Dealing with Construction Permits in
Indonesia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
IDR 4,552,100,000
- City: Jakarta
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request Pre-approval letter from Zoning Department
The total cost to obtain Pre-approval letter is IDR 1,482,000 according to Article 123 of the Regional Regulation No. 1 Year 2006.
The following is the detailed calculation:
- Land measurement (based on the land certificate, namely 500-1,000 m2) a retribution of IDR 750,000
- Print out of the map (scale of 1:10000), a retribution of IDR 1,000/copy x 12 copies or a total of IDR 12,000
- KRK for plans to use of a land for warehouse construction (Karya pergudangan/Kpg) for a land area of up to 1,000 m2 is subject to a fee of IDR 40,000.00
- RTLB for plans to build warehouse construction is subject to a fee of Rp. 40,000.00/ 100 m2 of floor surface, so the total fee for the RTLB: IDR 40,000.00 x 13 (based on a 1,300.6 m2 floor surface) = IDR 520,000.00
- Land marking for city planning implementation purposes (pematokan penerapan rencana kota) is subject to a fee of IDR 80,000 x 2 (because the building exceeds 1,000 m2), or a total of IDR 160,000
Agency: Local Administrative Building Office - Zoning Office
|
1 day
|
IDR 1,482,000
|
| 2 |
Receive inspection from Zoning Department
Zoning Office inspects the site to confirm that application submitted by the builder meets the requirements
Agency: Local Administrative Building Office - Zoning Office
|
1 day
|
no charge
|
| 3 |
Obtain Pre-approval letter from Zoning Department
After the inspection, the application its forwarded to different offices within the Zoning Office for approval. The location officer, the roads officer and the architectural officer approve the application. When internal procedure it's completed, builder it's notified (by phone, mail or electronically) and can pick up the Pre-approval letter. The recommendation letter includes the documents listed in procedure 1.
Agency: Local Administrative Building Office - Zoning Office
|
20 days
|
no charge
|
| * 4 |
Request and obtain notarized copy of Land Ownership certificate
Builder needs to notarize a copy of the Land Ownership certificate before applying for the building permit.
Agency: Notary
|
1 day
|
IDR 25,000
|
| 5 |
Request and obtain the preparation of the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)
BuildCo hires an external consultant that will prepare the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL). When this is ready BuildCo will submit the documents to the Local Environmental Management Agency (BPLHD) for the Province of DKI Jakarta for approval.
Agency: Regional Environmental Control Agency (BPLHD)
|
8 days
|
IDR 15,000,000
|
| 6 |
Request and obtain the approval for the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)
The legal basis for this procedure is:
- Law No. 32 of 2009 regarding the Environment
- Decision of the Minister of the Environment No 86 of 2002 on Implementation of UKL and UPL
Agency: Regional Environmental Control Agency (BPLHD)
|
10 days
|
no charge
|
| 7 |
Request and obtain building construction permit (IMB)
When applicant has the complete set of documents (see below) and application is submitted, the Permit Office will conduct an inspection. Given that the plot where the warehouse will be built is empty, no representative from BuildCo needs to be present. Officials from the Permit Office will only verify that the plot is vacant.
The legal basis for this procedure is:
- Decree of the Governor of the Province of DKI Jakarta No. 76 Year 2000, Article 2 paragraph (2) b
- Regulation of the Head of the Local Building Supervision and Control (P2B) Office No. 21 Year 2009, Annex I point I.b
- The legal basis for the time to complete this step in 14 days working days (21 calendar days) is the Regulation of the Governor of DKI Jakarta Number 85 of 2006, article 11 paragraph
- According to the Regional Regulation of the Province of DKI Jakarta Number 1 Year 2006 concerning Regional Retribution, the formula to calculate the fee for this permit is IDR 7,000 per square meter. Since the warehouse considered in the case study has an area of 1,300.6 square meters the cost then will be 7,000 * 1,300.6 = IDR 9,104,200.
The supporting documents required are:
- Photocopy of the ID Card
- Photocopy of the Land Certificate (notarized)
- KRK and RTLB from City Planning Office from the Local City Zoning Office (included in Pre-approval letter)
- As Built Drawing (Architecture; Construction, and Installation) for the Warehouse Construction to be built
- Photocopy of the license to operate as a Building Planner
- Statement of uncontested ownership of the land for which IMB is applied
- Company’s Deed of Establishment
- Completed Application Form
- Receipt of UKL-UPL or UKL-UPL Recommendation from the BPLHD
Agency: Local Administrative Building Office - Permit Office
|
21 days
|
IDR 9,104,200
|
| 8 |
Request and obtain the building completion and compliance minutes
The construction completion and compliance report is a prerequisite for obtaining a usage permit. The party issuing the official report on the completion of the construction and compliance with the building permit is the Supervising Director, who can be an individual, a group of experts, or an entity appointed by the project owner to supervise the construction work. The individual or group of experts must be independent of BuildCo and cannot be its employees.
Agency: Land and Building Tax Office
|
28 days
|
IDR 62,500
|
| 9 |
Obtain building usage permit (IPB)
BuildCo must submit the following documents to the City Planning Office:
The supporting documents required are:
- Building drawings
- Copy of the IMB
- Warehouse Construction Completion Report from the Supervising Directors/Consultant appointed by BuildCo
- An official report from the Supervising Director comprising (Minutes of completion of the warehouse construction and compliance):
-- A copy of the letter of appointment of the contractor and Supervising Director and the Coordinator of the Supervising Director.
-- A copy of the TDR of the contractor and work permit of the Supervising Director.
-- A report on construction stages from the Supervising Director.
-- A statement from the Coordinator of the Supervising Director that the warehouse has been completed in accordance with the building permit (IMB).
The legal basis for this procedure is:
- Decree of the Governor of the Province of DKI Jakarta No. 76 Year 2000, Article 9 paragraph (4) b
- Regulation of the Head of the Local Building Supervision and Control Office No. 21 Year 2009, Annex I point II.b
Agency: Building Control Department (Local Authority)
|
49 days
|
no charge
|
| 10 |
Register with land and building tax office
After the warehouse is built BuildCo needs to update its records at the Land and Building Tax Office. Even if this update is supposed to be done automatically, many builders do it personally to avoid delays. This is critical when builder wants to sell or obtain a loan with the property.
Agency: Land and Building Tax Office
|
11 days
|
no charge
|
| 11 |
Register the warehouse with the regional office of the ministry of industry and trade
The company must submit the following documents: a copy of the trade business license; a copy of company registration code; a copy of the owner’s or shareholders’ identity card(s); a copy of the taxpayer number; a copy of warehouse lease agreement (if the warehouse is leased); a copy of the building permit (IMB); a copy of the map of the warehouse. Warehouses in a privately owned port, warehouses in a bonded zone, and warehouses adjacent to the plant are exempted from the registration requirement.
Under the new government, the Ministry of Industry and Trade has been divided into the Ministry of Industry and the Ministry of Trade. The warehouse registration is conducted with the regional office of the Ministry of Trade.
Agency: Ministry of Industry and Trade (Regional Office)
|
9 days
|
IDR 100,000
|
| * 12 |
Obtain water and sewerage connection
The company notifies the industrial manager that the warehouse is ready for utility hook-ups.
Agency: PAM Jaya
|
8 days
|
IDR 2,000,000
|
| * 13 |
Obtain phone connection
The company notifies the industrial manager that the warehouse is ready for utility hook-ups.
Agency: PT. Telekomunikasi Indonesia Tbk (Telkom)
|
4 days
|
IDR 500,000
|
* Takes place simultaneously with another procedure.