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How Fast to Set Up Construction Company in Indonesia

How Fast to Set Up Construction Company in Indonesia?

More and more companies are built in various fields, one of which is a construction company. In contrast to other types of companies, how fast to set up construction company in Indonesia is slightly different. If a company engaged in trading only requires a Trade Business License, the construction company also requires a Construction Service Business License (SIUJK).

Steps to obtain Construction Services Business License (SIUJK) can be divided into three stages:

  • PHASE 1: Certification of Experts (SKA) / Skilled (SKT)
  • PHASE 2: Certification of Business Entity (SBU)
  • PHASE 3: Management of SIUJK

Before discussing the above three phases related to how fast to set up construction company in Indonesia, first, make sure that you have standard documents. If your business is in the form of PT for example, the following documents already exist: deed of establishment of PT, SK Minister of Justice and Human Rights, Business Domicile Certificate, Taxpayer Tax Number, Trading Business License, Company Registration Number and Taxable Entrepreneur.

Second, determine the size of the project you will be working on – whether to work on small projects (under 500 million rupiah), medium projects (500 million to 10 billion rupiahs) or large scale projects (over 10 billion rupiah).

LPJK has made the company qualification with project value: K1, K2, K3, M1, M2, B1, and B2.

If your company is new to construction services, you have only two choices: choose a small (K1) or intermediate (M1) project. Your qualifications can later be upgraded according to your construction experience. If you choose a small qualification (K1) for example, you must have certain experience to be able to go up to qualification K2, K3 and so on.

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Document your experiences-contracts, project completion reports-as a reference for LPJKs to improve your qualifications in construction services.

PHASE 1: Certification of Experts (SKA) / Trampil (SKT)

Do you need SKA or SKT? It depends on the qualification of Construction Service Business License (IUJK) you need.

When you start with a small classification (K1), you just need SKT. Experts are sufficient with SMU or STM enrollment.

If you choose SIUJK Classification M1 for example, you need SKA. You must have at least a bachelor’s expert. How many scholars do you need – this depends on how many fields you will be working on. If your company is a beginner, only 4 classifications (fields) and only 4 sub-classifications (sub-fields) you can work on.

a) Classification

Existing classifications (in accordance with the new establishment of Construction Services Development Institution) are Building, Civil Building, Mechanical and Electrical Installation, Other Implementation Services, Specialist Implementation Services, Skill Implementation Services. Each of these classifications still has a sub classification. So you have to choose which classification and sub-classification you will be working on.

The Construction Services Development Agency has issued a classification and sub classification complete with its codes for construction services business permit.

b) How Much SKA You Need?

The amount of SKA you need depends on how many fields you will be working on. If you select 4 fields, at least you need 5 SKAs. If your company chooses an M1 qualification for example, then you must have one technical engineering resume and 4 classification (field) handlers.

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If your company only works on 3 classifications, then you need 4 SKA: 1 technical responsible, 3 in charge of classification.

All SKAs must follow the training that has been determined by related professional associations and follow the interview or make a scientific work in accordance with the field they choose before getting the expert certification (SKA).

c) Terms for SKA

  • S1 Engineering and Agriculture
  • Fill in the Membership Form
  • Photocopy of S1 diploma
  • Photocopy of ID card
  • 3×4 4 Sheet Portrait
  • NPWP

d) How Much Length of SKA?

This can take up to a month. First, the experts will follow the training and interview in accordance with the schedule that has been determined by the association of the profession. After graduation, the association will register the experts to the Construction Services Development Agency (LPJK). LPJK will then issue a Certification of Experts in accordance with the field of his choice.

STAGE 2: Certification of the Business Agency

If your company already has certification of experts (SKA), then you can take care of the certification of business entity (SBU). Without a SKA, you may not get a SBU.

To obtain SBU, other than SKA, you must be a member of one of the associations, which is accredited in LPJK. Then, you pay a fee to take care of the SBU according to the field you are working on. There are many documents you need to prepare if you want to get a SBU.

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The management of SBU is related to how fast to set up construction company in Indonesia can take more or less 1 month even more, depending on the number of SBU processed in LPJK.

Terms for SBU

  • Business Entity Certificate (PT or CV)
  • Decree of the Minister of Justice and Human Rights (Legalization)
  • Domicile of business
  • Company Registration Number (NPWP)
  • Trading Business License (SIUP)
  • Company Registration Certificate (TDP)
  • Taxable Enterpreneur (PKP)
  • Corporate Balance Sheet & Financial Statement
  • Certificate of Skills (SKT) / Certificate of Expertise (SKA)
  • Association Member Card (KTA)
  • Corporate Identity Card
  • Responsible Corporate Family Card
  • 4×6 Photo Fit 4 sheets
  • Organizational structure

STAGE 3: SIUJK

If you already have SKA and SBU, then you can take care of Construction Service Business License (IUJK) to local government concerned.

Requirements for SIUJK

Here are the required document requirements:

  • Business Entity Certificate (PT or CV)
  • Decree of the Minister of Justice and Human Rights (Legalization)
  • Domicile of business
  • Company Registration Number (NPWP)
  • Trading Business License (SIUP)
  • Company Registration Certificate (TDP)
  • Taxable Enterpreneur (PKP)
  • Certificate of Skills (SKT) / Certificate of Expertise (SKA)
  • Business Bada Certification (SBU)
  • Corporate Identity Card
  • 4×6 Photo Fit 2 sheets

Hopefully with this article, you have got a little picture of how fast to set up construction company in Indonesia. There is much to be prepared and taken care of. If you feel you are not capable enough or do not have much time to take care of everything, leave it to the legal agent who usually takes care of this.

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