Aspiring to venture into Bali’s booming construction and installation services industry?
This comprehensive guide will navigate you through the process of establishing a foreign investment company (PT PMA) under KBLI Code 43299.
Covering a wide range of civil engineering, infrastructure, and project development activities, this code includes the installation of building facilities, maintenance and repair of civil construction installations.
It also encompasses the installation and upkeep of mining and manufacturing facilities like loading stations, chemical plants, iron foundries, blast furnaces, coke ovens, and water treatment systems for power plants.
Whether you’re seeking to start a construction business, real estate venture, or building services company in Bali, this blog will provide valuable insights into setting up your PT PMA in this lucrative sector.
Overview
KBLI Code 43299 encompasses a broad range of specialized construction activities.
These include the installation, maintenance, and repair of various building and civil engineering infrastructures not covered under codes 43291 to 43294.
It notably involves setting up and servicing mining and manufacturing facilities such as loading and discharging stations, winding shafts, chemical plants, iron foundries, blast furnaces, and coke ovens, as well as systems for purifying different types of water at power plants.
Legal Basis
The operations under KBLI Code 43299 are regulated by the Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Republik Indonesia No. 6 Tahun 2021, which provides the legal framework necessary for conducting such specialized construction activities.
Type of License
The licensing for activities under this KBLI is governed by the Peraturan BKPM Nomor 4 Tahun 2021, Article 12.
It states that foreign direct investments in this sector must exceed IDR 10 billion, excluding land and building costs.
This applies specifically to construction service businesses, where each activity is categorized distinctly within the first four digits of the KBLI.
Coverage of Service
The services covered under this KBLI code include the installation of systems and equipment for water purification at power plants and infrastructure equipment at mining sites, among other construction-related installations.
Business Scale, Land Area, and Risk Level
Businesses operating under KBLI Code 43299 are considered large-scale enterprises.
The specific requirements for land area are not regulated, but these activities are classified as having a high-medium risk level, necessitating stringent compliance and safety standards.
Authorities Granting Licenses
The authority to grant licenses for these business activities rests with the Ministry or the Head of Agency, as per Indonesian government regulations concerning risk-based business licensing.
Requirements and Obligations for Business Licensing
Businesses must obtain a Standard Certificate and demonstrate their construction service capability as per the standards set.
They are obligated to keep records of business experiences and adhere to various standards, including those for material quality, equipment quality, workplace safety and health, construction procedures, outcomes, operations, maintenance, social worker protection, and environmental management.
Frequently Asked Questions
- Is there a separate licensing process for each project or does the license cover multiple projects?
The licensing process and requirements mentioned in the code appear to be for establishing a business entity to provide these services, rather than for individual projects.
- What authorities are responsible for granting licenses to businesses under KBLI Code 43299?
Licensing for businesses under KBLI Code 43299 is handled by the Ministry or the Head of Agency, in line with Indonesian government regulations on risk-based business licensing.
- What ongoing obligations must businesses fulfill once they are licensed under KBLI Code 43299?
Licensed businesses must maintain records of their operations, adhere to quality standards for materials and equipment, ensure workplace safety and health, and comply with environmental management regulations.
- What kind of construction services does KBLI Code 43299 include for the mining and manufacturing sectors?
This code covers the installation of infrastructure necessary for mining and manufacturing, including facilities such as winding shafts, blast furnaces, and coke ovens.
- What advantages does setting up a PT PMA in Bali offer for foreign investors under KBLI Code 43299?
Setting up a PT PMA in Bali offers foreign investors strategic advantages like access to a growing market, regulatory support for large-scale investments, and the potential for high returns in a dynamic construction and installation services sector.
Please contact us for PT PMA for Building Services in Bali.
