Setting up a representative foreign construction company (bujka) in indonesia

Setting Up a Representative Foreign Construction Company (BUJKA) in Indonesia Jakarta, October 2016

2

Representative office can be an option

for the foreign company who wants to

expand the business but doesn’t want to

open a company, so you can establishing

a representative office instead.

One of representative office’ forms that

you can choose is BUJKA (Badan Usaha

Konstruksi Asing).

For further info, visit: www.cekindo.com. email to: [email protected], phone: 021-80660999

The Overview

http://www.cekindo.com/

mailto:[email protected]

3 For further info, visit: www.cekindo.com. email to: [email protected], phone: 021-80660999

The Overview

To open such a representative office, the Foreign Construction Company

(hereinafter referred as “the company”) must obtain many documents, such as:

• License of Foreign Construction Representative Office, issued by BKPM

• SBU, a certificate of competence, classification, and qualification from LPJK

• SIUJK (Surat Ijin Usaha Konstruksi or Construction Business Permit), issued

by local government.

There are also some other requirements that should be met by the company

and this article will provide you all the details to establish a representative

office of foreign constriction service.



The Differences among SBU, BUJKA, and SIUJK


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, all license and requirements set by the local government must be fulfilled so that the company can operate in the city of Indonesia where it is located and can do all the bureaucracies easily.

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



Obtaining Construction Work/Consultancy License

(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.

IUJK 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 Indonesian Construction Service Development Board.



Registering The Representatives Foreign Enterprises

For Construction Services (BUJKA)

6

BUJKA is a type of Representative Office that is allowed to conduct construction consultation (engineering, design) and/or supervision services (monitoring), as well as construction implementation/work/EPC. BUJKA is allowed to: • Follow procurement of construction tender with provision of complex

construction project, high risk and/or high technology. • Employ foreign and local employee 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 national construction company.

The outcome of BUJKA establishment are as: Representative BUJKA permit published by The Ministry of Public Works, Domicile Letter, Company Tax ID, and Company Registration Certificate.

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




Steps For Establishing A BUJKA In Indonesia

Due to the special nature of this company, the requirements of the representative office establishment are also different. Therefore, you absolutely need a legal and professional advice. Cekindo will assist you to accomplish all the steps to get the required documents to register a representative office of foreign construction service. Contact us through email to [email protected].

The license for the representative office of BUJKA is given for 3 years and can be extended based on the existing regulations. After

obtaining the license, BUJKA representative office is expected to do complex, high risks, or high technology construction projects in

Indonesia (Ministry of Public Works Regulation No.10/2014 Article 12).


http://www.cekindo.com/contact.html





9

Our Vision

To be leading consulting firm of business services to clients expanding and operating in Indonesia.

Our Mission

To provide full-range of market-entry and corporate services to enable our clients to focus on their core business and activities in Indonesia and beyond.

PT. Cekindo Bisnis Grup is a leading consulting firm of Market-Entry and Corporate secretarial services to clients expanding and operating in Indonesia and further to Southeast Asia.

Our Values Client-focused Excellence performance Knowledgable locally Integrity moral Normative operations standards Delivered on-time One stop services provider

Company Profile

10

Our main services:

Business Set Up

Business Process

Outsourcing

Local Representation

Company Registration

License & Product Registration

Market Research & Analysis

Local Partner Selection

Trade Mission Land & Property

Ownership

Recruitment & HR Establishment

Payroll Management

Accounting & Tax Reporting

Visa & Work Permit

Mystery Shopping

Local Distributor & Partner

Buying Agent Office Space

Cekindo Services

11

Senior Advisor Prof. Dr. Rahardi Ramelan

Relevant Experience

Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the

Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash

University, Australia and Northeastern University Boston.

Minister of State for Research and Technology of the Republic of Indonesia and Chairman of the Agency for Assessment and Application of Technology (BPPT) in the Seventh Development Cabinet of the Republic of Indonesia.

Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of Indonesia and Chairman of National Logistic Agency.

Deputy Chairman for Industrial Analysis and Vice Chairman of the National Development Planning Agency of the Republic of Indonesia

Several management positions and responsibilities related to Indonesian Aviation industry, the Weapon industry.

Prof. Dr. Rahardi Ramelan

Profile Overview

12

Principal Consultant Michal Wasserbauer

Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the

Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of

Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,

Energy, Medical Device, Heavy and Automation Industries.

+6281282300584 | [email protected]

Michal Wasserbauer

Market opportunities valuation Investment analysis Performance management Feasibility studies

Strategy planning Stakeholder management Marketing consultancy

Profile Overview

Relevant Experience

Relevant Skills

Multinational grocery and general merchandise retailer: Capital Investment Appraisals

World‘s largest student and recent graduates-run organisation: Financial Controller

International consultation company: Market Expansion Consultant

13

Principal Consultant Nurmia Agustina

Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business

Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &

Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change

Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,

Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.

+628119691987 | [email protected]

International Management company: Management & Legal

consultant

Chamber of Commercial: Head of Business Processing Section

Nurmia Dwi Agustina

Corporate law Outsourcing processes Company formation Acquisitions Project Management Competitive Analysis

Business Planning Risk Management Talent Management Strategy Recruitment Visa & Work Permit Change Management

Relevant Experience

Relevant Skills

Profile Overview

14

Selected Clients

PT. Cekindo Bisnis Grup

Grand Slipi Tower 9th floor Jl. Letjend. S. Parman Kav 22-24 Jakarta - 11480 Indonesia [email protected] +6221 80660900