Step-by-Step Guide to Register BUJKA License for a Foreign Construction Company in Indonesia

Indonesia’s construction industry has become a magnet for global investors, thanks to its rapid urbanization, ambitious infrastructure projects, and strong demand for engineering expertise. Foreign contractors—ranging from architecture and design firms to large-scale construction companies—are increasingly looking for ways to enter the Indonesian market.

For many, the challenge lies in the capital requirements of PT PMA (foreign-owned company), which can be too steep at the early stage of entry. The solution? Establishing a BUJKA representative office.

This article provides a step-by-step guide to registering the BUJKA License in Indonesia, outlining the requirements, process, compliance obligations, and strategic recommendations for setting up in the right city.

Why Choose BUJKA License for Market Entry

A BUJKA license allows a foreign construction company to establish a representative office in Indonesia. Unlike PT PMA, it does not require paid-up capital of IDR 10 billion.

• Scope of Work: BUJKA can only handle large, complex, and high-value projects.
• Partnership Requirement: Every project must be executed in joint operation (JO) with a local Indonesian construction company (BUJKN).
• Risk Classification: Under GR No. 28/2025, BUJKA is categorized as medium-high risk in KBLI. This means it requires both a Business Identification Number (NIB) and a Standard Certificate before operations can begin.

This pathway makes BUJKA a practical option for foreign contractors wanting to enter Indonesia without heavy capital requirements, while still complying with national regulations.

Requirements for BUJKA License

Foreign contractors must meet specific requirements to qualify for a BUJKA license. These can be grouped into legal, technical, financial, and administrative criteria.

1. Legal Requirements

• Articles of Association and Incorporation Certificate of the parent company abroad.
• Power of Attorney or Appointment Letter for the local representative.

2. Technical Requirements

• Proven experience in large-scale or complex construction projects.
• Certificates of competence for engineers, such as SKA (Sertifikat Keahlian) or SKT (Sertifikat Keterampilan).
• Membership in relevant industry associations may be required.

3. Financial Requirements

• Evidence of handling cumulative projects valued at IDR 250 billion, OR
• A single project worth at least IDR 83.3 billion.

4. Administrative Requirements

• Registered office address.
• Registration in the OSS system under the appropriate KBLI code (medium-high risk classification).

Step-by-Step Registration Process

Step 1: Determine the KBLI Code

Select the appropriate KBLI classification for your construction services. Since BUJKA falls under medium-high risk, ensure compliance with OSS-RBA.

Step 2: Prepare Documentation

Compile the parent company documents, technical certifications (SKA/SKT), and financial proof of project experience.

Step 3: Submit Application via OSS-RBA

Apply online through Indonesia’s OSS-RBA system. Include all supporting documents for review.

Step 4: Verification and Issuance of Standard Certificate

Authorities will verify the documents. For medium-high risk activities, a Standard Certificate is required before operations can start.

Step 5: Appoint Local Partner for Joint Operation

Once licensed, sign a Joint Operation (JO) agreement with a licensed BUJKN for each project.

Step 6: Approval and Operational Start

Upon completion, the BUJKA can officially operate and bid for eligible projects.

Estimated timeline: 2–3 months, depending on document readiness and verification process.

Compliance After Registration

Obtaining the license is only the beginning. BUJKA offices must maintain ongoing compliance, including:

• Construction activity report – Regular activity reports through OSS.
• Annual surveillance construction activity held by the LSBU institution 
• Tax Obligations – Compliance with Corporate Income Tax (CIT), VAT, and withholding tax.
• Employment Compliance – Registering employees with BPJS Kesehatan and BPJS Ketenagakerjaan.
• Certification Renewal – Ensuring SKA/SKT and technical certifications remain valid.
• Joint Operation Reviews – Each project agreement with BUJKN is subject to verification.

Failure to comply may result in fines or suspension of the BUJKA license.

Recommended Cities for a Construction Representative Office

Choosing the right city for your BUJKA office can shape your market success. Here are some strategic locations for foreign contractors:

Jakarta (Main Business City)

• Indonesia’s capital and main business hub.
• Close access to government ministries and regulatory bodies.
• Best for companies targeting national-scale infrastructure projects and headquarters operations.

Surabaya, East Java

• The country’s second-largest city and a logistics hub for Eastern Indonesia.
• Strong base for industrial construction, port projects, and manufacturing facilities.
• Lower operational costs compared to Jakarta.

Recommendation: Many contractors choose Jakarta as HQ for regulatory ease, while establishing operational branches in Surabaya to tap into regional markets.

The BUJKA license provides a clear pathway for foreign construction companies to participate in Indonesia’s large-scale infrastructure projects without meeting PT PMA’s capital requirements. By following the step-by-step registration process, meeting medium-high risk KBLI requirements, and strategically choosing the right city, contractors can establish a strong presence in Indonesia.

📞 Business Hub Asia assists foreign investors with BUJKA registration, compliance, and strategic advisory. Contact us today for a free consultation and let us guide your market entry in Indonesia’s construction sector.