BUJKA

Initially, the basic requirements for a PT PMA in the construction sector align with general foreign investment regulations, necessitating documents such as :

• company naming (minimum 3 words)
• shareholder identities (ID/Passport/Articles of Association)
• office lease agreements.

Furthermore, you must provide specific technical data, including the identities of Directors and Commissioners, building permits (IMB), land tax records (PBB), and legalized diplomas or competency certificates for any employed foreign workers.

Additionally, construction firms must obtain a mandatory Construction Business Entity Certificate (SBU), which serves as official proof of eligibility to participate in procurement and provide construction services in Indonesia.

SBU Regulations and Procedures

Consequently, under Regulation No. 5/2021, firms apply for the SBU through the OSS system and the LSBU. Subsequently, the structured process involves application, payment, verification, and validation before final approval or rejection. Moreover, the SBU remains valid for three years and allows for renewals or modifications to maintain compliance.

Sanctions and Compliance

Notably, operating without a valid SBU carries heavy financial penalties, where PT PMAs can be fined 10% of their total contract value, while representative offices face a 20% fine.

In addition, delays in renewing an SBU trigger daily administrative fines; for large-scale foreign-qualified entities, these penalties can reach IDR 5,000,000 per working day.

Finally, it is important to remember that while the transition to the OSS-RBA system streamlines the process, existing certificates remain valid until their original expiration date as per current transitional circular letters.