Construction representative office (BUJKA)

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 Emerhub.

Documents obtainedTimeline
Initial licenses of SBU, KTA, and SKA from Constructions association1 month
Review of application and issuance of Government Levy to be paid5 working days
Representative Office of Construction Company License/ BUJKA3 working days
Tax registry2 working days
TOTAL1 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.

Get Started with Establishing a BUJKA

Let's grow your business in Indonesia

Emerhub has years of experience with branch / rep office in Indonesia.

Get in touch with Emerhub by filling in the form below and our consultants will reach out to you within a few working hours.

Optional. Leave blank if you prefer to communicate via email.
branch / rep office in Indonesia
© 2020 Emerhub Indonesia. All rights reserved. About Emerhub. SG