What are the benefits of having an SBUJK for construction service companies? SBUJK is a certificate that must be owned by companies operating in the construction sector.
This is in accordance with Government Regulation No. 5 of 2021 concerning Risk-Based Business Licensing and Ministry of Public Works and Housing Regulation (PERMEN PUPR) No. 8 of 2022 regarding Procedures for Fulfilling Construction Services Standard Certification to Support Business Licensing for Construction Service Entrepreneurs.
What Is SBUJK?
The Construction Services Business Entity Certificate (SBUJK) is an official document or license issued by the Construction Services Development Board (LPJK) or other authorized bodies. SBUJK serves as proof that a company or business entity has met the qualifications and classifications to carry out construction activities.
Based on the company’s business fields and expertise, SBUJK is categorized into two types: SBUJK for Planning or Consulting and SBUJK for Construction Implementation.
Benefits of Having an SBUJK
More than just a legal certificate, here are 9 benefits of having an SBUJK for construction service providers:
1. Legal Compliance
Construction companies with an SBUJK have met the legal and regulatory requirements. All activities are conducted in compliance with applicable laws, helping the company avoid sanctions.
2. Strengthening Company Reputation
Companies with an SBUJK are considered more professional and have fulfilled the requirements as construction service providers, making them more trustworthy for large project organizers from both government and private sectors.
3. Expanding Business Networks
With an SBUJK, construction companies can establish collaborations with various parties and participate in strategic project tenders. This opens new opportunities and expands business networks.
4. Business Diversification
Beyond enhancing reputation, SBUJK is a golden key to entering the mining and oil & gas sectors. Companies can offer construction infrastructure services in mining and oil & gas projects. This expansion can significantly increase company revenue.
5. Access to Large-Scale Projects
SBUJK enables construction companies to participate in various large-scale projects organized by government or private sectors. It allows companies to join tenders for major projects such as building construction, public infrastructure, or strategic industrial facilities.
6. Opening Global Investment Opportunities
SBUJK is a primary requirement for construction service companies to establish joint ventures through Foreign Direct Investment (FDI) with foreign investors. Access to global networks, fresh capital, and international expertise are lucrative opportunities the company can gain.
7. Enhancing Corporate Image
Companies with an SBUJK are perceived as professional, reliable, and competitive. A strong corporate image will attract investors and other stakeholders.
8. Complete Licensing
Companies with complete licenses can operate legally and freely. SBUJK is one of the mandatory requirements to obtain other business licenses such as Foreign Construction Services Business Entity Representative Office License (BUJKA) and National Construction Services Business License (IUJK).
9. Lower Taxes
The last benefit of having an SBUJK is tax savings. The applicable Income Tax (PPh) rate is lower based on the SBU classification, thus increasing business profits and company earnings.
Those are the 9 benefits of having an SBUJK for construction service companies. If you wish to handle business licensing but have time constraints, you can use reliable and trusted professional services.
Elmar Konsultan Bisnis Indonesia provides comprehensive consulting services with end-to-end business solutions. Available services include business consulting & PMA establishment, business permits & licenses, trademark registration, tax & accounting services, corporate secretarial services, and many more.