For companies engaged in construction and engineering as well as electric power industry, having a construction or electricity qualification (SBU) is a must to be able to properly conduct business activities in Indonesia. At the same time, SBU is also an important document for participating in government project tenders. In some cases, the SBU must be changed, which will be explained in this article.
#Description of SBU Construction
The construction qualification (SBU) will directly determine the project payment tax rate. For foreign limited liability companies in the construction industry, non-ASEAN countries can only hold up to 67% of shares (ASEAN countries can hold up to 70%), and whose shareholders must be construction companies, you need to find a joint venture with a local Indonesian construction company that has qualifications corresponding to Class B, with a minimum shareholding of 33 percent by the Indonesian side.
Construction qualifications are categorized into K, M and B levels. For foreign construction companies and construction representative offices, they can only apply for the B level, which is the highest level of construction qualification, while local construction companies can upgrade from K level to B level step by step.
According to the type of service, construction qualification is further divided into consulting service, construction service and EPC service qualification. Consulting and construction qualification cannot be applied separately in the same company, if both are needed, you can choose EPC qualification.
The required documents for the construction qualification are: Construction Association Membership (KTA), Expertise Certificate (SKK), ISO 37001 and SBU certificates. With construction qualification (SBU), a company can activate its business license and conduct business activities in Indonesia.
#Change of SBU Construction
Changes of the following documents will directly affect the SBU change:
1. Change of company name, office address;
2. Change of company’s director (chairman) / change of chief representative;
3. Changes of the company’s construction qualification documents: e.g. change of Construction Association Membership (KTA), people in charge of engineering or classification, ISO certificate.
It is important to note that according to Government Regulation No. 5 of 2021 on the Implementation of Risk-Based Business Licensing (PP5/21), changes of construction qualifications processed before 2022 need to be reprocessed.
#Procedure of SBU Construction Change
To change the construction qualification (SBU), you need to provide the collected information to the government, and after the audit, you can get the activated business license (SS/IZIN).