Are you considering establishing an air conditioning and ventilation installation business as a foreign direct investment firm in Bali, Indonesia?
Look no further than KBLI Code 43224. This code encompasses the installation and maintenance of ventilation systems, refrigerators, and air conditioners (AC) for residential and non-residential buildings, including piping, ducting, and sheet metal work.
This introduction will outline the scope of activities, from technical installations to comprehensive maintenance solutions, providing a roadmap for entrepreneurs looking to venture into Bali’s dynamic market.
In this blog post, we’ll guide you through the process of setting up your AC installation business in Bali, ensuring compliance with local regulations and maximizing your success.
Overview
The scope of KBLI Code 43224 covers the installation and maintenance of air conditioning units and ventilation systems.
This includes services for both residential and non-residential buildings, encompassing piping, ducting, and sheet metal work.
This category ensures that businesses involved can cater to a broad range of construction needs regarding indoor climate control.
Legal Basis
The legal framework for establishing an air conditioning installation business under KBLI Code 43224 in Indonesia is governed by the Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Republik Indonesia No. 6 Tahun 2021.
This regulation provides the foundational legal support for operations and compliance in this industry sector.
Type of License
According to Peraturan BKPM Nomor 4 Tahun 2021, Article 12, an exception is made from the minimum investment value requirement for Foreign Direct Investment (PMA), where the total investment must exceed IDR 10 billion, excluding land and building costs per KBLI 5-digit business activity per project location.
This is applicable to construction service businesses, among others.
Coverage of Service
The services under KBLI Code 43224 include the installation and maintenance of ventilation systems and air conditioning units for building structures.
The scope is detailed to include all necessary work with pipes, ducting, and sheet metals, essential for proper installation and operation of these systems.
Business Scale, Land Area, and Risk Level
The business scale under this KBLI code is categorized as a large enterprise.
The specific land area requirements are not regulated, but the risk level associated with this business is considered medium-high.
This designation influences both regulatory requirements and safety standards that must be adhered to.
Authorities Granting Licenses
Licensing authority for businesses operating under KBLI Code 43224 is vested in the Ministry or the Head of Agency, with overarching regulations provided by the Government Regulation No. 5 of 2021 concerning Risk-Based Business Licensing in the construction sector.
Requirements and Obligations for Business Licensing
The business licensing requirements include obtaining a Standard Certificate and demonstrating a Construction Service Business Entity’s Capability Rating.
Obligations for licensed businesses entail annual reporting of business activities and adherence to standards concerning quality of materials and equipment, workplace safety and health, construction service procedures, quality of construction results, operations and maintenance standards, social protection guidelines for workers, and environmental management standards as per the legal regulations.
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Frequently Asked Questions
- What types of buildings can an air conditioning installation business under KBLI Code 43224 cater to in Bali, Indonesia?
An air conditioning installation business under KBLI Code 43224 can cater to both residential and non-residential buildings in Bali, Indonesia, providing installation and maintenance services for ventilation systems, refrigerators, and air conditioning units.
- How long does it take to obtain a business license for an air conditioning installation business in Bali, Indonesia?
The duration for obtaining a business license, which is a Standard Certificate, is 15 days, provided that all requirements are met, including demonstrating the Construction Service Business Entity's Capability Rating.
- What are the potential challenges that a foreign investor might face when establishing an air conditioning installation business in Bali, Indonesia?
Potential challenges include navigating the local business culture, understanding and complying with various regulations, finding skilled labor, and adapting to the local market's unique demands and preferences.
- How can an air conditioning installation business differentiate itself from competitors in the Balinese market?
An air conditioning installation business can differentiate itself by offering high-quality services, using advanced technology and equipment, providing exceptional customer support, and demonstrating a strong commitment to sustainability and environmental responsibility.
- What are the most common types of air conditioning systems installed in residential and commercial properties in Bali, Indonesia?
The most common types of air conditioning systems installed in Bali include split systems, ducted systems, and VRV (Variable Refrigerant Volume) systems, which cater to the diverse needs of residential and commercial properties in the region.
Please contact us for air conditioning services for foreign direct clients.
