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Establishing a Construction Services Company in Indonesia – Indoservice

Diposting pada 8 Juni 2024 oleh admin / Dilihat: 1 kali

Establishing a Construction Services Company in Indonesia – Buildings are one of the most important basic human needs. Being part of clothing and food, shelter or buildings is a benchmark for whether humans have a decent life or not. Currently, there are still many people, especially in big cities, who cannot fulfill the basic needs of these three elements of human survival, so many end up without a permanent place to live.

In order to help people live a better life, there are now many companies that handle construction services. Good for building houses, buildings and even roads. Based on Negative Investment List (DNI), foreign companies can own construction companies with conditions. The company can take the form of a consulting company, contractor, or both (integrated construction services). Companies providing construction services may only own 67 and 70 percent of their shares (depending on whether they come from an ASEAN country or not).

Indonesian Construction Company Services

The project value cannot be less than IDR 50 billion (~$3.71 million). If you want to open a construction consulting service, the project value must be more than IDR 10 billion (~ $743,605). Only small and medium local companies can set up construction businesses with project values ​​less than the above figures.

Construction service companies, both building construction services and other construction services, have several indicators that show that the company has good quality construction work, so that it is able to provide maximum work results.

Establishment of a construction company

Following are the steps to set up a construction business in Indonesia:

1. Type of construction services business

Companies can provide consulting services, construction work, and/or integrated services. In addition, the type of business entity can be a construction business representative office or a PMA construction company.

2. Classification of construction businesses

The classification in question is civil construction, building construction, electrical installations, or special construction, then also determine the subclassification of the business that will be carried out.

3. Have local business partners

Due to ownership regulations, contractor business entities must establish companies with local residents. This structure is known as a PT-PMA, or joint venture. To establish a company, at least two shareholders are required (one of whom is a foreign citizen). If the person concerned lives in Indonesia, a KITAS and NPWP (Taxpayer Identification Number) are required.

The company has a minimum investment amount where 25% of the total investment is paid in as initial capital. The process of establishing a company takes approximately 2 months through BKPM (Investment Coordinating Board).

Some conditions for setting up a company:

  • Business license and principle permit from BKPM
  • Domicile letter
  • Deed of Incorporation
  • NIB (Business Identification Number)
  • NPWP (Taxpayer Identification Number)

4. KTA (Construction Association Member Identification Card)

Based on the construction services category, having a KTA is mandatory. Here are some of the memberships:

  • Gapeksi (Association of Indonesian National Construction Companies), if your service category is contractor
  • Gapenri (Indonesian National Association of Design and Build Companies), if your service category is integrated services (EPC)
  • Inkindo (National Association of Indonesian Consultants), if your construction service category is construction consultant

5. Certification

As a construction company, it is mandatory to have an SBU (Business Entity Certificate) or business entity certificate which contains business classification and subclassification data. SBU can be obtained from LPJKN (Construction Services Development Institute). Apart from that, professional workers such as architects or engineers also need a SKA (Certificate of Expertise)

6. Construction business permit

Construction service companies must have a business permit or IUJK (Construction Services Business Permit).

Construction Services Business License Requirements:

  • Fill out the IUJK application form
  • Deed of establishment of a business entity (especially for applicants who have already formed a business entity)
  • NIB and original documents must be presented
  • List of commissioners and directors of construction services companies
  • List of non-technical employees
  • List of technical staff and their duties
  • List of equipment, supplies, and construction equipment ownership
  • Financial reporting for construction services companies
  • Work experience from the company
  • Two 4×6 size photographs for directors or branch heads or heads of construction service companies
  • Office space and ownership certificate
  • SBU and original documents must be presented
  • NPWP
  • KTP of construction service company management
  • KTP of all non-technical and technical personnel
  • Engineering work experience letter
  • Recommendations from the City Public Works Department where the construction service company is located
  • Request for NKTT approval
  • Engineering Diploma
  • Proof of membership of the Individual Professional Association of Construction Services Engineering Personnel

Legal License Construction

If you experience difficulties and ignorance in processing it Establishment of a Construction Services Business Legal Entity in Indonesiarelated to the procedures and legal basis that apply in Indonesia.

We Indo Servicesa company secretarial and licensing services consultant who can assist you in setting up a company in Indonesia and trusted and experienced business-related licensing in Indonesia, is committed to providing the best and fastest service to meet your needs. Contact us now for a special offer.

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Establishing a Construction Services Company in Indonesia – Indoservice

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