Indonesia’s rapid infrastructure expansion is opening doors for global construction companies. If you’re looking to explore this dynamic market without establishing a full-fledged subsidiary, setting up a BUJKA (Badan Usaha Jasa Konstruksi Asing) could be your most efficient entry strategy.
A BUJKA is a type of representative office exclusively designated for foreign construction companies. It allows you to operate in Indonesia legally, provided you work jointly with a local contractor for each project. It’s a flexible, compliant pathway tailored for companies that focus on planning, supervision, or implementation of large-scale construction works.
Also read: Indonesia Construction Industry: Outlook and Opportunities
Why Choose BUJKA?
A BUJKA structure comes with significant advantages:
- Full Foreign Ownership: Unlike PT PMA, BUJKAs have no local shareholder requirement.
- No Capital Injection: There’s no minimum paid-up capital required.
- Speedier Setup: Processes are faster compared to incorporating a full company.
However, it also comes with limitations:
- Project Eligibility: You can only bid on high-risk, high-cost, or high-tech construction projects.
- Joint Operations: Each project mandates a partnership with a licensed Indonesian construction company.
- No Direct Revenue: Your BUJKA cannot independently generate income—only through joint operations.
Also read: 10 Top Construction Companies in Indonesia
Step-by-Step BUJKA Establishment Process
Fulfill Eligibility and Obtain Certifications
Before applying, your company must:
- Be classified as a large-scale construction business (e.g., minimum assets of Rp. 3 billion).
- Join an LPJK-accredited association (like AKI or INKINDO).
- Secure certifications:
- SKA (Certificate of Expertise) for your professionals.
- SBU (Business Entity Certificate) showing classification and qualifications.
Prepare Documentation
Documentation is required for:
- Parent company: Articles, financials, LoA, LoI, LoS.
- Office location: Domicile certificate, building photos, tax receipts.
- Chief Rep: Passport (foreigners) or KTP & NPWP (Indonesians).
OSS Application
Through the OSS system:
- Submit your BUJKA application.
- Pay the administrative fee:
- USD 10,000 for construction works.
- USD 5,000 for consultancy services.
- Await verification and issuance (~3 weeks total).
Register for Tax
You’ll need to:
- Obtain an NPWP (Taxpayer ID).
- Appoint a local tax proxy if needed.
5. Secure Local Permits
Obtain:
- Domicile Certificate (Kelurahan).
- Company Registration (TDP/NIB).
Joint Operation: A Legal Requirement
Every BUJKA project must involve a joint operation (JO) with an Indonesian contractor:
- The Indonesian partner must be 100% locally owned and large-scale.
- Projects must align in classification and qualification.
- Responsibilities, liabilities, and outcomes are shared until project completion.
This joint model ensures technology transfer, risk sharing, and local capacity building—while giving foreign firms access to high-potential opportunities.
Also read: Do You Need a Local Partner for a Representative Office in Indonesia?
License Validity and Renewal
BUJKA licenses are valid for 3 years and can be extended. Initiate renewal at least 60 days before expiry to ensure continuity. Updated documentation and a renewal fee apply.
Also read: Required Licenses and Permits for a Foreign Representative Office in Indonesia
Common Challenges and How to Avoid Them
Foreign companies often struggle with:
- Certification delays
- Misinterpretation of joint operation rules
- Domicile documentation issues
These issues can lead to lengthy delays or application rejection. Local expertise is key to streamlining the process.
Also read: Common Mistakes When Opening a Representative Office in Indonesia: Complete Guide from InvestinAsia
Smooth Setup with InvestinAsia
Setting up a BUJKA is intricate. But with InvestinAsia’s Representative Office Setup Service, foreign construction firms can navigate legal, technical, and compliance challenges effortlessly.
InvestinAsia offers:
- End-to-end BUJKA licensing
- Office space sourcing and verification
- Tax and legal compliance
- Fast-track certification assistance (SKA, SBU)
Our localized expertise ensures that your business is not only legally compliant but also strategically positioned to succeed in Indonesia’s infrastructure boom.
Ready to enter Indonesia’s construction market?
Partner with InvestinAsia and get started the right way—faster, legally, and with full confidence.
Frequently Asked Questions (FAQs)
What is BUJKA in Indonesia?
BUJKA (Badan Usaha Jasa Konstruksi Asing) is a representative office for foreign construction companies in Indonesia.
Can a BUJKA operate independently?
No. BUJKAs must form a joint operation with a licensed Indonesian construction company for every project.
Is capital investment required for a BUJKA?
No, unlike PT PMA, there is no paid-up capital requirement for BUJKA setup.
How long does it take to set up a BUJKA?
On average, 4–6 weeks including certification, document preparation, and OSS licensing.
What types of projects can a BUJKA handle?
Only high-risk, high-cost, and high-technology projects, as defined by Indonesian regulation.
Can a foreigner be appointed as Chief Representative Officer?
Yes. The Chief Rep can be either a foreign or Indonesian national, subject to visa and work permit rules.
Is BUJKA licensing renewable?
Yes. Licenses are valid for 3 years and can be renewed with updated documentation.
