We understand that Representative Offices of Foreign Construction Services Company (BUJKA), means a business entity established by law and domiciled in a foreign country, which has a representative office in Indonesia, and is equivalent to a legal entity of Limited Liability Company which is engaged in construction services (Article 1 paragraph (3) Regulation of Head of Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) Number 15 of 2015 Concerning Guideline and Procedure for Licensing And Non-Licensing Investment (“BKPM Regulation No.15/2015”)).
Since BUJKA is only granted to the BUJKAs with huge qualifications. Therefore, it should be known that the BUJKA should have obtained a license which is issued by BKPM, and also several licenses which must be applied by BUJKA for conducting business in Indonesia.
The following is type of licenses that must be owned by BUJKA:
We understand that BUJKA is only allowed to undertake the construction works which are high risks, high-tech, and high cost, as follows:
According to Article 11 of the Regulation of the Minister of Public of Works and Housing Republic Indonesia Number 10/Prt/M/2014 (“Regulation Ministry of PU No. 10/2014”), we understand that Representative Office of BUJKA could cooperate with the Domestic Construction Service Company (also known as Badan Usaha Jasa Konstruksi Nasional or BUJKN) for doing construction work as stated in the BUJKA Project Qualification (point 2 above).
However, only BUJKN who meet the following criteria can engage with the BUJKA:
The benefit of BUJKA when join operation with BUJKN is the financial supporting. In whic, the construction work can be financed by:
(Article 12 of the Regulation of the Minister of Public of Works and Housing Republic Indonesia Number 10/Prt/M/2014).
HOW CAN SMART CONSULTING HELP YOU?
To ensure a smooth investment and business operation from the legal perspective, but also still focus on maintaining your business in Indonesia and reach your revenue target, it is advised for you to find capable and trusted lawyers or legal consultants for advice and assistance in ensuring your legal compliance with prevailing laws and regulations.
SMART Consulting is an Indonesian Corporate Legal Services firm. SMART has assisted Clients in dealing with matters related to Construction and Investment Law, such as assist Client to establish many types of Representative Office in Indonesia. We also assist Clients regarding the Compliance and Corporate Legal Services.
Contact Us Now to get your legal solution for your business goals, and still comply with the prevailing laws and regulations.