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”)
- Authorized Capital:
- Local: Minimum IDR 50 Million (subject to level qualifications applied);
- FDI: Minimum IDR 10 Billion (subject to level qualifications applied).
- 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).
- Local: Minimum Director and one Commissioner;
- FDI: Same with local requirement.
- Principal License registration to Indonesia Coordinating Board (Badan Koordinasi Penanaman Modal), mandatory for FDI Company;
- Article of Association (“AoA”) registration to Notary Public;
- Approval for the AoA registration to Ministry of Law and Human Rights;
- Certificate of Domicile registration to Local Government (District Level);
- Tax ID registration to Tax Office; and
- Company Registration Certificate registration to Local Government (City Level).
Business License Registration
Types of License
- Planning and Supervisor Service;
- Construction Service; and
- Integrated Construction Service.
Types of Qualification
- Private Individual Qualification (P);
- Small Company Qualification (K1, K2 and K3)
- Medium Company Qualification (M1 and M2)
- Big Company Qualification (B1 and B2)
- Manpower: subject to level qualifications applied;
- Portfolio: subject to level qualifications applied.
- Association Registration to related association with the type of license applied;
- Certificate of Business Entity Registration to Institute of Construction Services Development (Lembaga Pengembang Jasa Konstruksi/ “LPJK”);
- Construction Business License Registration to Local Government or BKPM (for FDI).
Reference (downloadable via Google Drive)
- Law 25 of 2007 (Undang Undang Penanaman Modal/ Indonesian Direct Investment Law)
- Law 40 of 2007 (Undang Undang Perseroan Terbatas/ Indonesian Company Law)
- Law 2 of 2017 (Undang Undang Jasa Konstruksi/ Indonesian Construction Service Law)