Construction Representative Office (BUJKA)

Construction Representative Office (BUJKA)

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Foreign investors aiming to expand their construction business to Indonesia have two options – set up a limited liability company (PT PMA) or a representative office for their foreign construction company (BUJKA).

Scope of work has covered below:

  1. Review of application and issuance of government levy to be paid
  2. Obtain BUJKA License from BKPM (Investment Coordinating Board)
  3. Receive all other licenses such as Domicile Letter, Company Tax ID (NPWP), as well as Company Registration Certificate (TDP)

Estimated delivery time: 2 months

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Description

Setting up a Construction Representative Office (BUJKA)

A construction representative office (BUJKA) is a type of Indonesian representative office for foreign construction companies working in the field of construction planning, implementation and/or supervision.

A construction representative office (BUJKA) is best suitable for larger foreign construction companies since they are only allowed to engage in large-scale construction projects while small size projects are reserved for local construction companies.

The functionality of a construction representative office (BUJKA) is limited to:

  • Collect information regarding available construction in Indonesia and contact companies/institutions
  • Work on construction projects together with a local construction company with acquiring a construction license (SIUJK)
  • Take part in tenders
  • Hire overseas professionals and Indonesian team of workers
  • Apply for a limited stay permit for its foreign executives
  • Open a bank account in Indonesia

Reason to choose BUJKA ?

Representative offices are not equal to limited liability companies. However, many foreign companies choose for a BUJKA instead of setting up a limited liability construction company (PT PMA) in Indonesia mainly because it does not require any local shareholders.

Once a BUJKA is set up, it can participate in tenders and collect information about construction projects all over Indonesia. Even though you don’t need to have local shareholders when setting up a BUJKA, you are required to have a local construction company as your partner by the time the project is being delivered.

Therefore, a BUJKA is best suitable for larger foreign construction companies since they are only allowed to engage in large-scale construction projects while small size projects are reserved for local construction companies.

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