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Opening a construction representative office (BUJKA) in Indonesia

A representative office is an office set up by a company overseas. Representative offices take care of their parent company’s business locally. It’s also an easy way to enter a foreign market. In Indonesia, there is a specific representative office for construction companies called Badan Usaha Jasa Konstruksi Asing (BUJKA).


Requirements and Prerequisites for BUJKA


Only foreign “large-scale” construction companies may open a BUJKA. The process to open a BUJKA starts with applying for a preliminary permit by obtaining the following sublicenses:

  • Membership of Indonesian Contractors Association (Kartu Tanda Anggota/KTA)

  • Certificate of Expertise (Sertifikat Keahlian /SKA)

  • Certificate of Business in Constructions (Sertifikat Badan Usaha/SBU)

  • After getting the preliminary permit, the parent company can proceed with setting up the BUJKA by preparing the following:

  • BUJKA license, obtained from the One Single Submission (OSS))

  • Tax registration


The location of the office of a BUJKA is not specified by the law. You can open a BUJKA office anywhere as long as it is in a commercial building. There is also no set minimum capital requirement for a BUJKA.


Timeline to set up BUJKA


Setting up a BUJKA involves getting some documents together. The timeline in the table below shows how long it would take to establish a BUJKA with VIVO.



Documents obtained

Timeline

​Initial licenses of SBU, KTA, and SKA from Constructions association

1 month

Review of application and issuance of Government Levy to be paid

5 working days

Representative Office of Construction Company License/ BUJKA

​3 working days

Tax registry

​2 working days

Total

1 month and 10 working days



Allowed activities for BUJKA


BUJKAs can conduct typical business activities like:

  • Hire foreign experts* *A BUJKA can apply for work permits for its foreign employees

  • Hire Indonesian staff

  • Open a local bank account

BUJKAs can also perform construction-related activities including:

  • Contact companies and institutions and collect information about available construction projects in Indonesia.

  • Participate in tenders.

The types of projects a BUJKA can work on must be complex, high-risk, and/or highly technical. Only local construction companies can work on smaller projects.


A BUJKA can work on construction projects if it has a local construction company (BUJK) as its partner. The construction company must be a limited liability company and 100% Indonesian-owned meaning it cannot have any foreign shareholders.


BUJKAs can participate in bidding even if they have not found a local partner for their prospective projects. Additionally, BUJKAs can partner up with different BUJKs for each project.



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