Construction Business License in Indonesia (BUJKA)
Overview
Foreign Construction Services Business (BUJKA) is a license granted to foreign construction companies to open representative offices and run major construction projects in Indonesia, including project supervision activities to carry out engineering and design activities that support the construction process.
Business Hub Asia provides construction business license (BUJKA) services ranging from legal assistance, license applications to the Ministry of PUPR and BKPM, to drafting cooperation with local partners. Foreign construction companies can ensure legal, professional, and regulated operations in Indonesia.
Get Expert HelpKey Features
End-to-End Licensing Support
Complete assistance in applying for and obtaining BUJKA licenses from relevant agencies.
Partnership Structuring
Support in structuring official cooperation with the Local Construction Company (BUJKN) as a local partner.
Technical Qualification Compliance
Consultation and validation of the company's technical qualifications based on LPJK regulations.
Local Office Setup Assistance
Assistance in establishing a legal representative office address in Indonesia.
Regulatory and Legal Advisory
Comprehensive guidance on construction regulations and BUJKA's legal limitations.
Minimum Requirements
Company Legality
Deed of establishment and legality from country of origin
Appointment Documents
Letter of Intent & Letter of Appointment
Local Partnership
Cooperation agreement with National BUJK
Person in Charge
Letter of appointment of representative office PIC
Financial Records
Latest audited financial statement
Project Experience
Proof of at least 10 years of project experience in country of origin
Office Plan
Work plan, organizational structure, and legal address in Indonesia
Qualified Personnel
Experts with SKA/SKT recognized by LPJK
Process and Timeline
1
Consultation and Document Review
Initial evaluation of foreign company eligibility and legality documents. Estimated time: 3-5 working days.
2
Drafting of MoU with Local Construction Company (BUJKN)
Drafting of the agreement and operational cooperation between BUJKA and local partners. Estimated time: 5-7 working days.
3
Permit Submission to LPJK and Ministry of PUPR
Submitting documents required to obtain permits through the OSS system and LPJK for administrative and technical evaluation. Estimated time: 10-15 working days.
4
Technical Verification & Evaluation
Evaluation of documents, project experience, experts, and supporting facilities. Estimated time: 7-10 working days.
5
Issuance of BUJKA Certificate
Receive an official certificate as an operating license for foreign construction representative offices. Estimated time: 2-3 working days.
*The total estimated time to obtain a construction business license (BUJKA) is around 6-8 weeks.
Important Consideration
- BUJKA cannot stand alone in project implementation; it must partner with the National BUJK.
- BUJKA is only allowed for large-scale and high-value projects, according to PUPR classification.
- BUJKA management must be domiciled in Indonesia and have the appropriate residence permit.
- BUJKA licenses have a certain validity period and must be renewed if there is a change in legal entity or cooperation.
- The use of virtual office services is not allowed as the official BUJKA address.
Frequently Asked Questions
Is the BUJKA license directly applicable to construction projects in Indonesia?
No, it cannot. BUJKA is required to partner with a National BUJK to be able to carry out construction projects.
Is there a project value limit for BUJKA?
Yes, BUJKA can generally only work on projects with large value and high complexity. The minimum value of work that can be done by a Foreign Construction Services Business Entity (BUJKA) depends on the type of business. For construction consultancy services, the minimum annual sales value is Rp 10,000,000,000, (ten billion Rupiah) while for construction work business, the minimum amount is Rp 100,000,000,000. (one hundred billion Rupiah).
How long is the BUJKA license valid for?
The validity period of the BUJKA license is generally 3 years and can be extended with a performance evaluation.
Does BUJKA need to have local labor?
Yes, it is mandatory to have SKA or SKT-certified local labor as part of the technical requirements.
Can one foreign company open more than one BUJKA in Indonesia?
No, a foreign construction company is only allowed to have one BUJKA office in Indonesia.
Secure the Right Licenses for Your Operations
Ensure compliance with Indonesian regulations by obtaining the necessary business permits and sector-specific licenses.