BUJK PMA– Badan Usaha Jasa Konstruksi Penanaman Modal Asing

A construction service company established in the framework of foreign investment (PMA) is a joint venture between a foreign construction service company (BUJK ASING) and a local construction service company (BUJK Nasional) in the form of a Limited Liability Company (PT) so it is commonly called PT PMA or BUJK PMA.

The provisions for granting Construction Services Business License (IUJK) BUJK PMA are based on the regulation of Ministerial Regulation No. 03 / PRT / M / 2016 concerning Technical Guidelines for Granting Foreign Investment Construction Services Business Permits.

The limit of foreign share ownership in a foreign investment construction service business entity is limited to a maximum of 67%.

The government regulation for foreign construction companies is that they must have a B2 Construction Service Business Entity Certificate (SBU with B2 qualification).

Meanwhile, the rules regarding foreign companies holding SBU B2 are regulated in the Construction Services Development Agency (LPJK) Regulation.

Joint venture (Joint Venture) maximum foreign shares 67% vs local 33%

The essence of the LPJK Regulation includes the following:

1) the maximum foreign share limit is 67%, which means that local companies must own 33% of local shares.

2) A domestic company that owns 33% of shares must be a company that has SBU B2 with contract experience or work experience worth 83.31 billion in the last 10 years.

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

1. Construction Implementation Services
   New applications can only be awarded a B2 qualification. For changes or extensions, B1 / B2 qualifications can be given.
2. Construction Planning & Supervision Services
   A new application, change or extension can only be awarded a B qualification.
3. 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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