Site Preparation.
Last updated · Sourced from OSS Indonesia
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Operating license routes through Ministry of Public Works (PUPR) / LPJK, not OSS — Emerhub handles the application end-to-end.
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Sertifikat Badan Usaha (SBU) classification required from LPJK.
PBG (Building Approval) issued per project by local government.
OSS source text below — Emerhub takes care of each step on your behalf.
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.
KBLI 43120 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.
Sub-activities recorded under this KBLI in the OSS regulatory database. The classification covers any business operating in one or more of these areas.
From the official OSS scope definition for this KBLI class. Each item is a distinct sub-activity that falls under this code.
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.
We confirm KBLI 43120 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.
We 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.
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).
Subclassification Code for Utility Work Implementation: PL006
Documents and capabilities you must demonstrate at registration
Compliance and reporting duties throughout operation
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 |
PB UMKU permits sit on top of the main NIB and Sertifikat Standar — each is issued by a different ministry, and only when a specific operational activity is performed. This KBLI carries 7 candidate permits across 2 regulators; most operations only need a handful. Emerhub maps your operation to the exact set, files them, and tracks renewals.
Ministry of Transportation. Applies to commercial passenger or freight transport — road, sea, air, rail, freight forwarding, port and airport operations. Each vehicle, route, or terminal often needs its own standard certificate; expansion triggers re-certification.
Ministry of Defence. Applies when the operation produces, stores, or distributes weapons, ammunition, military vehicles, or explosives. The Ministry of Defence vets and re-vets the operator across the lifecycle.
We file the OSS application with KBLI 43120 as your primary business activity, complete the risk-based assessment, and collect the NIB (Business Identification Number) for you — typically within hours of submission. You don't need to touch the OSS portal.
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. We prepare the application bundle, liaise with the competent ministry, and chase issuance through to the certificate. Statutory turnaround: 15 business days — real-world timing typically runs longer when site inspections or additional clarifications are requested.
Post-launch we run your monthly tax filings, quarterly LKPM (Investment Activity Reports), annual general meeting (RUPS), and any sector-specific reporting. You get a single point of contact and a monthly compliance digest — no Indonesian-language paperwork on your desk.
Class-level prerequisites that apply to every operator under this KBLI, independent of business scale. These commonly include minimum capital rules for PMA entities and spatial-planning (KKPR) conformance.
A plain-English explanation of this classification and the businesses it covers.
KBLI 43120 (Site Preparation.) is the 5-digit Indonesian Standard Industrial Classification code for penyiapan lahan. It sits within Construction under the subgroup Site Preparation (major group 43) in the official KBLI 2020 taxonomy maintained by Statistics Indonesia (BPS).
Any Indonesian or foreign-owned entity that intends to operate in penyiapan lahan as a primary or secondary business activity must select this code on its NIB (Business Identification Number). The selected code determines the licensing instruments required, the issuing authority, and the ongoing compliance obligations.
Indonesia's OSS Risk-Based Approach uses the KBLI code to determine three things: (1) whether foreign investment is permitted and at what cap, (2) the risk-based licensing instruments required, and (3) the authority that issues each instrument. Choosing the wrong code can delay or invalidate your license.
Indonesia's BPS published the new KBLI 2025 taxonomy in early 2025. OSS, BKPM and the operating ministries have not yet adopted it — KBLI 2020 remains the active standard for business registration. This is what's coming for this specific code.
KBLI 43120 retains the same code number and scope in the new taxonomy. The activity description, hierarchy, and intended use of the code are preserved.
When OSS adopts KBLI 2025, we'll migrate your existing entity to the appropriate successor code as part of ongoing compliance — no action needed on your end now.
Talk to a specialistIndonesia's OSS Risk-Based Approach assigns a separate risk level for each of the four business scales. The licensing instruments required (NIB, Standard Certificate, Operating License) are determined by the risk level. Foreign-owned entities (PT PMA) must register at the Large scale, so the rightmost column applies to most foreign investors.
KBLI 43120 (Site Preparation.) is the 5-digit Indonesian Standard Industrial Classification code for penyiapan lahan. It sits within the Construction category in the official KBLI 2020 taxonomy maintained by Badan Pusat Statistik (BPS).
Yes, KBLI 43120 is open to PMA at the class level, but Pres. Reg. 10/2021 carves out specific sub-activities that are restricted. A foreign investor can operate the unrestricted slices subject to the same BKPM Reg. 5/2025 capital rules.
KBLI 43120's risk levels per business scale: Micro Medium-High, Small Medium-High, Medium Medium-High, Large Medium-High. Foreign-owned entities (PT PMA) must register at the Large scale.
NIB + verified Standard Certificate (Sertifikat Standar Terverifikasi). KBLI 43120 is Medium-High risk at Large scale, so NIB is issued first, but the Standard Certificate becomes effective only after the issuing ministry verifies compliance (typically through a document review or site audit). 7 sector-specific PB UMKU permits also apply depending on the exact activity. See the requirements summary at the top of the page. Plus one basic requirement (KKPR) at the class level.
BKPM Reg. 5/2025 default applies: IDR 2.5 billion paid-up capital at incorporation + IDR 10 billion+ total investment commitment per KBLI registered, realized over time and reported quarterly via LKPM.
PT PMA setup typically takes 4-8 weeks: AHU registration (1-2 weeks), NIB issuance via OSS (immediate to 1 week), bank account opening (2-4 weeks). The licensing cycle for KBLI 43120 specifically takes 15 days at the Large business scale.
Not on the Tax Holiday or Tax Allowance priority lists. KBLI 43120 businesses pay the standard 22% PPh Badan; Super Tax Deduction (300% R&D / 200% vocational training) may still apply for qualifying expenses.
Authority depends on the investor profile. For PMA: Minister/Head of Agency. For domestic SME scale: typically Governor (for Provincial scope) or Regent/Mayor (Regency/City scope). Specific mapping is in §1 of this page.
Beyond the NIB, KBLI 43120 carries 7 PB UMKU permits across 2 sector regulators: Transportation (5), Defence & Security (2). Most operations only need 2-4 of these — the relevant set depends on which specific activities you actually perform; Emerhub maps the right subset before filing.
KBLI 43120 is the only entry in its subgroup 4312. Browse the parent group 431 for related activities.