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bidding EPC high way project in Jakarta

Last activity 05 July 2018 by abdulkhalil

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NhungPHAM

We are bidding a EPC high way project in Jakarta. We are vietnamese company. Someone can help me to know more about legal requirement for foreigner company carrying construction work in Indonesia. What about EPC contract? which local requirement following local laws on bidding,  import tax on equipment/ material, payment, variation order.... Thank you very much for replying. Nhung

lukereg

This forum sort of helps people with things like where to go with friends, schools and places to visit. Bidding on highway projects simply isn't what we are about. I would suggest the Indonesian government for answers, not some expats who live here and enjoy the sunshine.

zanzio

Hi Nhung,

You should be make a representative office in Jakarta PT PMA (foreign company).

In addition to the main requirements to be able to do business legally in Indonesia, there are benefits to be gained every foreign businessman who establish PT PMA, namely:

Can run all business activities legally in Indonesia with the same rights and obligations as the company or local PT
Easy access to participate in various tenders and business projects in Indonesia
Can be a direct sponsor to apply for a business visa, IMTA, or KITAS for foreign workers being assigned in Indonesia

Where Can Investors Establish PT PMA?

Basically, a PMA company can be established throughout Indonesia. However, the administrative affairs and applications of the establishment of the company are still handled by the headquarters of BKPM (Investment Coordinating Board) located in Jakarta.

In addition to having an office in Jakarta (especially for administration and correspondence), PT PMA can also establish branch offices in other cities in Indonesia that match its business goals and objectives.

President Joko Widodo reminded the head of the region to ease the investment licensing process and provide wide opportunities for industrial and manufacturing sector investors to encourage increased labor-intensive workforce.

The wishes of potential domestic and foreign investors are easiness in the process of permit, legal certainty, and security in the business. Thus, the government seeks to provide convenience. One of them by removing a number of rules that are considered to hamper investment interest, both the central government and local government rules.

Fred

These projects are telephone numbers with a Dollar sign in front of them so why the devil would you ask on a forum?
The costs and potential profits/losses are massive and any company engaging in such work hires the best of the best in every field.
If you have to ask on a forum, forget it, you're wasting your time trying.

Harsh but true.

abdulkhalil

To be perfectly honest, I have quite a lot of experience in sealed tender bids, have submitted many in the past for major projects, but am not familiar with the process in Indonesia. Indonesia is one of those countries where they don't always play by the rules, and money talks if you know what I mean. Also, posting your query on this forum is quite frankly a waste of time because this is more of a blog site with a few English language teachers and retirees chatting about their daily life and who probably wouldn't have any such experience. My recommendation of course is to find an Indonesian partner and let them assist you, or concentrate on projects in other countries. I'd also suggest that even if the tender is open to non-Indonesian companies, that an Indonesian company will win the tender bid.

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