Providing adequate shelter is fundamental to human well-being, alongside clothing and food. However, many in urban areas struggle to secure suitable housing, emphasizing the vital role of construction services. Establishing a construction company in Indonesia can contribute significantly to improving living standards.

Understanding the Regulatory Landscape

Navigating Indonesia's regulatory framework is crucial for foreign investors. The Negative Investment List (DNI) stipulates ownership conditions for construction companies, with foreign entities permitted to own up to 67-70% of shares. Project values must meet certain thresholds, with a minimum of IDR 50 billion for general construction and IDR 10 billion for consulting services.

Steps to Establish Your Construction Business

1. Business Type Selection:

Decide on the type of construction services to offer, such as consulting, contracting, or integrated services, and determine the business entity structure.

2. Construction Classification:

Define the scope of construction activities, including civil, building, electrical, or specialized construction, and specify sub-classifications.

3. Local Partnership:

Compliance with ownership regulations necessitates partnering with local residents to form a joint venture company. Essential documentation includes permits, deeds of establishment, and tax identification.

4. Membership and Certification:

Membership in construction associations like Gapeksi, Gapenri, or Inkindo is mandatory, depending on the service category. Additionally, obtain business entity certificates (SBU) and professional certifications (SKA) for key personnel.

5. Licensing Requirements:

Secure a Construction Services Business Permit (IUJK) by fulfilling criteria such as application forms, company details, financial reports, and proof of professional qualifications.

Key Documents and Compliance

To streamline the licensing process, prepare essential documents, including:

- Business permits and deeds of establishment

- Tax identification numbers (NPWP)

- Membership identification cards (KTA)

- Engineering diplomas and professional certifications

- Office space ownership certificates

- Work experience records and recommendations

Conclusion

Establishing a construction services company in Indonesia demands adherence to regulatory requirements and thorough documentation. By following the outlined steps and meeting compliance standards, entrepreneurs can embark on a successful venture to address the growing demand for quality construction services in the region.