Presumably the company can re-apply for the license by going through the same process. If the BUJKA or BUJK PMA fails to fulfill those commitments before the deadline, the “temporary” permit will be cancelled. The main commitment to be fulfilled is obtaining the SBU from LPJK. They must then fulfill certain commitments within 30 days after the issuance of the “temporary” permit before they can obtain the effective BUJKA or PMA construction permits. Under Regulation 9, BUJKA and BUJK PMA now first obtain a Business Identity Number (“ NIB“) from the OSS system followed by a “temporary” BUJKA or BUJK PMA construction permit. This process could take more than a month. In the past, BUJKAs and BUJK PMAs first had to secure membership in a construction association and secure a Business Entity Certificate (“ SBU“) from the National Construction Development Institution (“ LPJK“) before they could apply for construction permits. See our previous client alert on the OSS system here. Similar to other licenses issued through OSS, construction permits for BUJKA and BUJK PMA can be issued immediately, but they will only be effective once certain commitments are fulfilled. However, the OSS system is currently maintained by BKPM. Accordingly, Regulation 9 also revoked the delegation of construction permits issuance from MOPWH to BKPM, which was set out in MOPWH Regulation No. Since the introduction of the Online Single Submission (“ OSS“) system regulatory framework in 2018, the main construction permits for BUJKA and BUJK PMA are issued through the OSS instead of by the Investment Coordinating Board (“ BKPM“), and are subject to subsequent compliance audits. What’s New? Licenses Issuance System and Sequence However, the general rule above is still applicable.
03/PRT/M/2016 as amended (for BUJK PMA) (“ Old MOPWH Regulations“). Regulation 9 revoked the previous regulations, i.e., MOPWH Regulations No. In addition, BUJKAs were only allowed to do work that fulfilled the cumulative criteria of requiring advanced technology, and being high risk and high value. Under the previous regulations, the Indonesian local partner in both the BUJKA and BUJK PMA structures was generally required to be a 100% Indonesianowned construction company (except for certain exemptions applicable to BUJKAs). (b) a representative office (“ BUJKA“), i.e., by establishing a BUJKA in Indonesia and forming a joint operation/consortium with a local construction company to implement a particular project (a) a joint venture company – in the form of foreign investment construction company (“ BUJK PMA“) with an Indonesian local partner
Overview on Foreign Contractors in IndonesiaĪs a general rule, a foreign contractor can operate in Indonesia through either: Like previous regulations on similar subjects, Regulation 9 requires foreign contractors to engage as their business partners 100% Indonesian-owned local construction companies. 9 of 2019 on Guidelines for Foreign Construction Services Business Entities (“ Regulation 9“), came into force on 13 June 2019. A new Minister of Public Works and Housing (“ MOPWH“) regulation, Regulation No.