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Dealing with Construction Permits in

Indonesia - Jakarta

Below is a detailed summary of the procedures, time and costs to build a warehouse in Indonesia - Jakarta. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information 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 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Indonesia - Jakarta to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain notarized copy of land ownership certificate

    Agency: Notary

    BuildCo must notarize a copy of the land ownership certificate before applying for the building permit.

    1 day IDR 25,000
    2

    Request city planning permit (KRK) and approval of the architectural drawing Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB) from City Planning Office

    Agency: Local Administrative Building Office - City Planning Office within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    BuildCo must submit a completed application form, along with the following documentation to the City Planning Office at the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP) in order to obtain the city planning permit (KRK):

    1. A copy of land ownership certificate (which has been notarized);
    2. A copy of the latest payment receipt for land and building tax;
    3. A copy of the identity card (KTP/Driving License) of the authorized representative of the applicant;
    4. A copy of the deed of establishment of BuildCo and its amendment (if any);
    5. A power of attorney (as necessary).

    The city planning official at the BPTSP will examine the application and will conduct a land situation measurement (the procedural details of which are elaborated in the next section below).]

    The KRK is a statement that contains planning information about the plot of land that BuildCo intends to build the warehouse on. The KRK also includes a city planning map scale (1:1000) signed by the Head of Jakarta City Planning Office. The city planning map covers information on:
    a. Building setback (GSB) - the borders within which BuildCo is allowed to construct the building
    b. Road border lines (GSJ) - the borders of the front yard or block borders or road control borders
    c. Land use plan - explanation about the benefits of the land
    d. Type of building
    e. Height of building in terms of floors/storey
    f. Floor area ratio (FAR/KLB) - the multiplication figure used to calculate the total area of building that is permitted
    g. Building coverage (KDB)
    h. Blocking - the arrangement of city spaces on certain lanes governing the length and width of the piece of land for which the city planning permit is being applied for

    BuildCo must also request approval of the architectural drawing Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB) from the City Planning Office. This plan outlines the exact position of the building on the city planning map and contains the following information (some of which is already contained on the city planning map previously):
    a. Building setback (GSB) - the borders within which BuildCo is allowed to construct the building
    b. Road border lines (GSJ) - the borders of the front yard or block borders or road control borders
    c. Building trace form and location
    d. Building usage
    e. Height of building, including KDB (building coverage) and KLB (floor area)
    f. Building cuts
    g. Parking lot
    h. Kelzar circulation/entry of vehicles

    Once the documents are submitted, BuildCo receives an invoice with the amount of fees that must be paid (SKRD). BuildCo must pay the fees at a local branch of Bank DKI and submit the receipt to the City Planning Office. The total cost to obtain these documents is IDR 1,482,000.00 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 sq. m.) a retribution of IDR 750,000.00
    • Print out of the map (scale of 1:1000), a retribution of IDR 1,000.00 per copy x 12 copies or a total of IDR 12,000.00
    • KRK for plans to use the land for warehouse construction (Karya pergudangan/Kpg) for a land area of up to 1,000 sq. m. is subject to a fee of IDR 40,000.00
    • Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB) for plans to build warehouse construction is subject to a fee of IDR 40,000.00/100 sq. m. of floor surface, so the total fee for the RTLB: IDR 40,000.00 x 13 (based on a 1,300.6 sq. m. floor surface) = IDR 520,000.00
    • Land marking for city planning implementation purposes (pematokan penerapan rencana kota) is subject to a fee of IDR 80,000.00 x 2 (because the building exceeds 1,000 sq. m.), or a total of IDR 160,000.00

    1 day IDR 1,482,000
    3

    Receive inspection from City Planning Office

    Agency: Local Administrative Building Office - City Planning Office within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    The City Planning Office inspects the site to plant the marks on the borders of the building.

    1 day no charge
    4

    Obtain KRK and Pengesahan Gambar Perencanaan Arsitektur (formerly known as RTLB) from City Planning Office

    Agency: Local Administrative Building Office - City Planning Office within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    After the inspection, the application is forwarded to different offices within the City Planning Office for approval. The location officer, the roads officer and the architectural officer approve the application and will prepare the land measurement letter. When the internal procedure is completed, the builder is notified (by phone, mail or electronically) and can pick up the KRK. The recommendation letter includes the documents listed previously.

    20 days no charge
    5

    Request and obtain the preparation of the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)

    Agency: External Consultant

    Prior to obtaining a UKL-UPL, BuildCo must obtain the KRK and Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB). BuildCo hires an external consultant that will prepare the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL). When they are ready, BuildCo will submit the documents to the relevant mayor or regent, governor of the DKI Jakarta province, or the Minister of Environment, depending on the location of the activities, to obtain a UKL-UPL recommendation.

    30 days IDR 15,000,000
    6

    Request and obtain the approval of the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)

    Agency: Regional Environmental Control Agency (BPLHD)

    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

    10 days no charge
    7

    Request and obtain building construction permit (IMB)

    Agency: Local Administrative Building Office - Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    When BuildCo has the complete set of documents (see below) and the application is submitted, the Supervision and Control 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 will only verify that the plot is vacant.

    The legal basis for this procedure is:
    • 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 is 15 days working days pursuant to Regulation 129 of 2012.

    The supporting documents required are:
    • Photocopy of the ID Card
    • Photocopy of the Land Certificate (notarized)
    • Land use permit (SIPPT)
    • KRK and Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB) (description and map of the city, including the complete plan of the building) obtained from the City Planning Office
    • Architectural, structural, mechnical and electrical as-built drawings (4 sets)
    • Results of soil investigation (4 sets)
    • Photocopy of the license to operate as a Building Planner
    • Photocopy of the license of the supervising director
    • Photocopy of the license of the architect, the structural engineer, the mechanical engineer and the electrical engineer who prepare the drawings
    • Statement of uncontested ownership of the land for which IMB is applied
    • Company’s Deed of Establishment
    • Company’s tax ID (NPWP)
    • Completed Application Form
    • Receipt of UKL-UPL or UKL-UPL •Recommendation from the BPLHD
    • Copy of evidence of tax payment for the most current year
    • Budget plan (if required)

    The Building Supervision and Control Office has 4 different teams that review the architectural, structural, mechanical and electrical drawings. The application is first reviewed by TPAK (the team that reviews the architectural drawings). This can take 3-4 weeks. The application is then forwarded to TPKB (team that reviews the structural drawings) and in parallel to TPIB (team that reviews the mechanical, electrical and plumbing drawings). This also takes about 3-4 weeks on average.

    According to Bylaw No. 3 on Building Tariff Rates of October 2012, the permit fee is calculated as follows:

    RPP = L x It x HSbg = 1,300.6 x 2.1 x 25,000

    • L = area of the building (1,300.6 sq. m)
    • It = index that is calculated as follows:
    Ikg x If x Ik x Iw x Ipt where Ikg = 1 (for a new building); If = 3 (for commercial buildings); Ik = 0.7; Iw = 1 (for permanent buildings); Ipt = 1 (if the building does not have a basement). Therefore, It = 1 x 3 x 0.7 x 1 x 1 = 2.1
    • HSbg = IDR 25,000 / sq. m.

    42 days IDR 68,281,500
    8

    Receive inspection upon completion of foundation

    Agency: Local Administrative Building Office - Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    According to the building regulations, the Supervision and Control Office must inspect during the various phases of construction.

    1 day no charge
    9

    Receive inspection upon completion of the structure

    Agency: Local Administrative Building Office - Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    According to the building regulations, the Supervision and Control Office must inspect during the various phases of construction.

    1 day no charge
    10

    Receive inspection upon completion of roofing

    Agency: Local Administrative Building Office - Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    According to the building regulations, the Supervision and Control Office must inspect during the various phases of construction.

    1 day no charge
    11

    Submit building completion report to Supervision and Control Office

    Agency: Local Administrative Building Office - Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    The construction completion and compliance report is a prerequisite for obtaining the certificate of proper functioning (SLF) and the 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. For the Doing Business case study, the supervising director would most likely be in-house.

    1 day no charge
    12

    Receive final inspection from the Fire Department

    Agency: Fire Department

    The Fire Department must conduct a final inspection once the building is completed. They will then issue a certificate of fire safety recommendations stating the building was built according to the proper safety standards. This fire safety certificate is needed in order to obtain the SLF.

    1 day no charge
    * 13

    Receive final inspection from the Supervision and Control Office

    Agency: Local Administrative Building Office – Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    Once the Supervising Director has submitted the completion report, the Supervision Office will conduct a final inspection to ensure that the building was built according to the conditions stipulated in the building permit. This can take about 3 - 7 working days. Once the inspection is completed, the Supervision Office will issue an SLF (certificate of proper functioning) within 35 - 38 working days.

    1 day no charge
    14

    Obtain water and sewerage connection

    Agency: PAM Jaya

    The application to obtain water and sewerage connection shall be submitted to PAM Jaya through its designated providers, which are PT AETRA Air Jakarta for warehouses located in the North and East regions of Jakarta, and PT PAM Lyonnaise Jaya (PALYJA) for warehouses located in the South, Central, and West regions of Jakarta.

    The application should be submitted along with the following documents:
    1. A copy of land and building tax documents;
    2. A copy of the KTP (the identity card) of BuildCo's director or the applicant;
    3. A copy of business license of BuildCo;
    4. The prediction on water needs.

    20 days IDR 30,492,880
    15

    Obtain SLF (certificate of proper functioning) from the Supervision Office

    Agency: Local Administrative Building Office – Supervision and Control Office (P2B) within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)

    The SLF is required under Law No. 25/PRT/M/2007 and Law No. 7/2010 on Buildings. The certificate is a declaration that the building has been built according to the conditions stipulated in the building permit and can be used in accordance with its intended function. BuildCo must submit the following documents in order to obtain the SLF:

    - Construction completion report from the supervising directors/consultant appointed by BuildCo
    - Application form
    - Copy of applicant’s ID card
    - Copy of notarized proof of land ownership
    - Copy of the building permit (IMB)
    - Architectural, structural and mechnical as-built drawings
    - Map and city plans (which are appended to the IMB)
    - Photo of the completed building (showing at least 3 sides of the building)
    - Notarized copy of the license of the supervising engineer, the architect, the structural engineer and mechanical engineer
    - Insurance of supervising engineer

    49 days no charge
    16

    Register the warehouse with the Regional Tax Services Unit

    Agency: Regional Tax Services Unit (Unit Pelayanan Pajak Daerah or UPPD) in the relevant Regional Government Office

    After the warehouse is built BuildCo must update its records at the Regional Tax Services Unit. While in theory this update can be done automatically, many builders do it in person to avoid delays. This is critical when a builder wants to sell the property or use it as collateral to obtain a loan.

    According to the Governor of DKI Jakarta Regulation No. 202 of 2012 on the Registration and Report Procedure as well as the Data Collection of Land and Building Tax for Rural and Urban Area ("Regulation 202/2012"), Regional Regulation of DKI Jakarta No. 16 of 2011 on Land and Building Tax for Rural and Urban Area ("Regulation 16/2011"), the following documents must be submitted by the BuildCo in order to register the warehouse:

    1. The completed application form;
    2. A copy of identity card of the BuildCo's director who signed the application form or a power of attorney from the director of the BuildCo (if required);
    3. A copy of the BuildCo's deed of establishment and its amendments (if any);
    4. A copy of the land and/or building certificate of the BuildCo;
    5. A copy of building permit (IMB) of the BuildCo;
    6. A photo of the building.

    11 days no charge
    * 17

    Register the warehouse with the Regional Office of the Ministry of Trade

    Agency: Ministry of Trade (Regional Office)

    In order to register the warehouse with the Ministry of Trade and obtain a warehouse registration certificate (Tanda Daftar Gudang or "TDG"), BuildCo must submit the following documents:

    1. A copy of the identity card (KTP) of the owner of or person responsible for BuildCo;
    2. A copy of the deed of establishment of BuildCo and its amendments (if any):
    3. A copy of building permit (IMB) of the warehouse; and
    4. Two photos of the owner of or person responsible for BuildCo with the size 4x6cm.

    During the submission of the above documents, the applicant must show the original documents to the officer. The holder of warehouse registration certificate is obliged to re-register the certificate every 5 years.

    Warehouses in a privately owned port, warehouses in a bonded zone, and warehouses adjacent to the plant are exempted from the registration requirement.

    9 days IDR 100,000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 1.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid. 0.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 2.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance ; Insurance is commonly taken in practice. 1.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0