GENERAL PROCEDURE

FOR ESTABLISHMENT OF REPRESENTATIVE OFFICE CONTRACTOR

1. OBJECTIVES
The purpose and objective of this procedure is to provide sufficient information on the procedure of and documents needed for the establishment of Representative Office of Foreign Construction Company in Indonesia.

2. SCOPE
The procedure set forth in this document is based on relevant regulations and common practices in Indonesian governmental institution with a note that said government institution in a different region may have a different policy concerning the required documents. These procedure shall only apply to the establishment process of Representative Office of Foreign Construction Company in Indonesia under the Ministry of Public Work started from submitting the Application of the Representative Office of Foreign Construction Company to the obtaining of Company Register (TDP) of the authorized Trade Service. This documents do not describes the processes after the obtaining of TDP, the processes in obtaining technical licenses or permits.

3. ABBREVIATION
The following abbreviations shall be interpreted as follows:

3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7.

LPJK

(Lembaga Pengembangan Jasa Konstruksi) IPBUJKA (Izin Perwakilan Badan Usaha Jasa Konstruksi Asing) Rep.Office NPWP KPP SKDP TDP (Nomor Pokok Wajib Pajak) (Kantor Pelayanan Pajak) (Surat Keterangan Domisili Perusahaan) (Tanda Daftar Perusahaan)

: Construction Service Development Institution : Foreign Construction Service Entity Representative Office Permit : Foreign Trade Company Representative Office : Taxpayers Number : Tax Office : Domicile Certificate : Company Register

4. REFERENCE
4.1. Law Number 3 of the year 1982 concerning the Compulsory Company Registration; 4.2. Minister of Public Works Decree Number 05/PRT/M/2011 concerning the Guidelines on Granting of Foreign Constuction Service Entity Representative Office Permit; 4.3. Minister of Trade Number 37/M-DAG/PER/9/2007 concerning the Implementation of the Company Register; 4.4. Directorate General of Taxation Decree number 44/PJ/2008 concerning the Procedure of Taxpayers Number Registration and/or the Taxable Entrepreneur Confirmation, the Change and Transfer of Taxable Entreperneurs and/or Taxpayers Data and its amendments.

5. PROCEDURES
5.1 Submission of Application Letter The Representation Office Application Letter shall be submitted to the Ministry of Public Works which shall be enclosed with the supporting documents as follows: a. The Power of Attorney given by the Head of Rep-Office; b. Two (2) copies of Identity Card of the Attorney/Proxy; c. The Deed of Establishment of the Principal Office of the Foreign Construction Company (in the country of origin); d. The Company Profile of the Foreign Construction Company; e. The Letter of Recommendation from the representative of the Contractors country of origin in Indonesia which clarify that the Foreign Construction Company (Principal) is legally registered and have good reputation; f. The copy of the valid Construction Business Permit of the Foreign Construction Company (Principal); g. The copy of the valid capability valuation of the Foreign Construction Company; h. Certificate of the Competency Standardization of the Foreign Construction Company issued by National Agency (LPJK Nasional); i. Letter of Appointment from the Foreign Construction Company (Principal) which appoint the Head of the Representative Office in Indonesia (Letter Appointment); j. The most recent Financial Statement of the Foreign Construction Company (Principal); k. The Copy of Passport/ID-card of the Head of the Representative Office; l. The Curriculum Vitae of the head of Rep-Office; m. The Domicile Certificate of the Representative Office; and The adminstration fees of the Foreign Construction Company establishment are as follows : a. For construction planning/supervising consultation service are ekuivalent with US$5,000.00; b. For construction contractor service are equivalent with US$ 10,000.00. The payment of the administration fee can be done after the applicant obtain the Payment Order issued by the the Minister of Public Work. Internally, Service Construction work unit in the Ministry of Public Work will then verify the application documents and conduct field verification. The Permit for Representative Office of Foreign Construction Company shall be issued in the form of Certificate within 10 working days after the complete document is submitted. The permit is valid for a period of 3 (three) years and can be extended. 5.2 Obtaining Standardization Certificate from LPJK LPJK will then process the Standardization Certificate internally through the following Process : a. The Standardization Certificate issued by LPJK which lists the standardization on the competence, classification, and qualification of the Foreign Construction Company. b. LPJK shall evaluate the Application Letter within 14 working days period to rate the competence and qualification of the Constructor which followed by registration by LPJK and report such evaluation and registration to the Minister of Public Works; 5.3 Obtaining SKDP SKDP is issued by the sub-district where the Representative Office of Foreign Construction Company is domiciled. The SKDP is needed for the obtaining of NPWP and TDP of the Representative Office of Foreign Company and mostly be valid for one (1) year. The documents needed for the obtaining of SKDP are as follows :

a. b. c. d. e.

Copy of the IPBUJKA; Statement Letter from the Building Management (if located in Office Building); Information of the Head of the Representative Office; Identity Card (or Passport for non-Indonesian) of the Head of Representative Office; Power of Attorney (if such application executed by third party).

Some sub-district might require more documents. The SKDP will be issued in approximately 4 (four) working days. 5.4 Obtaining of NPWP NPWP is issued by the KPP in the region where the Representative Office of Foreign Construction Company is domiciled. To obtain such NPWP, the NPWP of the Representative Executive is needed. The following documents are required : 5.4.1 For obtaining the NPWP of the member of the Representative Executive a. Identity Card (KTP) or Passport and KITAS of the applying Executive; b. Power of Attorney (if such application is executed by third party; and c. Completed NPWP application form. 5.4.2 For Obtaining the NPWP of the Repreentative Office of Foreign Company a. Copy of IPBUJKA; b. Copy of SKDP from sub-district office; c. Copy of the NPWP of the Representative Executive; d. Copy of the Identity Card/KTP or Passport and KITAS of the Representative Office; e. Power of Attorney; and f. Completed NPWP Application form.

Most KPP will issue NPWP card after three (3) days from the receiving completed document.

5.5 Obtaining TDP TDP is issued by the Trade Service of the Municipal or Regency where the Representative Office of Foreign Construction Company is Domiciled. The following Documents are needed: a. b. c. d. e. Copy of IPBUJKA; Copy of other Permit (if any); Copy of the SKDP from sub-district; Statement Letter from the building management (if domiciled in a building); Copy of the Identity Card/KTP (or Passport for Foreign National) of the Representative Executive; f. Copy of Letter of Appointment for the Representative Executive from the Principal Company; g. Completed application form duly stamped and signed by the Director; and h. Power of Attorney and Identity Card (KTP) of the Proxy (if the Company Registration executed by the third Party) TDP will be issued after two (2) weeks and shall be valid for five (5) years. The extension of TDP need to be done at least three (3) month before the expiry date.

PERMIT AND LICENSES CHECKLIST No. I. 1. Application Letter for Representative Office of Foreign Construction Company addressed to the Head of the Construction Business and Institutional Development Center 2. The Power of Attorney given by the Head of Rep-Office; 3. Two (2) copies of Identity Card of the Attorney/Proxy; 4. The Deed of Establishment of the Principal Office (in the country of origin); The Letter of Statement from the Republic of Indonesia representative in the Contractors country of origin which clarify the existence of the Contractors Business Entity; Letter of Appointment from the Principal Company which appoint the Head of the Representative Office in Indonesia ( Letter Appointment) The Curriculum Vitae of the head of Rep-Office; The list of the previous project done by the Foreign Construction Company; The brochure of the Foreign Construction Company; The Copy of Passport of the Head of the Representative Office; The Domicile Certificate of the Representative Office; and The Receipt of the administration fees payment. : : : APPLICATION LETTER : DOCUMENTS Completed ** yes no

5.

6.

7. 8. 9. 10. 11. 12.

: : : : : : : :

II. OBTAINING SKDP 1. Copy of the IPBUJKA; 2. Domicile Letter from the Building Management (if located in Office Building); :

3. 4.

Information of the Head of the Representative Office; Identity Card/KTP (or Passport for non-Indonesian) of the Representative Executive of the Company; Power of Attorney (if such application executed by third party).

: :

5.

III. OBTAINING NPWP OF REPRESENTATIVE EXECUTIVE 1. Identity Card (KTP) or Passport and KITAS of the applying Executive; Power of Attorney; and Completed NPWP Application form. :

2. 3.

: :

IV. OBTAINING NPWP OF COMPANY 1. Copy of IPBUJKA; 2. 3. 4. 5. 6. Copy of SKDP from sub-district office; Copy of the NPWP of the Representative Executive; Copy of the Identity Card/KTP or Passport and KITAS of the Representative Executive; Power of Attorney; and Completed NPWP Application form. : : : : : :

V. OBTAINING TDP 1. 2. Copy of other Technical Permit (if any); 3. 4. Copy of the SKDP from sub-district; Statement Letter from the building management (if domiciled in a building); Copy of the Identity Card/KTP (or Passport for foreign national) of the Representative Executive; Copy of Letter of Appointment for the Representative Executive from the Principal Company; : : Copy of IPBUJKA; : :

5.

6.

7.

Completed application form duly stamped and signed by the Representative Executive; and Power of Attorney and Identity Card/KTP of the Proxy (if the Company Registration executed by the third Party)

8.

SCHEME OF ESTABLISHMENT Ministry of Public Works

Submitting Application Letter

Application Letter & Doc I

Issuance of IPBUJKA

Sub-District Office

LPJK

Standard Certification

Certification and Evaluation

Applying for SKDP

Doc II

Obtaining SKDP

Tax Office

Obtain the NPWP of Company

Apply for NPWP of Company

Application Form & Doc IV

Obtain the NPWP of the Head

Apply for NPWP of the Application Form & Head

Doc III

Trade and Industry Service

Apply for TDP Application

Form & Doc V

Obtain the TDP

ESTIMATED TIME Date Rep Office Certificate SKDP NPWP Head NPWP Rep Office TDP Day in this table shall be working days Started from the obtaining of Application of The Representative Office of Foreign Company Acceptance Receipt formal process to obtain TDP supposed to be 1 month (30 days) however, some officials agreed to receive under table money to accelerate the process