Foreign Construction Services Companies in Indonesia

As a developing country, Indonesia has many infrastructure construction projects which many foreign construction companies are interested to get involved in. There are two ways for a foreign construction company to provide construction services in Indonesia: by establishing (i) a foreign construction services representative office ("Rep Office"); or (ii) a joint venture company in the field of construction services ("PMA Construction Company").

For both options, the foreign construction company will require the participation of a local Indonesian construction company. This will either be as the local shareholder of the joint venture construction company or the local partner in a "joint operation" that must be formed following the establishment of a Rep Office.