Local Company ( PT )

Establishment of Local Companies (PT) in Indonesia must follow the Law no. 40 of 2007 concerning “Limited Liability Company”.


Establishing a local company is the easiest thing for you. You just have to get a local person who is capable and trusted to carry out construction work, preferably experienced.


You need to know, that Construction Services Business Licenses for local companies must go through several qualification steps. The first time the company is awarded Middle Qualification 1 (M1), with a project value that you can run is a maximum of IDR 100 billion. Then the next step is Middle Qualification 2 (M2), and then the Big Qualification 1 (B1).


Things you must prepare for the Establishment of a Local Company (PT. Lokal):


  1. Prepare at least 2 (two) Indonesian citizens as company shareholders.
  2. Prepare the name of the company according to the business field that you will run. The name of the company is a maximum of 3 (three) syllables in Indonesian language.
  3. Prepare the amount of capital that must be deposited into the company’s cash with a minimum of above Rp. 1 billion.
  4. Prepare a business place as a place to operate your business. Business premises must be in the central business district, office buildings and not allowed in residential areas.
  5. Determine the Classification and Sub Classification of Construction that you will run.
  6. Please select the sub classification code according to your work experience:
    Construction Contractor
    Construction Consultant
  7. Prepare experts needed according to business classification. For Intermediate Qualifications, the number of sub-classifications allowed is a maximum of 4 (four) sub-classification codes.


We help you to process the establishment of a local business entity and its Construction Services Business License with easier and faster.