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.