Are you a foreign investor dreaming of opening a shopping centre in the island paradise of Bali, Indonesia?
As Bali emerges as a prime destination for retail investment, the opportunities are ripe for foreign-owned companies looking to construct and operate a shopping centre.
This venture falls under KBLI Code 41014, which involves developing, maintaining, or redeveloping buildings designed for retail, such as trade buildings, markets, malls, department stores, shops, and stalls.
It also includes constructing shop houses with the intent to sell and extensively modifying or renovating existing retail buildings.
To navigate the intricacies of establishing a thriving retail hub in this tourist hotspot, it’s crucial to understand the scope of work, from architectural design to constructing various commercial buildings.
Overview
The KBLI Code 41014 covers businesses involved in constructing, maintaining, or rebuilding buildings used for retail purposes such as commercial buildings, markets, malls, department stores, shops, and stalls.
This category includes construction projects undertaken by real estate companies aimed at selling these properties and activities involving changes and renovations of shopping buildings.
Legal Basis
The construction of shopping centers under KBLI Code 41014 is governed by the Regulation of the Minister of Public Works and People’s Housing of the Republic of Indonesia Number 6 of 2021.
Additional guidelines for foreign-owned companies (PMA) are outlined in BKPM Regulation Number 4 of 2021, Article 12, which details exceptions from the minimum investment requirements.
Type of License
For construction businesses under KBLI 41014, the type of business license required is a Standard Business License.
This license facilitates the undertaking of construction projects, including the design and execution of shopping facilities.
Coverage of Service
The service coverage under this KBLI code includes the design, construction, maintenance, demolition, and rebuilding of buildings for retail use.
This encompasses a wide range of retail structures from shopping malls to individual shops and kiosks.
Business Scale, Land Area, and Risk Level
Businesses operating under KBLI Code 41014 are classified as large enterprises.
The regulations do not specify a required land area for these projects, but they are considered to be of medium-high risk level due to the scale and impact of construction activities.
Authorities Granting Licenses
The authority to grant licenses for businesses under this KBLI code rests with the Minister or Head of the Agency.
This ensures a centralized and standardized approval process for large-scale construction projects.
Requirements and Obligations for Business Licensing
Licensing requires compliance with the Standard Determination of Construction Service Business Capability.
Obligations include recording company experience, adhering to safety, health, sustainability, environmental, and labor protection standards according to existing laws.
Frequently Asked Questions
- Can foreign-owned companies undertake shopping center construction projects in Indonesia?
Yes, foreign-owned companies can engage in shopping center construction projects under KBLI Code 41014, but they must comply with investment regulations and may have ownership restrictions based on ASEAN and non-ASEAN investor criteria.
- What type of license is required for foreign investors to start a shopping center construction business in Indonesia?
Foreign investors need to obtain a Standard Business License and comply with specific foreign investment rules, including capital investment minimums and business scale requirements.
- How long does the licensing process typically take for a shopping center construction under KBLI Code: 41014?
The licensing process can take approximately 15 days to complete, provided all the required documents and prerequisites are met accurately.
- What are the typical financing options available for foreign investors in shopping center construction projects in Bali?
Financing options may include bank loans, joint ventures with local partners, private equity funding, or exploring government incentives or subsidies for foreign direct investment in specific sectors.
Contact us for information about opening a shopping center in Bali.
