As discussed in our previous column, on January 2 the Investment Authority (BKPM) enacted Regulation 13/2017 regarding Guidelines and Procedures for Investment Licensing and Facilities (BKPM Regulation). In this column we will discuss the different types of representative offices regulated by the BKPM Regulation. Under the new regulation, BKPM added one type of representative office, namely the Oil and Gas Representative Office. We will discuss all four types of representative offices under the BKPM Regulation.
The BKPM Regulation regulates the following types of representative offices:
The activities of a KPPA are limited to the following activities:
The KPPA is not allowed to perform the following activities:
Besides above limitation in activities, the following restrictions apply:
There are three types of KP3A, namely:
Above types of KP3A are not allowed to perform any trading activities or sales activities. A KP3A is allowed to open branch office (this is not possible under a KPPA) and may be located in provincial capital cities or in any other city / district within Indonesia.
A BUJKA can only opened by construction companies with a large business qualification (B1 or B2). Other than with a KPPA and KP3A, a BUJKA is allowed perform projects in Indonesia. In order to perform projects must establish a Joint Operation with a local construction company (BUJK), which is 100% owned by Indonesian shareholders.
This permit of the BUJKA is valid for a maximum of 3 years and may be extended. For application of a new BUKA license, renewal or replacement, there is an administrative fee of USD5,000 or USD10,000 depending on the business field in which the BUJKA is active.
This representative office is added to the BKPM Regulation and was previously not regulated by BKPM. Companies which are active in the business field of oil and gas may now open a KPPA MIGAS representative office.
The BKPM Regulation does not regulate the exact restrictions of a KPPA MIGAS, however we assume these are similar as regulated under the general KPPA.
This permit may be valid for 3 years and may be extended.