Bali, Indonesia, is a popular destination for tourists and businesses alike.
With its growing economy and increasing demand for recreational facilities, multinational companies have a unique opportunity to invest in the island’s sports infrastructure.
If you’re considering opening a sports facilities construction business in Bali, understanding the requirements and process is crucial.
This guide will walk you through the essentials of opening a multinational company under the Indonesian Standard Industrial Classification (KBLI) code 42918, which covers the construction and maintenance of stadiums, athletic fields, tennis courts, golf courses, swimming pools, and other sports facilities.
By following these steps, you can successfully launch your business and contribute to Bali’s thriving sports industry.
Overview
This section covers the activities involved in the construction, maintenance, and reconstruction of sports facility buildings under KBLI Code 42918.
These include stadiums, sports fields (like soccer, baseball, rugby, racing tracks), basketball courts, hockey rinks, tennis courts, golf courses, Olympic-standard swimming pools, athletic tracks, archery ranges, and other sports-related facilities.
Legal Basis
The construction and operation of sports facilities under KBLI Code 42918 are governed by the Regulation of the Minister of Public Works and People’s Housing of the Republic of Indonesia Number 6 of 2021.
Type of License
According to BKPM Regulation No. 4 of 2021, Article 12, an exemption from the minimum investment requirement applies to the construction services sector, where the total investment exceeds IDR 10 billion, excluding land and buildings per five-digit KBLI business field per project location.
Coverage of Service
The services under KBLI Code 42918 extend to designing, building, maintaining, and demolishing civil constructions of sports facilities, including all the specified types of sports infrastructure.
Business Scale, Land Area, and Risk Level
The business operations under this KBLI are categorized as large scale. The land area for such projects is not specifically regulated, and the risk level is classified as medium-high.
Authorities Granting Licenses
Licenses for the activities specified under KBLI Code 42918 are granted by the Minister or Head of Agency, encompassing both domestic and foreign direct investment companies.
Requirements and Obligations for Business Licensing
Business licensing for constructing sports facilities requires compliance with several standards to ensure safety, quality, and sustainability.
These include standards for materials, equipment, occupational safety and health, construction service execution, quality of construction results, operations, and maintenance.
Businesses must also record their experience, adhere to labor protection guidelines according to legislation, and manage environmental aspects as per legal requirements.
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Frequently Asked Questions
- What types of sports facilities are covered under KBLI Code 42918?
KBLI Code 42918 covers the construction, maintenance, and reconstruction of various sports facilities, including stadiums, sports fields (soccer, baseball, rugby, racing tracks), basketball courts, hockey rinks, tennis courts, golf courses, Olympic-standard swimming pools, athletic tracks, archery ranges, and other sports-related infrastructure.
- Are there any exemptions for the minimum investment requirement in the construction services sector?
Yes, according to BKPM Regulation No. 4 of 2021, Article 12, an exemption from the minimum investment requirement applies to the construction services sector, where the total investment exceeds IDR 10 billion, excluding land and buildings per five-digit KBLI business field per project location.
- What are the requirements for obtaining a business license to construct sports facilities in Bali?
Business licensing for constructing sports facilities requires compliance with several standards to ensure safety, quality, and sustainability. These include standards for materials, equipment, occupational safety and health, construction service execution, quality of construction results, operations, and maintenance.
- Can foreign companies invest in sports facilities construction projects in Bali?
Yes, foreign direct investment companies can obtain licenses for activities specified under KBLI Code 42918, granted by the Minister or Head of Agency.
- What is the potential for growth in the sports facilities construction industry in Bali?
With Bali's growing economy and increasing demand for recreational facilities, there is significant potential for growth in the sports facilities construction industry. Multinational companies have a unique opportunity to invest in the island's sports infrastructure and contribute to Bali's thriving sports industry.
Contact Us for Opening Sports Facilities in Bali, Indonesia.
