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Starting a Construction Companies in Indonesia

 Foreign investors are allowed to start a construction company in Indonesia by forming 

a joint venture company (PT-PMA)


Under the current Negative Investment List, Presidential Regulation No. 44 of 2016, the fields of construction contractor and construction consultant are open for foreign investors wishing to do business and setting up a new construction company in Indonesia. 

There are several things to consider before starting a construction company in Indonesia

Before starting your business, think about the type of construction services your company will provide as a construction contractor or construction consultant.


What kind of construction services that allowed for PMA company in Indonesia?

Type of construction services business activities that allowed for PMA company in Indonesia consists of construction contractors and construction consultants


The scope of business activities based on the classification of construction contractors; 

Building contractors, warehouse and industrial building, concrete work, civil construction, foundation work (including pile driving), construction equipment rental,  installation mechanical and electrical, fabrication and construction, speciality contractor, onshore and offshore pipeline installation including integrated construction services (EPC).

The scope of business activities based on the classification of construction consultancy;

Architectural design, engineering design, integrated engineering design, urban planning, testing and analysis, technical inspection services, surveying services, geologic and geophysical surveying, project management, treatment and disposal of non-hazardous waste, etc.


The main requirements that you need to know to start a construction company in Indonesia

Busines Entity

Type of Company


Minimum Paid of Capital

local partners for joint venture  


How to start a construction company in Indonesia

Starting a Construction Company in Indonesia can only be done by foreign investors through the establishment of a joint venture company in the form of a limited liability company (PT PMA) with an Indonesian construction company has a specific qualification.



At the beginning of setting up a a new company, it is advised to decide the place and building where office is going to be located first, as the address of the proposed office will have to be mentioned in the application for approval. The business address must be located in commercial buildings.  Determine the location of the business is very important because any change of address must be accompanied by changes to all existing license company and of course this will take time and cost.  

In order to set up a PT PMA in Indonesia, at least 2 shareholders are required and one individual must hold the role of President Director and the other as President Commissioner. As a foreign President Director, an Indonesian tax number called an NPWP and a work permit called a KITAS is required as according of BKPM regulations. Alternatively, a nominee director who already holds a KITAS or a native Indonesian President Director can be appointed.


A. The process of establishment of PMA companies (BUJK PMA)

Step 1: Foreign Investment Permits

Step 2: Incorporation of PT-PMA

Step 3:  Company Registration & Other Permits 


Once your PT-PMA company is incorporated, you will need to obtain a business entity certificate (SBU) issued by LPJK through the process of Certification and Registration.  

The SBU is required in order to apply for construction services business licenses (IUJK).

We offer standard and premium package for the establishment of a new company in Indonesia in the form of Limited Liability Company/or PT-PMA.


B. Certification and Registration Services

To apply for certification and registration, you will need to choose your classification and sub-classification according to the type of your business for Construction services in Indonesia. 

Step 4: Expertise certificate (sertifikat keahlian or SKA) 

Step 5: Registration as a member of association of construction company 

Step 6: Business entity certificate (sertifikat badan usaha or SBU) 


C. Business License

Step 7: Construction Services Business License (IUJK)



Starting a construction company in Indonesia