Are you an investor seeking to start a prefabricated construction and civil engineering services company in Bali?
This comprehensive guide will unveil the opportunities and processes involved in starting a foreign direct investment firm under KBLI Code 42930.
As per the description, this group includes the installation of factory-produced materials such as precast concrete, steel, plastics, rubber, and other prefabricated components using fabrication, erection, and assembly methods for civil construction projects.
The scope further clarifies that this subclassification code KP002 encompasses activities related to the installation of factory-made materials for civil buildings.
Whether you’re looking to start your business journey in Bali or expand your investment portfolio, this blog will provide essential insights into building a successful foreign direct investment firm in the unique and promising Indonesian market.
Overview
This section covers activities related to the installation of factory-produced materials such as precast concrete, steel, plastic, rubber, and other materials through fabrication, erection, and assembly methods for civil structures under KBLI Code 42930.
Legal Basis
The legal framework for the prefabricated construction services is established under the “Peraturan Menteri Pekerjaan Umum Dan Perumahan Rakyat Republik Indonesia Nomor 6 Tahun 2021”, which sets the standards and regulations for the industry.
Type of License
The legal framework for the prefabricated construction services is established under the “Peraturan Menteri Pekerjaan Umum Dan Perumahan Rakyat Republik Indonesia Nomor 6 Tahun 2021”, which sets the standards and regulations for the industry.
Coverage of Service
The scope of services under this KBLI code includes installation tasks using prefabricated materials specified in sub-classification code KP002, applicable to various construction activities.
Business Scale, Land Area, and Risk Level
The operations are categorized under a large business scale with no specific regulation on land area.
The risk level is considered medium to high, requiring thorough compliance with safety and operational standards.
Authorities Granting Licenses
Licensing authority rests with national-level officials, specifically the Minister or Head of Agency, ensuring centralized control and standardization across the sector.
Requirements and Obligations for Business Licensing
Licensing Requirements:
- Standard Establishment of Service Construction Business Entity Capability
Business Obligations:
- Report annual business activities
- Implement safety, health, sustainability standards including:
- Material quality standards
- Equipment quality standards
- Occupational health and safety standards
- Construction service implementation procedure standards
- Construction service output quality standards
- Operation and maintenance standards
- Social protection guidelines for workers
- Environmental management standards
The licensing process takes 15 days, and a Standard Certificate is issued.
Frequently Asked Questions
- Are there any restrictions on the types of civil structures that can be built using these prefabricated methods?
No, the code does not specify any restrictions on the types of civil structures that can be constructed using prefabricated materials and methods, as long as they fall under civil engineering projects.
- Can foreign investors form joint ventures with local companies for these prefabricated construction services?
Yes, foreign investors can form joint ventures with local companies, with ownership limits based on their country of origin (67% for non-ASEAN and 70% for ASEAN investors).
- Are there any tax incentives or benefits available for foreign investors in this sector?
The code and regulations do not explicitly mention any tax incentives or benefits specifically for foreign investors in the prefabricated civil engineering construction services sector.
- Are there any specific insurance requirements for businesses operating under this KBLI code?
The code does not mention any specific insurance requirements, but businesses may need to comply with general insurance regulations for construction activities in Indonesia.
- Can businesses under this code also provide design or consulting services for prefabricated civil engineering projects?
This code specifically covers the installation and assembly services for prefabricated materials. Design and consulting services may fall under a different KBLI code.
