Open a Construction Company in Indonesia

Updated on Monday 13th August 2018

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Like any country with a large population, the demand for new residential buildings is very high in Indonesia. This has led to the fast development of the construction sector in the last few years. By 2020, the spending on construction works is expected to grow by 5.2% and most of these works will be completed by foreign investors.

Those who want to open companies in the construction sector in Indonesia must pay attention to the legislation in this field. It is also good to know that foreign investors are subject to specific requirements if they want to open construction businesses in Indonesia. These requirements are explained by our Indonesia company incorporation agents below.

Requirements for foreigners opening construction companies in Indonesia

Foreign investors opening construction businesses in Indonesia must comply with the following requirements:
  •           register their companies as a PT PMA (limited liability company with foreign ownership) or as a construction representative office;
  •           in case of a PT PMA, the foreign entrepreneur must have a local partner in Indonesia;
  •           apply for the business license in accordance with the classification and sub-classification of the services offered;
  •           apply for a Construction Association Membership (KTA) with one or more organizations in Indonesia.

Our company formation advisors in Indonesia can help with the registration of a construction company in the form of a PT PMA.

Business licenses for construction companies in Indonesia

As mentioned above, construction permits in Indonesia are issued in accordance with the classification of the work to be completed. The following classifications can be obtained by constructors in Indonesia:
  •           contractor;
  •           construction consulting.

For contractors the following sub-classifications are available:
  •           for civil construction works;
  •           for building construction works;
  •           for electrical installation works;
  •           for special construction works.

An Indonesian construction company must also apply for a business entity certificate, known as the SBU.

Considering the special requirements for foreign investors opening construction businesses here, please contact our company registration consultants in Indonesia if you want to set up such a venture.