*Updated on 20th November (Published on 14th August, 2021)
Have you been concerned like;
“I am not sure the flow and how to apply for construction permit in Indonesia.”
“I would like to know about Authority procedure in Jakarta, Indonesia.”
For project managers who are launching construction projects in Jakarta, Indonesia, we have summarized the flow of Indonesian construction permit applications, government office applications, and points to note when obtaining business licenses and applying for permits.
This article was created by Plus PM Consultant Sdn. Bhd., which provides project management and construction management as a construction consultant and supports companies expanding into the ASEAN region and expanding their business.
Schedule for building permit and confirmation in Indonesia
In Jakarta, a building permit PBG (Persetujuan Bangunan Gedung) or equivalent permit must be obtained before construction begins. Before a building can be used, it is necessary to obtain a functional qualification certificate (SLF: Sertifikat Layak Fungsi) and SLO (Sertifikat Layak Operasi), which is equivalent to a building confirmation certificate.
Generally, permit procedures can be divided into those for industrial parks and those outside industrial parks. As the permitting process varies by municipality, this article focuses on the Special Capital Region of Jakarta, where the majority of foreign investment is concentrated.
In Jakarta, there are few individual applications to the relevant authorities before obtaining PBG and SLF. However, the licensing process and timeframes are so complex that a licensing consultant is usually appointed to assist in filing and coordinating with the authorities for approval.
Schedule till obtaining SLF and SLO
Here is the ordinary schedule till obtaining SLF.
| STEP1 | An architect creates layout drawings and floor plans. |
| STEP2 | Permit consultant submits to authorities along with construction permit application. |
| STEP3 | Officials check the site and do some assessment. |
| STEP4 | Receiving Building Permit PBG Permit |
| STEP5 | Commencement of construction |
| STEP6 | Inspection after completion |
| STEP7 | Issuance of SLF and SLO |
Documents required for Authority application
The construction permitting process in Indonesia involves various designers and authorities.
The following items are required to obtain the PBG certification. The first drawings required to be submitted are mainly architectural drawings, Soil investigation report, Land survey, detail structural calculation and drawings, MEP calculation and drawings Detailed information on production equipment, utility equipment, fire protection equipment, etc. is requested in the application and is often not required at the initial stage.
SIPPT (Usage of the land)
RTLB (Block plan)
KRK (Plan)
TABG-AP (Site layout and Construction and architectural floor plan)
TABG-SG (Foundation and superstructure)
TABG-ME (Mechanical and electrical equipment)
In addition to the above, depending on the size of the project, it may also include:
AMDAL (Environmental Impact Study)
ANDALALIN (Traffic Impact Assessment)
Peil Banjir (Flood Level)
IMP (Infrastructure Permit)
Dewatering Permit (with basement)
KKOP (Height restriction)
IPAL (Waste Water Treatment Plant)
SLF and business licenses/permits
The Indonesian government allows you to apply for a business license online through OSS (Online Single Submission).
A business license is issued after the applicant obtains a location permit, building permit, and environmental permit (if needed), all of which are communicated via the OSS system, indicating that the business permit is now valid.
What is OSS System?
The OSS system is a web-based platform launched by the Indonesian government in September 2017 designed to simplify and speed up business licensing procedures in Indonesia and attract more direct investment.
It was introduced as a solution to many problems in the licensing process, including lack of coordination between administrative agencies, slow government procedures, and lack of information transparency.
Difference between industrial parks and non-industrial parks
The difference between industrial parks and non-industrial parks is that industrial parks already have infrastructure such as roads, drainage pipes, security, power and water, which can reduce the risk of a business owner’s project. Non-industrial parks require clearing the jungle and starting complex processes from scratch.
Benefits of industrial parks
- The permitting process is not complicated and can proceed smoothly as long as you have the necessary documents ready.
- You can start construction with just a general license before obtaining a construction permit through KLIK or Fast Track.
- Saves time for applying utilities such as electricity and water
Therefore, most foreign investors who want to set up factories or warehouses choose industrial parks.
The important points when submitting to the Indonesian Authority
The procedure for applying for a construction permit in Indonesia is different from that in ASEAN countries such as Malaysia and Singapore, so a permit consultant is hired in addition to an architect.
In addition, the permit schedule must be considered according to the facility type, ordering method (design-build separation, design-build package, etc.), and the business owner’s schedule. As mentioned above, the licensing process differs depending on the industrial park, so the method of proceeding with site selection is also important.
It is important to know all the necessary requirements of the application documents and provide good consultation negotiations with the authorities. Insufficient information will result in a rejected submission and a longer approval process. It is very important to hire an experienced permitting consultant.
Related government offices
Construction – Dinas Cipta Karya
Firefighting – Dinas Penanggulangan Kebakaran dan Penyelamatan Provinsi DKI Jakarta/or depend on the local authority. For example for Industrial Estate BEFA it is DAMKAR Kabupaten Bekasi.
Environment – Dinas Lingkungan Hidup DKI Jakarta or depends on the local authority. For example for Industrial Estate BEFA it is Dinas Lingkungan Hidup Kabupaten Bekasi.
Water supply – PDAM (Perusahaan Daerah Air Minum)
Electricity – PT PLN (Perusahaan Listrik Negara)/ or depends on Industrial Estate, for example in BEFA there is Cikarang Listrindo instead of PLN è for industrial purposes only.
TEL – PT Telkom Indonesia or depends on Industrial Estate or area, for example in BEFA there is KLBD instead of Telkom.
Sewage treatment – Dinas Cipta Karya
Summary
- It is recommended that construction land be acquired in an industrial park.
- It is necessary to obtain PBG before starting construction.
- SLF is required to obtain a business license.
- Use a permit consultant in addition to a designer for government applications
- Paying attention from the land selection stage as each industrial park has its own schedule for construction permit applications and government applications.
For those who are considering investment in Indonesia
Plus PM Consultant Sdn. Bhd. has experience working on projects in Jakarta, Indonesia and will be able to check on the due process of the permitting procedures by checking and monitoring design for compliance and monitor the submission process to each authorities, as per the sequence.
Plus PM Consultant has also collaborated with experienced local Permitting Consultant, Designers and Project Management companies on projects in Indonesia.
Furthermore, Plus PM being a Japanese company has access to latest information from Japanese business community, chamber of trade & industry and embassy.
This article is produced by Plus PM Consultant Sdn. Bhd. based on Indonesia’s local information obtained through news coverage, as well as the links and references stated below.
We go to great length to ensure that the informational contents on this website and article are as accurate as possible. However, the accuracy of the contents of the article is not always guaranteed. Unauthorized reproduction of these contents is not allowed
≫Citation, references, bibliography
OVERSEAS CONSTRUCTION AND REAL ESTATE MARKET DATABASE国土交通省：海外建設・不動産市場データベースサイト
INDONESIA INVESTMENT COORDINATING BOARDインドネシア投資調整庁（BKPM）
