Overview
Representative office of Foreign Construction Service Business Entity (Badan Usaha Jasa Konstruksi Asing or ‘BUJKA’) is a Business Field that is established under the Foreign Construction Service Entity’s country of origin and is equalized within the status of other LLCs that work in the construction service business field. For a BUJKA to be established, the enterprise must own Business Entity Certificate (Sertifikat Badan Usaha or “SBU”), this certificate is published under the authority of the national-level of the Board of Management Development Institutions’ National Construction Services (“LPJK”). The activities and legislative process of the construction industry here in Indonesia is run by LPJK. While the execution for BUJKA’s SBU as proof is authorized under the Director of Registration and Legal Affairs of the National LPJK Implementing Agency.
As a continuance of our previous article ‘Representative Office: Details Please’. In this article, we’ll take a look at the LPJK Regulation 1/2015 on Foreign Construction Service Registration to base our explanation on BUJKA.
BUJKA’s Services and Classifications
BUJKA’s services include: Construction Planning and Supervision Services Business, Construction Implementation Services Business and Integrated Construction Services Business. These services are divided into several classifications where each requires its own certifications. These include:
With the classifications, consisting of:
The ‘Architectural Plan’ classification consists of further sub-classifications, which are described below:
a. Architectural Advisory and Pre-Design Services;
b. Architectural Design Services;
c. Building Maintenance and Feasibility Assessment Services;
d. Interior Design Services;
e. and Other Architectural Services.
The ‘Engineering Plan’ classification consists of further sub-classifications, which are described below:
a. Engineering Advisory and Consultancy Services;
b. Engineering Design Services for Foundation and Building Structure Construction;
c. Engineering Design Services for Water Civil Engineering Works;
d. Engineering Design Services for Transportation Civil Engineering Works;
e. Engineering Design Services for Mechanical and Electrical Work in Buildings;
f. Engineering Design Services for Industrial and Production Processes;
g. Advisory and Consultation Services Construction Engineering Services;
h. Other Engineering Design Services.
The ‘Spatial Planning Plan’ classification consists of further sub-classifications, which are described below:
a. Urban Planning and Design Services;
b. Regional Planning Services;
d. Building and Landscape Environmental Planning and Design Services;
e. Space Utilization Development Services.
The ‘Architectural Surveillance’ classification includes: contract administration supervisory services.
The ‘Engineering Surveillance’ classification consists of further sub-classifications, which are described below:
a. Building Construction Work Supervision Services;
b. Transportation Civil Enginnering Construction Work Supervision Services;
c. Water Civil Enginnering Construction Work Supervision Services; and
d. Supervision Services for Construction Work and Installation of Industrial Processes and Facilities
The ‘Spatial Planning Surveillance’ classification includes: spatial planning supervisory and controlling services.
The ‘Engineering Surveillance’ classification consists of further sub-classifications, which are described below:
a. Geological and Geophysical Prospectus Making Services;
b. Underground Survey Services;
c. Land Surface Survey Services
d. Map Making Services
e. Composition and Purity Level Testing and Analysis Services;
f. Physical Parameter Testing and Analysis Services;
g. Mechanical and Electrical System Testing and Analysis Services; and
h. Technical Inspection Services
The ‘Other Consultation Services’ classification consists of further sub-classifications, which are described below:
a.Environmental Consultancy Services;
b. Land and Building Value Estimation Consultancy Services;
c. Project Management Services Related to Building Construction;
d. Project Management Services Related to Construction of Transportation Civil Engineering Works;
e. Project Management Services Related to Construction of Water Civil Engineering Works;
f. Project Management Services Related to Construction of Other Civil Engineering Works;
g. Project Management Services Related to Construction Work Construction Processes and Indsutrial Facilities;
h. Project Management Services Related to Construction of Traffic Control System Works;
i. Integrated Engineering Services
With the classifications, consisting of:
‘Buildings’ classification consists of further sub-classifications, which are described below:
a. Single and Couple Residential Establishment;
b. Multi Or Multiple Occupancy Establishment;
c. Warehouse and Industrial Establishment;
d. Commercial Establishment;
e. Public Entertainment Establishment;
f. Hotel, Restaurant and Other Similiar Establishment;
g. Educational Establishment;
h. Medical Establishment;
i. Other Establishments.
‘Civil Buildings’ classification consists of further sub-classifications, which are described below:
a. Waterways, Ports, Dams and Other Water Resources Infrastructure;
b.Drinking Water and Waste Water Treatment Plants and Waste Processing Buildings;
c. Highways (Except Flyovers), Roads, Railways, and Airport Runways;
d. Bridges, Flyovers, Tunnels and Subways;
e. Long Distance Drinking Water Piping;
f. Long Distance Wastewater Piping;
g.Long Distance Oil And Gas Piping;
h. Local Drinking Water Piping;
i. Local Waste Water Piping;
j. Local Oil and Gas Pipelines;
k. Stadium Buildings for Outdoor Sports; and
i. Indoor Sports Facilities Buildings and Recreational Facilities.
‘Mechanical and Electrical Installation’ classification consists of further sub-classifications, which are described below:
a. Installation of Air Conditioning, Heating and Ventilation;
b. Installation of Water Pipes (Plumbing) in Buildings and Channels;
c. Installation of Gas Pipes in Buildings;
d. Insulation in Buildings;
e. Installation of Elevators and Walking Stairs;
f. Mining And Manufacturing;
g. Thermal, Pressure, Oil, Gas, Geothermal Installations (Engineering Work);
h. Installation of Transport Equipment and Lifting Equipment;
i. Piping, Gas and Energy Installation (Engineering Work);
j. Installation of Production Facilities, Oil and Gas Storage (Engineering Works);
k. All Power Electrical Power Plant Installations;
l. Electric Power Plant Installation Maximum Power 10 MW;
m. Installation of New and Renewable Energy Power Plants;
n. Installation of High Voltage/Extra High Voltage Electric Power Transmission Networks;
o. Telecommunication and/or Telephone Transmission Network Installation;
p. Medium Voltage Electric Power Distribution Network Installation;
q. Low Voltage Electric Power Distribution Network Installation;
r. Telecommunication and/or Telephone Distribution Network Installation;
s. Control and Instrumentation System Installation;
t. Building and Factory Electrical Power Installations; and
u. Other Electrical Installations.
‘Other Implementation Services’ classification consists of further sub-classifications, which are described below:
a. Construction and demolition equipment rental services for buildings or other civil works with operators;
b. Prefabricated Construction Assembly and Installation Services for Building Construction;
c. Services for Assembling and Installing Prefabricated Construction for Road, Bridge and Railway Construction;
d. Assembling and Installation Services for Prefabricated Construction for the Construction of Water Resources Infrastructure, Irrigation, Piers, Harbors, Rivers, Beaches and Clean Water, Waste and Garbage Processing Buildings (Incinerator)
‘Integrated Construction Services Business’ classification consists of further sub-classifications, which are described below:
a. Integrated Services for Transportation Infrastructure;
b. Integrated Services for Construction of Water Resources Infrastructure and Facilities, Water Distribution and Sanitation Works;
c. Integrated Services for Manufacturing Construction;
d. Integrated Services for Oil and Gas Facility Construction; and
e. Integrated Services for Building Construction.
BUJKA’s Business Classification
Under Article 9 of the LPJK regulation, Foreign Construction Service Business is classified under the ‘Big Business’ category. Where two sub-classes exist: B2 (Big 2) set for ‘Construction Implementation Services Business and Integrated Construction Services Business’ and B (Big) for ‘Construction Planning and Supervision Services Business’. The sub-classifications of these companies are then determined based on the company’s net worth, experience, and work force.
B2 Classification
The B2 classification which is determined for the ‘Construction Implementation Services Business and Integrated Construction Services Business’ category has several requirements. These are:
- Minimum net worth of Rp 50,000,000,000,- (billion)
- Having the work experience with the total cumulative value of minimum Rp 250,000,000,000,- that is obtained under 10 years or having the highest experience value of Rp. 83,330,000,000,- that is gained under 10 years period of time.
- Work force requirements between Construction Implementation Services Business and Integrated Construction Services Business differ. Below are the difference:
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Construction Implementation Services Business |
Integrated Construction Services Business |
|---|---|
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B Classification
The B classification which is determined for the ‘Construction Planning and Supervision Services Business’ category has several requirements. These are:
- Minimum net worth of Rp 500,000,000,- (million)
- Having worked in the Construction Planning and Supervision Services Business with the total cumulative value of minimum Rp 2,500,000,000,- (billion) under 10 years period of time
- The B classification’s work force requirements, include:
- 1 Permanent Experts owning the Work Skills Certificate (SKA) for maximum 2 sub-classifications of every business fields owned;
- 1 Person In Charge of Engineering (PJT) with Work Skills Certificate (SKA);
- 1 Person In Charge of Classification (PJK) for each classification owned; and
- 1 Person In Charge of Business Entity (PJBU).
Additionally, Permanent Experts can concur 2 sub-classifications (max.) as stated under the provisions of ‘Classifications/Sub-classifications of Work Skills Certificate (SKA) For Permanent Experts’ as regulated in Annex 2A.
Note:
- PJT: A permanent worker appointed by PJBU to be responsible for technical aspects in the operation of the construction services business entity.
- SKA: A certificate issued by LPJK and given to construction experts who have met competency requirements based on scientific discipline, function and/or certain skills.
- PJBU: The Head of the BUJKA Representative appointed by the parent company.
- PJK: A permanent expert appointed by the head of the Business Entity to be responsible for the technical aspects of a particular classification owned by the Business Entity in accordance with their expertise.
- Permanent Experts: Technical experts who work full time to be responsible for the technical aspects of certain subclassifications owned by the Business Entity in accordance with their expertise.
Closing Remarks
For further informations regarding the requirements and procedures of BUJKA, you can contact us at Selaras Law Firm (SLF) using the contacts provided below.
Email: contact@selaraslawfirm.com
Phone: +6281558523132 (English, Arabic, Turkish), +6281510118552 (Indonesian)
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