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Ease of Doing Business in

Surabaya - Indonesia

Region East Asia & Pacific
Income Category Lower middle income
Population 257,563,815
GNI Per Capita (US$) 3,440.00

This page summarizes Subnational Doing Business in Indonesia 2012 data for Surabaya. The first table shows its rank among 20 cities/regions in Indonesia. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Topic Rankings Rank among 20 cities in Indonesia Top city in Indonesia
Overall n.a. n.a.
Starting a Business 14 Yogyakarta
Dealing with Construction Permits 16 Balikpapan
Registering Property 11 Bandung
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STANDARDIZED WAREHOUSE
Estimated value of warehouse: IDR 4,552,100,000
City: Surabaya
Indicator Surabaya East Asia & Pacific OECD
Procedures (number) info_outline 11.0 15.0 12.1
Time (days) info_outline 116.0 134.1 152.1
Cost (% of warehouse value) info_outline 71.2 2.1 1.6
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Notarize copy of Land Certificate at Notary Office

    In order to be able to undertake some of the necessary procedures for the construction of the warehouse, BuildCo must legalize a copy of the land ownership certificate with a notary. The cost of this procedure is the product of the negotiation between the parties.
    3 days IDR 50,000
    2

    Request City Planning Statement (SKRK) at Surabaya one-stop shop (Unit Pelayanan Terpadu Satu Atap)

    In order to obtain the City Planning Statement, BuildCo must submit the following documents:

    a. Application Form (available at Surabaya one-stop shop);
    b. Copy of identity card of the applicants;
    c. Copy of Property Tax invoice and receipt;
    d. Legalized copy of land ownership certificate.

    As it submits the documents, BuildCo is interviewed about the project details. After that, the Surabaya one-stop shop checks adherence of location with master plan and calculates the retribution charges. BuildCo pays the fees at the Surabaya one-stop shop and the file is transferred to the City Planning Agency (Dinas Cipta Karya dan Tata Ruang). City Planning Office representatives inspect the future building site, measure the location, prepare drawings, and position the future building's plot in technical master plan. They also prepare location drawings (with border, base coefficient, size coefficient, and technical requirements). When all is complete, the City Planning Agency evaluates, registers, and approves the application. Once the application has been approved, the City Planning Office transfers the file to the Surabaya one-stop shop which then notifies BuildCo that the statement is ready for pick up.

    Regulations establish a statutory time of 10 days for the City Planning Statement to be issued, but it usually takes longer.

    This procedure is governed by the following regulations:
    a. Local Regulation No. 7/2003, regarding charges on City Planning Statement, implemented since 2004;
    b. Mayor Decree No. 31 / 2004, regarding implementation of Local Regulation No 7/2003, implemented since 2004;
    c. Mayor regulation No. 36/2005, regarding City Planning Map, implemented since 2005.

    1 day No cost
    3

    Receive inspection from City Planning Agency (Dinas Cipta Karya dan Tata Ruang)

    A technical team of the City Planning Agency inspects the future building site and measures the location in the presence of BuildCo representatives.
    1 day No cost
    4

    Obtain City Planning Statement (SKRK) from Surabaya one-stop shop (UPTSA)

    Costs based on Mayor regulation No. 31/2004 and Local regulation No. 7/2003.
    28 days IDR 2,822,000 [(0.01 x Plot area x Taxation value x Location Index) + administrative costs of IDR 35.000]

    5

    Obtain Environmental Monitoring Plan and Environmental Management Plan (UKL/UPL) approval from local Environmental Control Agency (BLH)

    In order to obtain the approval of environmental document, BuildCo must submit the following documents to the Local Environmental Agency:

    a. Environmental document (prepared by BuildCo);
    b. City Planning Statement and City Planning Map;
    c. Building Construction Permit Application Form.

    Based on Regulation No. 7/2009 regarding Building Construction Permit, implemented since January 2011, this procedure is mandatory.
    1 day No cost
    6

    Obtain Building Construction Permit (IMB) from Surabaya one-stop shop (Unit Pelayanan Terpadu Satu Atap)

    In order to obtain the building construction permit, BuildCo must submit the following documents:

    1. Administrative Requirements:
    a. Application form and statement letter of construction requirement adherence;
    b. Copy of ID card of BuildCo's director;
    c. Copy of Property Tax Receipt;
    d. Copy of Land Ownership Certificate;
    e. City Planning Statement (SKRK);
    f. Construction Accountability Statement, prepared by BuildCo's architect;
    g. Picture of the site and building plans, prepared by BuildCo's architect.

    2. Technical Requirement prepared by BuildCo:
    a. Design drawing 3 copies :
    - Landscaping (scale 1:1000/1:5000),
    - Lay out (scale 1:100),
    - Foundation base, roof, sanitation (1:100);
    b. Structure drawings.

    Relevant regulations:
    a. Local regulation No. 17/1999, implemented since 1999;
    b. Local regulation No. 7/2009, implemented since January 2011.
    30 days IDR 14,225,800
    7

    Obtain official report on completion of construction and compliance with building permit from City Planning Agency (Dinas Cipta Karya dan Tata Ruang)

    28 days IDR 62,500
    8

    Register warehouse with Local Revenue Agency (Dispenda)

    The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. The SPOP must be signed by the taxpayer and submitted to Local revenue agency (Dispenda) in the area where the warehouse is to be built, no later than 30 days after receipt of the SPOP. The following documents should be included:

    a. The latest Payable Tax Notification Letter;
    b. Copy of the land certificate;
    c. New tax object registration number (nomor penerbitan obyek pajak baru).
    2 days No cost
    9

    Register the warehouse with Surabaya one-stop shop (Unit Pelayanan Terpadu Satu Atap)

    In order to register the warehouse with the Surabaya one-stop shop, BuildCo must submit the following documents:

    a. Copy of ID Card;
    b. Copy of Construction Permit (IMB);
    c. Copy of certificate of land ownership;
    d. Copy of Business Trading License (SIUP) and Company Registration (TDP);
    e. BuildCo's director's pictures (2 copies - size 4x6 cm).

    The legal basis for this procedure are local regulation No. 1/2010, regarding warehouse registration charges, and Mayor regulation No. 35/2010, regarding warehouse registration procedures. Both regulations have been implemented since 2010.
    1 day No cost
    * 10

    Request and connect to water and sewage with PDAM

    The company notifies the Industrial Manager that the warehouse is ready for utility hook-ups.
    21 days IDR 1,500,000
    * 11

    Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom)

    The company notifies the Industrial Manager that the warehouse is ready for utility hook-ups.
    2 days IDR 450,000

    * Takes place simultaneously with previous procedure.