Public Works Representative Office

PUBLIC WORKS REPRESENTATIVE OFFICE ESTABLISHMENT (PWRO) IN INDONESIA

1. BASIC

  • Public Works Representative Office (PWRO) means a Legal entity that established and domiciled in Foreign Country, having representative Office in Indonesia and classified as the same as limited liability company that conduct business in construction services.
  • Construction Services defined as a Consultancy for construction works plan, implementation of Construction Works, and Consultancy for construction Supervision.
  • A PWRO permit means the permit to do business that given by the Indonesian government to the PWRO to conduct their activities for construction services in Indonesia.
  • Joint Operation is work cooperation between one or more PWRO with one or more local construction company, temporary to handle one or several projects and does not exist as a new legal entity in accordance with Indonesian laws.
  • Head of Representative means a person that appointed by the head office and have the authority to represent the interests of the company in Indonesia.
  • Certificate means:
    • Proof of acknowledgment for the classification and qualification for the competency and capabilities in the field of construction services for a legal person or legal entity;
    • Proof of recognition for the competency and ability of professional work skills and expertise of individuals in the field of construction services in accordance with the scientific disciplines and/or certain skills and/or functionality and/or specific expertise.
    • Permit for Construction Services (IUJK) means the license to do business in the field of construction services given by the Regency / City Government.
    • PWRO is permit to:
      • Undertake construction services and/or engineering consulting activities, which include civil, electrical, mechanical and architectural work. The PWRO must form a joint operation (JO) with an Indonesian construction company to execute either a Government or other projects;
      • Promote and secure contracts in its own right on behalf of its principal company;
      • Establish contact with Indonesian individuals, companies or Government institutions in an attempt to explore market potential for engineering construction and/or consulting services on behalf of the principal company;
      • Participate in pre-qualification bids for international projects through the JO;
      • Carry out other activities within the scope of work as defined in the construction contract up to the project completion.

Joint operation requirement

  • The Indonesian joint operation partner has to meet the following requirements:
    • Big Construction qualification;
    • Member of the Association that registered in the Development Institution of Construction Services (LPJK);
    • Have a Construction Business license (IUJK).

Official Retribution fee

  • This guarantee fee must be paid directly to the Indonesian Treasury. The amount of guarantee fees varies depending on the type of activities the PWRO is planning to carry out.
    • Consultant Construction Company : USD 5.000,00
    • Construction works (Contractor) : USD 10.000,00

2. REGULATION

  • Law No. 2 of 2017 concerning Construction Services;
  • Ministry of Public Works Regulation No. 10/PRT/M/2014 concerning guidelines to publish a Public Works Representative Office License;
  • Government Regulation No. 28 of 2000 concerning the business and role of public society of construction services (State Gazette of the Republic Indonesia No. 63 of 2000, statute book No. 3955) as amended by the Government Regulation No. 92 of 2010 (State Gazette of the Republic Indonesia No. 157 of 2010);
  • Government Regulation No. 29 of 2000 concerning the Implementation of Construction Service (State Gazette No. 64 of 2000, statute book No. 3957) as amended by Government Regulation No. 59 of 2010 (State Gazette No. 95 of 2010);
  • Government Regulation No. 30 of 2000 concerning the implementation of Construction Service development (State Gazette No. 65 of 2000, Statute Book No. 3957);
  • Presidential Regulation No. 36 of 2010 concerning the list of business fields closed and open with conditions in the field of Investment;
  • Regulation of the Minister of Public Works No. 08/PRT/M/2010 concerning the organization and administration of the ministry of public Works.
  • Regulation of the Minister of Public Works No. 28/PRT/M/2006 concerning Permit for Public works Representative Office;
  • Regulation of the Minister of Public Works No. 05/PRT/M/2011 concerning guidelines and requirements for public works representative office permit;
  • Regulation of the minister of Public Works No. 50/PRT/1991.
  • etc.

3. MAIN REQUIREMENTS FOR ESTABLISHMENT OF PWRO

  • Have the Certification for Construction Service (Contractor/EPC/Consultant);
  • Capital must be above IDR 50.000.000.000,- (Fifty Billion Indonesian Rupiah) for Contractor and EPC while IDR 2.500.000.000,- (Two Billion and Five Hundred Million Indonesian Rupiah) for consultant, that proved by the financial audit report conducted by a Certified Public Accountant;
  • Have Sufficient Work Experiences. For contractor or EPC must be above IDR 83.330.000.000,- per project or cummulative IDR 250.000.000.000 for the last 10 years. While for Consultant minimum IDR 2.500.000.000,- cummulative for the last 10 years.

ForĀ further information or assistance for PWRO arrangement, please do not hesitate to contact us at : info@remidian-bahureksa.com.