJK is a business license issued by the local government where the company is located. In order to establish a BUJKA, the company should first get an SBU In fact, the company must fulfill all licenses and requirements set by the local government so that the company can operate on part of the city in Indonesia and can do all the bureaucracies easily.

Obtaining Construction Work/Consultancy Licence (SIUJK)

Cekindo assists our clients whose business activity engages in construction work or consultancy management to apply for SIUJK.

The Construction Work/Consultancy License (IUJK) application covers below documents:

  • Expertise Certificate (SKA) for 5 persons
  • Construction Association Membership (KTA)
  • Certificate of competence (SBU) – Applied to LPJK
  • Construction Work  License  (SIUJK)  will be registered to grade  B2  (medium enterprise) with the minimum authorized capital of IDR 50,000,000,000.

SIUJK will only be granted into BUJKA if the company is considered as a “large/big” company based on the letter or the certificate issued by the Indonesian Construction Service Development Board.

Registering the Representative Foreign Company for Construction Services (BUJKA)

The Foreign Construction Representative Office (BUJKA) is a type of Representative Office that allows to conduct of construction consultation (engineering, design) and/or supervision services (monitoring), as well as construction implementation/work/EPC.

BUJKA allow to:

  • Follow procurement of construction tender with the provision of a complex construction project, high risk, and/or high technology.
  • Employ foreign and local employees in accordance with applicable regulations.
  • Conduct construction works in accordance with Foreign Construction Representative Office permit (consultation, monitoring, or implementation), after forming ties/joint operation with a national construction company.

The outcome of BUJKA establishment are as follows:

The period needed to apply is: 2 months

Steps for Establishing a BUJKA in Indonesia

After you have a broad understanding of BUJKA, you now have to know the steps you have to take to register your construction company. Below are the steps to establish a BUJKA in Indonesia:

  1. Arranging an expertise certificate (SKA): 2 weeks
  2. Obtaining an Association construction membership: 2-6 weeks—depending on the association
  3. SBU certificate from LPJK: 3 weeks
  4. BUJKA permit from BKPM: 3 weeks
  5. Domicile permit: 3 weeks—depending on the local sub-district government
  6. Tax Registration Number : 1-2days
  7. Construction Business Permit (SIUJK): 2-3 weeks
  8. Company Registration Number (TDP): 2 weeks

The license for the representative office of BUJKA is valid for 3 years. The license can be extended based on the existing regulations. After obtaining the license, BUJKA representative office is might do complex, high risks, or high technology construction projects in Indonesia (Ministry of Public Works Regulation No.10/2014 Article 12).

Due to the special nature of this company, the requirements of the representative office establishment are also different, check our business overview for more information. Therefore, you absolutely need legal and professional advice. Cekindo will assist you to accomplish all the steps to get the documents to register a representative office of foreign construction service. Contact us or simply write down your questions in the comment below for further assistance.

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