Foreign Investor FeasibilityKBLI 42203
§ 01
Foreign investment rules
Indonesia's BUPM (Investment Business Fields) regulation places this code into one of five tracks. The track determines whether a foreign investor (PMA) can operate in this activity at all, and under what conditions.
Status · Open with carve-outs
Open to foreign investment, with carve-outs
KBLI 42203 is open as a class — a 100% foreign-owned PT PMA can be incorporated under this code — but Pres. Reg. 10/2021 carves out 1 specific sub-activity that are off-limits or restricted for foreign capital. The rest of the activity remains open to PMA. The carved-out items are listed below; any of them needs to be either avoided, served via an Indonesian operator, or structured around case-by-case.
Listed restrictions
Reserved for SMEs / cooperatives
1- Construction of wastewater treatment, distribution, and storage facilities and/or low and medium risk.Allocated for Cooperatives and UMKM.Sector: Public Works and Housing
§ 02
How we handle your KBLI 42203 setup
Emerhub is a corporate-services provider in Indonesia. We do the legal and regulatory legwork for foreign investors so you can focus on the business itself. Here's what the engagement looks like.
- 1
Confirm the optimal structure for your business
2–3 business daysWe confirm KBLI 42203 is the right primary code for your business, advise on secondary codes you may also need, and finalize the holding structure with you before any filing.
What we need from you- Founders' passport copies and proof of residence
- Intended share split and board composition
- 2
Incorporate your PT PMA
7–10 business daysWe draft the Articles of Association before a notary, register the entity with the Ministry of Law & Human Rights (Kemenkumham), and obtain the company's tax ID (NPWP). Under BKPM Reg. 5/2025, paid-up capital is IDR 2.5 billion (~USD 160K) — the cash actually deposited at incorporation. The IDR 10 billion+ figure many sources still cite is the total investment commitment per KBLI, realised over time via your LKPM reports.
Get an exact quote and timeline for KBLI 42203, scoped to your specific business plan.
Request a quote§ 05
Licensing requirements in detail
Specific permits, application requirements and ongoing obligations vary by business scale and the sub-activity within this KBLI. We file these on your behalf — this section is for transparency on what we'll be handling. Switch between scales below; by default we show Large (the PMA scale).
Sub-activity scope
Subclassification Code for Civil Infrastructure Construction and Facilities for Solid, Liquid, and Gas Waste Treatment Systems: BS006
What's required to operate
NIB
Preparation only — additional permit needed below
Standard Certificate (Verified)
Important: NIB is issued for the preparation stage. To begin commercial operations, the operator must obtain a Sertifikat Standar that has been verified by the competent ministry. The verification step typically requires a site or document inspection. Operating with NIB alone is not legally compliant.
Processing time
15Days
Statutory turnaround
Application requirements
3Documents and capabilities you must demonstrate at registration
- 01Standard Number for Determining the Competence of Construction Service Business Entities (SBU PB-UMKU Number)
- 02For the Representative Office of a Foreign Construction Company: a. It must be a legal entity engaged in construction services in the country of origin. b. Pay the administrative licensing fees per type of business in accordance with applicable regulations.
- 03For PMA Construction Companies: a. Foreign investors/shareholders must be a legal entity in the construction services sector in their home country, evidenced by: 1) A legalized deed of establishment 2) A licensed construction services business certificate of large qualification in the home country or a similar document that is legalized b. Domestic investors/domestic shareholders must be a national construction services entity of large qualification, evidenced by: 1) Business license for the construction services sub-sector 2) Business entity certificate for the construction services sub-sector
Ongoing obligations
4Compliance and reporting duties throughout operation
- 01Submit the Annual Business Activity Report.
- 02The SBU is still valid.
- 03Implement the provisions of the legislation in the field of construction services.
- 04For the Representative Office of BUJKA: a. Extend the Standard Certificate according to the sub-classification every 3 years. b. Establish a Joint Operation (KSO) with a large qualified BUJKN that has a similar classification/sub-classification registered with the construction service development agency before participating in the selection process. c. KSO for the implementation of Construction Work or Integrated Construction Work shall be carried out under the following technical criteria: 1) At least 50% (fifty percent) of the construction work cost must be executed domestically. 2) At least 30% (thirty percent) of the construction implementation cost must be executed by the KSO partner BUJKN.
Issuing authority
The authority that issues the license depends on your situation.
| Authority | Applies when |
|---|---|
| Minister/Head of Agency | Construction Services Business Entities (BUJK) and Representative Offices of Construction Services Business Entities (BUJKA) |
| Minister/Head of Agency | Foreign Investment |
Speak to Emerhub
Get your KBLI 42203 setup handled end-to-end.
Emerhub is a corporate-services provider in Indonesia. We handle PT PMA incorporation, licensing, tax registration and monthly compliance — so you focus on operating the business.