BUJK PMA– Badan Usaha Jasa Konstruksi Penanaman Modal Asing
Furthermore, a BUJK PMA is a joint venture between foreign and local construction firms formed as a Limited Liability Company to facilitate international investment in the local industry.
In addition, foreign ownership is capped at 67% per Ministerial Regulation No. 03/PRT/M/2016, and foreign entities must possess a B2-qualified Construction Service Business Entity Certificate (SBU).
Moreover, local partners must secure 33% ownership by holding an SBU B2 and demonstrating work experience worth 83.31 billion within the last ten years.
Every construction services business entity (BUJK) established in the context of Foreign Investment (PMA) must fulfill business licensing requirements, as stipulated by Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing.
Meanwhile, the rules regarding foreign companies holding SBU B2 are regulated in the Construction Services Development Agency (LPJK) Regulation.
Foreign Share
Joint venture (Joint Venture) maximum foreign shares 67% vs local 33%
The essence of the LPJK Regulation consists of the following:
1) The maximum foreign share limit is 67%, which means that local companies must own 33% of local shares.
2) Based on the document provided, the minimum paid-up capital requirement for a PT PMA is Rp2.5 billion. And the minimum share value per shareholder is Rp10 million. There is no information listed regarding requirements for domestic company shares, SBU classifications, or experience values worth 83.31 billion.
3) Therefore, BUJK PMA must conduct a Joint Venture or KSO with a local company that already has SBU B2 with fields and sub-fields in accordance with the fields and sub-sectors of the PMA BUJK.
After conducting a Join Operation or KSO with a local company, other requirements such as:
– The expert (manpower) has a certificate of main expert expertise (SKA Expert Utama) from the LPJK.
– Registered as a member (KTA) of an association registered with the LPJK
– Make a business entity certificate (SBU B2) using experience or a contract from a local company that owns 33% of the shares
– Make a Construction Services Business Permit (IUJK) from LPJK
Classification and Qualification of Foreign Investment Construction Service Business Entities such us :
- Construction Implementation Services – New applications can only be awarded a B2 qualification. And then, for changes or extensions, B1 / B2 qualifications can be given.
- Construction Planning and Supervision Services – A new application, change or extension can only be awarded a B qualification.
- Integrated Construction Services – New applications can only be awarded a B2 qualification. For changes or extensions, qualifications can be given B1 / B2.
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