Establishing a construction business in Indonesia is an excellent choice because infrastructure development in Indonesia becomes one of the leading priority of the government until 2020. Regulated by the recent negative investment list, a construction company can be owned by foreign companies in certain conditions. Knowing how fast to set up a construction company in Indonesia will help on your planning on setting up your construction business.
Foreign companies can own only about 67 to 70 percent of the construction company considering whether you are from ASEAN countries or not. How fast to set up a construction company in Indonesia is based on how you plan and estimate your time plan. How fast to set up a construction company in Indonesia also depends on the administration process that you have to get it done for your business to be established legally. Here is some information for helping you to figure how fast to set up a construction company in Indonesia.
How fast to set up a construction company in Indonesia
- Planning
As mentioned, the first factor which affects on how fast to set up a construction company in Indonesia is about your plan. You should decide the type of construction business you want to build, whether it is construction works or construction consultation. You can establish your company in the form of PMA company or representative office. If you are a contractor, your business classification can be a civil construction, electrical installation, building construction, or other specialty construction.
- Finding a local partner
Finding a local partner is necessary that it is also will affect how fast to set up a construction company in Indonesia. Foreign individuals or businesses have some restriction in establishing a company in Indonesia, so it is essential to seek for the local partner to develop the company together. How fast to set up a construction company in Indonesia will also depend on your local partner, because if the local partner is working and living in Indonesia, the local partner needs a work permit (KITAS) and tax ID (NPWP).
- Obtaining Construction Association Membership (KTA)
This step will also give some influence to how fast to set up a construction company in Indonesia because it is obligatory for you to obtain construction association membership from various construction association based on your construction business category. Obtaining KTA will impact on how fast to set up a construction company in Indonesia. Here are some membership requirements :
- If the construction service category is a contractor, the association is Gabungan Perusahaan Kontruksi Indonesia (GAPEKSI).
- If the construction business category is integrated service (EPC), the association is Gabungan Perusahaan Nasional Rancang Bangun Indonesia (GAPENRI).
- If the construction service category is construction consultation, the association is Ikatan National Konsultan Indonesia (INKINDO).
- Obtaining Necessary Certificates
How fast to set up a construction company in Indonesia is also based on how long you obtain the necessary certificates about your business. As a construction company, it is mandatory to acquire a business entity certificate (SBU). This document can be obtained from Construction Services Development Institute (LPJKN). If you are an architect or engineer or any other professionals, applying for an expertise certificate of SKA will also affect how fast to set up a construction company in Indonesia. Here are the summaries of the complete steps to acquire documents for helping you on how fast to set up a construction company in Indonesia :
- SKA or Expertise Certificate
- KTA or Construction Association Membership
- SBU or Legal Entity Certificate
- Applying for business license
If you already receive your SBU and other certificates, you can then obtain your business license which is called IUJK or Izin Usaha Jasa Konstruksi.
How fast to set up a construction company in Indonesia can be about four months based on the step you have to do. It will be more efficient if you have some help from an Indonesian business consultant service. Hopefully, this article can provide you enough information.