The importance of SBU for construction companies in Indonesia.

Business Entity CertificationOr the SBU is legal and technical evidence that a construction services company has met national competency standards. This certificate not only guarantees operational feasibility, but also becomes an absolute prerequisite for companies to participate in large-scale projects, whether by the government or the private sector.

SBU indicates that the company has certified professionals, a compliant management system, and verified finances. Thus, the existence of SBU serves as a benchmark of professionalism and credibility in the increasingly competitive Indonesian construction industry.

Legal Basis and Main Function of SBU

SBU is regulated inLaw No. 2 of 2017 on Construction Servicesas well asRegulation of the Minister of Public Works and Public Housing No. 8 of 2022. This regulation emphasizes that the SBU is issued byCertification Body for Business Entitieswhich has been accredited byInstitute for Development of Construction Services.

Its main function is to ensure that construction service companies have adequate administrative, technical, and financial capabilities. Through this certification process, the government guarantees that every registered business entity is able to carry out projects safely, efficiently, and in accordance with quality standards.

The Role of Certification of Business Entities in National Standardization

Business Entity Certification plays an important role in maintaining the quality of construction work. LSBU assesses competence based on track records, project experience, and the expert personnel it possesses. With a strict classification and qualification system, SBU ensures that only eligible companies can carry out national strategic projects.

Operational Legality Through LPJK and PUPR

The certification process involves verification by LPJK and supervision by the Ministry of Public Works and Public Housing. This confirms that the legality of SBU has a strong legal and administrative basis. Without this document, the operating license and the tender cannot be issued through the OSS-RBA system.

SBU as an absolute prerequisite for participating in the tender.

One of the main reasons for the importance of the SBU is its obligations in the process.Tenders for government and private sector projects.A company without an SBU is not allowed to participate in the procurement process because it is deemed not to have official qualifications.

Classification of Business Sectors in Tender

SBU encompasses various classifications such as building structures, roads, bridges, mechanical, electrical, and other fields. Each classification has a subfield and a certain level of qualification—small, medium, or large—that determines the value of projects that can be undertaken.

Benefits of SBU for the Project Procurement Process

By having an SBU, a company is not only legally recognized, but also gains greater trust from employers. This document serves as a guarantee that the contractor or consultant has met all professional aspects, ranging from certified professionals to a quality management system that conforms to national standards.

Ensuring the professionalism and credibility of the company.

SBU is a symbol that a business entity has been tested for quality and competence. In the construction services sector, a company's reputation is often measured by the SBU status it holds.

Trust of Clients and Work Partners

A company that has a Business Entity Certification is considered more credible because it is able to demonstrate technical expertise and financial capacity. This adds value to winning tenders and expanding strategic cooperation with partners both domestically and internationally.

Business Entity Certification and Enhancement of Competitiveness

SBU also serves as a means to enhance national competitiveness. With this certificate, Indonesian construction companies can more easily compete in international markets that require equivalent competency standards.

Classification and Valuation of Projects Based on SBU

In the SBU there are classifications and qualifications that determine the limit on the value of projects that can be undertaken.

Company Qualification Category

Company withsmall qualificationUsually able to handle projects up to Rp10 billion.Intermediate qualificationscan undertake projects up to Rp100 billion, whereasbig qualificationhas permission to undertake a project valued at more than Rp100 billion.

The Role of LPJK in Evaluation and Development

LPJK plays an active role in the guidance and evaluation of certified companies. Any changes in capacity, expert personnel, or the company's finances may affect the SBU status and require periodic updates.

Legality and Continuous Guidance in OSS-RBA

SBU is not merely an administrative document, but also part of a risk-based modern licensing ecosystem (OSS-RBA).

Integration of SBU with the OSS-RBA System

In OSS-RBA, the SBU becomes a mandatory document to extend.Construction Services Business License (IUJK)Without an SBU renewal, the system will automatically reject the license renewal, so the company will be deemed not in compliance with the law.

Integrated Compliance and Oversight Audit

LPJK, together with the Ministry of Public Works and Public Housing (PUPR), conducts periodic audits to ensure the validity and sustainability of the SBU. This audit includes on-site verification, expert validation, and evaluation of the company's finances.

Risk to a company without an SBU.

Construction companies without an SBU not only miss the opportunity to participate in tenders, but are also at risk of being subjected toadministrative sanctionsIn some cases, a business license can be revoked and the company is placed on LPJK's blacklist.

Legal consequences and reputation

In addition to administrative sanctions, the company's reputation can also suffer. The client will hesitate to entrust a major project to a business entity that lacks proof of legality and valid technical competence.

Economic Losses and Business Opportunities

Without a Business Entity Certification, companies cannot access national strategic projects, including infrastructure development, housing, and public transportation. This could potentially lead to the loss of high-value economic opportunities.

Conclusion and Call for Collaboration

Business Entity Certification is the foundation of legality and credibility for every construction services company in Indonesia. By having an SBU, the company not only complies with the law but is also more prepared to compete in national strategic projects.

Inseminationthrough the divisionConsulting & LicensingReady to assist your company with the issuance and renewal process.Business Entity CertificationProfessionally and integrated with the OSS-RBA system.
Contact the teamInseminationathttps://insimen.com/services/for official consultation, so that your company can immediately launch the permitSBUand gain a competitive advantage in the national construction industry.