The authority to provide license on the establishment of Representative office (RO) in Construction is Department of Public Work or an official appointed on behalf of the Minister of Public Work (“MoPW”).
Scope of Work
The scope of works of public works representative office are to include:
Undertaking construction services and/or engineering consulting services;
Promoting and securing contracts in its own right of on behalf of its principal company;
Establishing contracts with Indonesian individuals, companies or government agencies in an attempt to explore potential market for engineering construction and/or consulting services on behalf of the principal company
It is essential to know that the implementation of project by representative office in construction area should be jointly operated with reputable local partner.
Requirement
For the establishment of Representative office in construction there are some required documents shall be fulfilled namely as follow :
- Company Profile
- Classification and qualification of the company
- Record of company’s experiences and the value of the project handled
- Recommendation Letter from respective embassy of the planned rep. office in Indonesia
- Appointment Letter for the Rep. office from the head quarter company
- Appointment Letter for the Chief of Representative
- Receipt of administration cost
- Curriculum Vitae of the chief of representative
- Application Letter
- Power of Attorney (if the establishment process is carried out by proxy)
- Domicile Letter from building management (if necessary)
Establishment Process
The Applicant submits required documents to the MoPW. After that, MopW will review all the required document above mentioned. The applicant should pay administration cost in the amount which equivalent with US$ 5.000,00 for the construction company engages in services and US$ 10.000,00 for the construction company engages as contractor should
If all requirement have been submitted than MoPW will review all the documents. Should there any incomplete requirement, MoPW will inform the Applicant. Once all requirements are completed, within more less one week the Department of Public Work will issue an approval Letter.
After the approval letter is issued, the applicant then apply for the Legal domicile letter in the respective sub district (Kelurahan). The requirement for the legal domicile arrangement are as follow :
- Approval Letter from MoPW
- Lease agreement with building management
- Information Letter from the building management informing that the related RO is located in its building
- Identity of the Chief of Representative
- Power of Attorney (should the arrangement carry out by proxy)
It is essential to note that the office location of any business legal entity in Indonesia should be in business area. No residents or other location other than business area are allowed for business office location. The arrangement for legal domicile will take within 1 (one) or 2 (two) days.
After the arrangement of Legal Domicile Letter, the applicant will arrange for the Tax Identity number. Tax identity number are arranged in the respective tax office in the respective locations. The Applicant will be provided with standard registration form from the tax office. The requirements are as the same as the requirement for Legal Domicile arrangement added with copy of Domicile Letter. The letter will be issued within 2 (two) or 3 (three) days
After the arrangement of Tax Identity Number then the applicant will arrange for company Registry. The Applicant will be provided with standard registration form from the department of Trade. The requirements are as the same as the requirement for tax identity number added with the tax identity number issued by tax office. Company registry will beissued within maximum 10 (ten) days.
Some other documents, if necessary, like Indonesian chamber of commerce membership, Association for the construction business will also be essential for the further operation of the RO.