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Legality

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9 Benefits of Having an SBUJK for Construction Companies

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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?

Source : Envato

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

Source : Envato

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.

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Breakdown of Business Registration Costs for UMK and Non-UMK

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Officially registering a business is a crucial step for any entrepreneur aiming to grow their venture safely and legally. Beyond offering legal protection, business registration also enhances credibility in the eyes of consumers and investors. However, many remain unsure about the costs involved—especially for Micro and Small Enterprises (UMK) and larger-scale businesses (non-UMK).

In this article, we’ll break down the registration costs for both UMK and non-UMK businesses to help you better understand the budget needed for legalizing your venture. Read on for the complete guide!

Business Registration Costs for UMK

Source : Pexels

UMK refers to businesses with capital of less than IDR 5 billion (excluding land and buildings). The Indonesian government has made it easier for micro and small businesses to register officially, offering more affordable costs.

Here are the main cost components for UMK business registration:

  • Business Identification Number (NIB) Registration: Free via the OSS (Online Single Submission) system.
  • Halal Certification for Food and Beverage Products: Free for eligible UMK businesses.
  • Trademark Registration: Starting from IDR 2,490,000 per class for UMK.
  • Deed of Establishment: IDR 1,000,000 to IDR 2,500,000 depending on the notary and region—some areas may charge higher rates.
  • Tax Registration and Company Tax ID (NPWP): Free, but additional fees may apply if using tax consulting services.

The government also offers several incentives for UMK that officially register, such as access to financing and eligibility to participate in government tenders or projects. Therefore, although some costs are incurred, the long-term benefits are substantial.

Be sure to meet all requirements to ensure your business operates smoothly and legally.

Business Registration Costs for Non-UMK

Source : Pexels

Non-UMK businesses are those with capital exceeding IDR 5 billion. Due to their larger scale, the registration process for non-UMK businesses generally involves higher costs and more comprehensive legal requirements.

Key cost components include:

  • Business Identification Number (NIB) Registration: Free via OSS, but additional administrative fees may apply if using a consultant.
  • Trademark Registration: IDR 3,490,000 per class for non-UMK businesses.
  • Deed of Establishment and Company Legalization: Ranging from IDR 5,000,000 to IDR 10,000,000, depending on the complexity of the company.
  • Tax Registration and Company Tax ID (NPWP): Free, but fees may apply for consulting services.
  • Special Business Licenses (e.g., industrial or distribution permits): Varies by sector, typically between IDR 3,000,000 and IDR 10,000,000.

Non-UMK businesses should also budget for additional costs such as environmental permits, industry standard certifications, and other legal compliance requirements. These are essential to ensure uninterrupted operations and avoid legal complications in the future.

The business registration process—whether for UMK or non-UMK—can be complex and time-consuming, especially for those unfamiliar with applicable regulations. However, handling this process is essential to ensure your business operates legally and efficiently.

If you’re feeling overwhelmed, Elmar Consultant Business Indonesia is ready to assist with your business registration costs and the entire legal process, including trademark registration. Contact Elmar now to get professional consultation and make your business legally compliant quickly and easily!

Breakdown of Business Registration Costs for UMK and Non-UMK Read More »