FOREIGN CONSTRUCTION REPRESENTATIVE OFFICE

Business license, certification and registration to open representative offices of foreign companies and start a construction business in Indonesia

In order to establish a representative office, the foreign construction company (“BUJKA”) shall obtain a business license called the License of Representative Office for Foreign Construction Services (Izin Perwakilan Badan Usaha Jasa Konstruksi/“IUJK”).  

What is a Foreign Construction Representative Office in Indonesia

Andhyka CONSULTING
Construction Representative Office is a representative office established by foreign construction companies to carry out business activities in Indonesia as a construction contractor or consultant. Foreign Construction Service Business Entity (Badan Usaha Jasa Konstruksi Asing) hereinafter abbreviated as BUJKA shall be business entity incorporated under the laws of and domiciled in a foreign country, having representative offices in Indonesia, and deemed equivalent to a Limited Liability Company.  
​The Foreign Construction Representative Office is only allowed to conduct projects in Indonesia through the Joint Operation with locals. This Joint Operation is only permitted to join the tender and conduct the Government projects funded by the Foreign Aid, projects in the frame of Foreign Investment and Domestic Investment as well as the projects funded by private funds.

BUSINESS ACTIVITIES

The Foreign Construction Representative Office (BUJKA) is permitted to undertake construction services and/or engineering consulting activities, the BUJKA must form a joint operation (JO) with an Indonesian construction company (BUJK) to execute either a Government or other projects.
Joint Operation shall be business cooperation between a BUJKA and one or more Indonesian Construction Company (BUJK), which is temporary in nature for handling one or several construction works and it shall not constitute a new legal entity under Indonesian laws and regulations.
  1. JOINT OPERATION
    The joint operation contract shall commence as from the participation in the processes of procurement, implementation, up to and including the completion of the construction work concerned.
  2. CRITERIA OF WORK
    BUJKA shall only be permitted to undertake construction works which have a high level of risk, use high technology and involve high costs.
  3. VALUE OF WORK
    Value of construction work for contractor at least Rp. 100.000.000.000,- (one hundred billion rupiah) and the value of construction work for consultants minimum is Rp. 10.000.000.000, - (ten billion rupiah).


REGULATION OF BUSINESS LICENSE
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As specified in the Government Regulation of the Minister of Public Work of the Republic of Indonesia No. 10/PRT/M/2014 concerning Guidelines on the requirements for the granting of foreign construction services business entity representative office license, in order to establish the representative office for foreign construction services, the foreign construction company (“BUJKA”) shall obtain a business license called the License of Representative Office for Foreign Construction Services (Izin Perwakilan Badan Usaha Jasa Konstruksi/“IUJK”). 

Representative Office License shall be granted to BUJKA of large-scale qualification.

Preparations and step by step guide to set up a Foreign Construction Representative Office in Indonesia

Guide to set up representative office