START NOW – What is SBU? This may be a question for those of you who are hearing the term for the first time.

Knowing the answer to the question of what is SBU is very important if you want to start a business.

What is SBU

SBU stands for Sertifikat Badan Usaha (Business Entity Certificate). It is an official document that proves that a company has been registered by the government. 

The institution authorized to issue it is LPJK or Lembaga Pengembangan Jasa Konstruksi (the Construction Services Development Institute).

SBU is very important because it shows that the company is legal and has a license to conduct business activities.

The process of obtaining an SBU usually involves collecting important documents, such as: 

• The company’s deed of establishment
• Business license, and 
• The identity of the company’s owners or management.

The Advantage of Having an SBU

In addition to the question “what is SBU”, you may also be wondering what are the benefits of having it? 

Well, there are several things that are beneficial by making an SBU for your company, including: 

Gain Trust from Clients and Collegues

By having an SBU, it means the company has passed the verification process and met the government’ standards. 

So it’s like a quality assurance for related parties related parties who want to transact or cooperate with the company. 

Can Participate on Giant Projects

Yes, who doesn’t want to be appointed as a vendor for mega projects that can bring many benefits for company?

However, the large projects (especially that are held by the government) usually cannot be taken by just any vendor. 

The company that will take the project must have a certificate in a particular field that corresponds to the project.

Having an SBU will allow you to participate in this project. Furthermore, you can also cooperate with other parties and apply for bank loans easily. 

Types of SBU

To know a more detailed answer to the question of “what is SBU”, you also need to know the types. 

There are four common types of SBUs, each with a different focus and requirements, namely: 

SBU Consultant

A consultant SBU is required for business entities that want to provide consulting services in various fields. 

It is include the consultant service in the field of management, finance, law, information technology, and others. 

To obtain a consultant SBU, you must meet certain requirements that prove the experience and expertise in the relevant field. 

With this SBU, company can offer consulting services to their clients with the confidence that they have the necessary competencies.

Construction Services SBU

A construction services SBU is granted to business entities that wish to engage in the construction field. 

The requirements to obtain this SBU usually include: 

• Having experience in previous construction projectss
• Having a skilled and trained workforce
• Complying with set safety and quality standards

Non-Construction Consultant SBU

A non-construction consultant SBU is a license granted to company that provide consulting services in areas other than construction.  

The requirements to obtain this SBU depend on the type of consultancy offered. However, it’s generally involve having relevant experience and expertise in that field. 

With this SBU, company can offer consulting services to various industries and organizations without being associated with a construction project.

Specialist SBU

Specialist SBUs are awarded to companies that have specialized expertise in a particular field. For example: high technology, renewable energy, or cyber security. 

The requirements to obtain this SBU are very specific and require strong evidence of expertise and experience in the field. 

With a specialist SBU, enterprises can highlight their strengths in a specific market. They can also attract the attention of clients who require specialized expertise.

What Happens If You Don’t Take Care of LPJK’s SBU

After knowing what is SBU and what are the benefits, you certainly shouldn’t ignore its ownership matter.

There are several disadvantages that you may experience if you do not have this SBU, including: 

Can’t Participate in Tenders

Having a SBU is the main prerequisite to participate in construction tenders organized by the government or private sector. 

So, without having a valid SBU, you will be left out of the market competition.

Loss of Reputation

As mentioned earlier, SBU is proof that your company has met the standards set by the relevant authorities. 

Without having or renewing it, your business reputation could be tainted in the eyes of clients, partners and the public. 

When people are unsure of your company’s quality and legality, they may avoid working with you. Even worse, they can spread bad news about you.

Potential Legal Issues

In some countries, obtaining an SBU also means complying with regulations and laws related to the construction sector. 

In case of violation or negligence, you could be exposed to severe legal sanctions, including fines and operational restrictions. 

Avoiding these legal proceedings is important to maintain your business continuity.

Limited Project Access

Many large and exciting construction projects are only open to companies that have a valid SBU from LPJK. 

By not having it, you will limiting your access to lucrative business opportunities. This means, your company will miss the opportunity to grow. 

Loss of Competitiveness

Having a valid SBU as credibility assurance can be a significant tools for you sto compete in the competitive markets. 

It can be the differentiator that determine between you and your competitors when clients are selecting contractors for their projects. 

Potential Financial Loss

Administering and maintaining an SBU LPJK does require an investment of time and money, but it is worth it. 

These costs will spare you from potential financial losses due to lost projects, legal sanctions, or a decline in reputation. 

By ignoring the SBU LPJK, you may face much greater costs in the future.

How to Obtain An SBU?

The last discussion to complete your curiosity about what is SBU is about how it is made.

Processing SBU may require some times. There are several tests that will be conducted to see your company’s ability to hold the certificate.

However, you can pass it easily, especially if you are sure that your company already has extensive and reliable experience.

If necessary, you can also ask for help from a service bureau to take care of the registration.

Now, you’re no longer wondering what is SBU, right? Start Now is ready to help if you need more info or assistance related to it.