1.      When undertaking the project, the construction representative office BUJKA must form a consortium (JO) with a large local B-level construction company in Indonesia, and sign and execute the project contract in the form of a consortium.

2.      The project contract amount of the local construction company in Indonesia is at least 30%.

3.      There are two modes of cooperation of the consortium:

–  KSO Administratif

A compact consortium is to unify all external business and operate in the name of the consortium, not the members of the consortium. Therefore, the responsibility for the project shall be borne by the consortium as a whole. The characteristic of the compact consortium is to set up an independent account book and invoice and collect the owner in the name of the consortium. All project income invoices are issued to the consortium, and the income of the consortium can only be distributed to the members of the consortium after the income of the consortium is paid. Therefore, the compact consortium needs to apply for a consortium tax card (NPWP), open a consortium bank account, and apply for general tax (PKP).

– KSO Non-Administratif

The loose cooperation model is that the members of all parties cooperate with each other in accordance with the agreement of the contract, but still maintain their own independent operation. The members of the consortium invoice and collect the money from the owner and calculate the cost of the project. The loose consortium does not have a unified organizational management organization within the specified period of the contract, and there is no need to set up a separate consortium book. Therefore, it is not necessary to apply for a consortium tax card (NPWP), open a consortium bank account, and apply for general taxpayer qualification (PKP).

4.      The construction representative office, as the leader of the consortium, is required to have a building qualification certificate SBU and bear 2.65% withholding tax PPh 4(2) at the time of collection. Without a construction qualification certificate SBU, you will be responsible for 4% withholding tax PPh 4(2).