Registration Series – Foreign Construction Company

As a growing country infrastructure and building construction become a major part in Indonesia development. The said activities in Indonesia is regulated under Construction Service Law (Undang Undang Jasa Konstruksi/ “Law 2 of 2017”). The law regulate that the activities could only be done by an individual or company that have a construction business license.

In this article we will share brief information in relation with the registration of company and business license procedure for a construction company (for Local and Foreign Direct Investment/ “FDI”)

Company Registration

Requirements

  • Authorized Capital:
    • Local: Minimum IDR 50 Million (subject to level qualifications applied);
    • FDI: Minimum IDR 10 Billion (subject to level qualifications applied).
  • Shareholders:
    • Local: Minimum two person (individual and/or legal entity);
    • FDI : Minimum two person (maximum foreign Investment is 67% and must be join venture with Local Construction Company with Large Qualification).
  • Management:
    • Local: Minimum Director and one Commissioner;
    • FDI: Same with local requirement.

Procedure

  1. Principal License registration to Indonesia Coordinating Board (Badan Koordinasi Penanaman Modal), mandatory for FDI Company;
  2. Article of Association (“AoA”) registration to Notary Public;
  3. Approval for the AoA registration to Ministry of Law and Human Rights;
  4. Certificate of Domicile registration to Local Government (District Level);
  5. Tax ID registration to Tax Office; and
  6. Company Registration Certificate registration to Local Government (City Level).

Business License Registration

Types of License

  1. Planning and Supervisor Service;
  2. Construction Service; and
  3. Integrated Construction Service.

Types of Qualification 

  1. Private Individual Qualification (P);
  2. Small Company Qualification (K1, K2 and K3)
  3. Medium Company Qualification (M1 and M2)
  4. Big Company Qualification (B1 and B2)

Requirement

  • Manpower: subject to level qualifications applied;
  • Portfolio: subject to level qualifications applied.

Procedure

  1. Association Registration to related association with the type of license applied;
  2. Certificate of Business Entity Registration to Institute of Construction Services Development (Lembaga Pengembang Jasa Konstruksi/ “LPJK”);
  3. Construction Business License Registration to Local Government or BKPM (for FDI).

Reference (downloadable via Google Drive)