Licensing In The Indonesian Construction And Projects Sector

The following licences are required to engage in the construction business in Indonesia:

• If construction business is carried out by individuals, an Individual Business Registration Licence (Tanda Daftar Usaha Perseorangan) (TDUP) is required. The TDUP is issued by the regency/city government.
• If construction business is carried out by an Indonesian business entity (including for a PT PMA), a Business Entity Certificate (Sertifikat Badan Usaha) (SBU) and a Construction Services Business Licence (Izin Usaha Jasa Konstruksi) (IUJK) are required. An SBU is issued by the Construction Services Development Institution (Lembaga Pengembangan Jasa Konstruksi) (LPJK) through a construction association appointed by the LPJK as its representative. For local business entities, an IUJK is issued by the regency/city regional government for local companies. For PT PMAs, these are issued by the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal) (BKPM).