Start Now – It is important for construction companies to have construction permits. This license guarantees legal protection for companies to run and even develop their business activities. 

Therefore, you must pay close attention to the changes concerning the need to have this construction permit.

What is Construction Permit? 

Construction permit is a license that must be owned by every business entity that carries out construction work. 

Often referred to as IUJK, this construction license corresponds to a business classification based on SBU (Sertifikasi Badan Usaha). 

This SBU or Business Entity Certification is a commitment requirement for business owners to obtain IUJK.

The existence of SIUJK also indicates that your company is suitable and able to work on projects according to qualifications. 

Created to avoid errors in the Company’s Articles of Association, the qualifications divided into: 

• K1, K2 and K3
• Intermediate 1 (M1) and Intermediate 2 (M2)
• Large 1 (B1) and Large 2 (B2)

Types of Construction Permits

There are 3 types of Construction Services Business License (IUJK), namely:

Foreign Investment IUJK 

According to its name, this IUJK is intended for contractor and consultant companies established with large qualifications of foreign investment. 

For this foreign investment PPI construction license is issued by a joint venture business entity.  

National IUJK 

The National IUJK applies to business entities engaged in national construction services. It can be a Limited Liability Companies, Limited Liability Partnerships, Firms and cooperatives. 

In addition, the government-owned enterprises (BUMN, BUMD and PMDN) also need this kind of IUJK. 

BUJKA License

This license applies to foreign construction service business entities that carry out business activities (opens a representative office) in Indonesia.

Each of these license has a validity period of 3 years. It can also follow the validity period of the Business Entity Certificate. 

However, this license can be renewed or upgraded for qualification. This includes any changes to the classification and sub-classification of your business.

Construction Business License Requirements and Process

To obtain an IUJK, there are some requirements and process that you need to fulfill. 

IUJK Requirements

To obtain a construction building permit, first you must fill out an application form and include a Rp6,000 stamps.

In addition, you also need to include these following documents:

• A copy of identity card.
• A description of the place of business.
• A copy for NPWP
• A photocopy of the Taxable Entrepreneur.
• A letter of recommendation from the local village head in accordance with the business location.
• Site plan.
• A copy of Building Permit.
• Two photographs in size 3 X 4 
• Proof of payment of Land and Building Tax.
• A copy of land certificate
• Data on equipment facilities owned.
• A copy of the Land Use Designation Permit.
• Business Entity Certification (SBU).
• Application for Engineering Personel Number.
• A photocopy of the previous SIUJK license (if you applying for an extension).

Stages of Construction Permit Processing

There are 4 stages that you must go through to obtain a foreign construction business license and IUJK, including:

Labor Certificate

There are two types of Labor Certificate, namely SKA and SKTK. You will need these two certificates when applying for SBU.

Labor Certificate is a proof of recognition for the competence of a worker who carries out work in construction services. 

The implementation of obtaining it is through the certification and registration process of skilled workers.

Register as an Associate Member

The next requirement you should fulfill for obtaining a construction permit is joining a construction services company association. 

This associations must also be registered with the Construction Services Development Institute or Lembaga Pengembangan Jasa Konstruksi (LPJK). 

Business Entity Certificate

The next a mandatory requirement for obtaining a 2021 construction services business license is having an SBU. 

SBU comes from the certification and registration process of businesses in construction services. Both local and foreign companies must apply for SBU at LPJK. 

The certificate will be given in accordance with the classification and qualifications of the construction service business.

Construction Services Business License

After completing the previous stages, you can then apply for a construction permit. You have to wait 4 to 6 weeks to get the SIUJK.

Changes to the Applicability of OSS Construction Business License

This construction services business license has not been effective, so the government decided to replace licensing in the construction sector. 

Legal Basis of IUJK Change

Recently, the government has enacted law number 11 of 2020, known as the Job Creation Law. This law has made business licensing easier.

The use of OSS one-door system listed in this law is a concrete solution to speed up the licensing process.

In addition, the Job Creation Law also simplifies the types of licenses needed by companies. Indirectly, it also change the implementation of construction permits.

This is also reinforced by implementing regulation number 14 of 2021. It regulates the implementation of the Law on construction services. 

IUJK Substitute Licensing

The construction services business license was abolished, so there must be some licenses that accommodate it. Now, the construction companies must have these license:

Business Identification Number and Standard Certificate

Similar to other business actors, to run a business in the construction sector must have a medium-high risk-based NIB. 

This is because construction service business activities are included in the public works sector. This is in accordance with PP number 5 of 2021.

The article also requires business owners to have a business standard certificate.

SBU Construction

For the second permit, you must apply for an SBU. It is a proof that a construction services company can participate in the procurement process.

You should also know how to make a business license online that can help you to get this license quickly.  

Apply for SBU through the Business Entity Certification Agency through the OSS system.The process for obtaining an SBU, among others:

• Apply first.
• After that, you are required to pay the fees.
• You have to wait for the verification and validation process from the authorized agency.
• At the final stage, you will get the results of your application either approved or rejected.

The existence of the Job Creation Law changes the validity of construction permits. Now, you need to complete your company with NIB and SBU construction.