Construction Services Permit (Surat Ijin Usaha Jasa Konstruksi/SIUJK)

Every business entity that does construction work in Indonesia either as an executor, planner or supervisor of construction is required to have a Construction Services Permit (IUJK) in accordance with applicable laws and regulations.

Construction Services Permit (SIUJK/Surat Ijin Usaha Jasa Konstruksi)

Every business entity that does construction work in Indonesia (either as an executor, planner or supervisor of construction business) is required to have a Construction Services Business License (SIUJK / IUJK) in accordance with applicable laws and regulations.

SIUJK is issued according to business classification and qualifications based on the Business Entity Certificate (SBU) which becomes a requirement to obtain an effective construction service business license through the registration in OSS (Online Single Submission).

SIUJK

IUJK PMA

This Construction Services Business License is issued specifically for Joint Ventures established in the framework of foreign investment (PT PMA) with Large qualifications for both Contractors and Consultants.

SIUJK

IUJK National

The IUJK National is issued to local-owned construction service business entities in the form of PT or CV including BUMN, BUMD or business entities established in the framework of Domestic Investment (PMDN).

SIUJK

BUJKA Permit

The BUJKA Permit is only given to foreign construction service business entities that carry out business activities in Indonesia by opening a representative office of construction services in Indonesia.

The validity period of a Construction Services Permit

A Construction Services Permit is valid for three years. A PMA permit will be
valid as long as the holder continues to operate (note that an SBU typically
must be renewed every three years).

Licenses Issuance System and Sequence for Foreign Construction Company (BUJKA and BUJK PMA)

A new Minister of Public Works and Housing (“MOPWH”) regulation, Regulation No. 9 of 2019 on Guidelines for Foreign Construction Services Business Entities (“Regulation 9”), came into force on 13 June 2019. Since the introduction of the Online Single Submission (“OSS”) system regulatory framework in 2018, the main construction permits for BUJKA and BUJK PMA are issued through the OSS instead of by the Investment Coordinating Board (“BKPM”), and are subject to subsequent compliance audits. Accordingly, Regulation 9 also revoked the delegation of construction permits issuance from MOPWH to BKPM, which was set out in MOPWH Regulation No. 22/PRT/M/2014. However, the OSS system is currently maintained by BKPM.

Similar to other licenses issued through OSS, construction permits for BUJKA and BUJK PMA can be issued immediately, but they will only be effective once
certain commitments are fulfilled. See our previous client alert on the OSS system.

In the past, BUJKAs and BUJK PMAs first had to secure membership in a construction association and secure a Business Entity Certificate (“SBU”) from
the National Construction Development Institution (“LPJK”) before they could apply for construction permits. This process could take more than a month.

Under Regulation 9, BUJKA and BUJK PMA now first obtain a Business Identity Number (“NIB”) from the OSS system followed by a “temporary”
BUJKA or BUJK PMA construction permit. They must then fulfill certain commitments within 30 days after the issuance of the “temporary” permit
before they can obtain the effective BUJKA or PMA construction permits. The main commitment to be fulfilled is obtaining the SBU from LPJK. If the BUJKA or BUJK PMA fails to fulfill those commitments before the deadline, the “temporary” permit will be cancelled. Presumably the company can re-apply for
the license by going through the same process. However, given the relatively short timeframe for obtaining the SBU, BUJKA and BUJK PMA may need to
prepare to register with an association and to apply for the SBU application before processing the “temporary” permit in order to meet the 30-day deadline.

Licensing Procedures for Foreign Construction Permit

SIUJK

BUJK PMA

The Old MOPWH Regulations set out the timeline (for nonintegrated construction services BUJK PMA) under which it takes around 30 business days (BD) from the submission of SBU application to LPJK until the issuance of the SBU. However, in practice, it would take around 3-6 months for the issuance of SBU from the submission to the association.

SIUJK

BUJKA

Subject to any future development, during the 30-BD period of fulfilment of commitments, BUJKA and BUJK PMA must obtain an SBU. Under the previous regime, it would take around 3-6 months for the issuance of SBU from the submission of the application to the association.

List of Commitments to Obtain Effective Foreign Construction Permit

Applicable to BUJK PMA:

  1. Application letter to MOPWH c.q. General Director of Construction
  2. NIB and “temporary” BUJK PMA construction permit issued by OSS
  3. Valid SBU issued by LPJK
  4. Deed of establishment of BUJK PMA and its amendments along with the approval from the Minister of
    Law and Human Rights
  5. Articles of association of BUJKA and any amendments thereto along with the approval or receipt of notification from the Minister of Law and Human Rights
  6. Statement letter stating that director, commissioner, PJBU and PJTBU do not hold dual positions as directors, commissioners, PJBU and PJTBU in BUJKAs, other BUJK PMAs and BUJKNs at the same
    time
  7. Proof of identity of foreign contractor:
    (a) latest annual report of the foreign contractor
    (b) company profile of the foreign contractor
    (c) certificate/business license demonstrating the grade of company in construction field
  8. Proof of identity of BUJKN:
    (a) SBU with ‘large qualification’
    (b) BUJKN construction permit

Applicable for BUJKA:

  1. Application letter to MOPWH c.q. General Director of Construction
  2. NIB and “temporary” BUJKA construction permit issued by OSS
  3. Valid SBU issued by LPJK
  4. Statement letter stating that PJBU and PJTBU will not hold dual positions as directors, commissioners, PJBU and PJTBU in BUJK PMAs, BUJKNs and other BUJKAs at the same time
  5. For PJBU and PTJBU:
    (a) limited/permanent stay permit, passport or Indonesian ID card
    (b) letter of appointment from the parent company of BUJKA
 
 
 
 
 
 
 
 
 
 
 

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