The Requirements and Procedures to elevate the business Classification (Grade) of Construction Services Business Entity In Indonesia

The Requirements and Procedures to elevate the business Classification (Grade) of Construction Services Business Entity In IndonesiaThere are several requirements in elevating the business classification (Grade) of Construction Services Business Entity as follows:

  1. The addition of work experience for each proposed classification corresponding increase in qualifications;
  2. Enclose the authentic proof of Handover of newsworthy events or Provisional Hand Over (PHO) which obtained within 1 (one) recent year from the application of qualification improvement; and
  3. Enhancement of business qualification has been made by USBU through an assessment of feasibility of classification and qualification.;
  4. Especially for the improvement from Grade 5 into Grade 6 a Business Entity Construction Services also must meet the following requirements:

a)    Had been experienced in conducting of Grade 5 qualification employment referring to sub expertise with the current value of acquisition within recent 10 (ten) year or obtaining the highest package at least Rp5,000,000,000.- (five billion rupiah) which obtained during 10 (ten) recent year;

b)    Net worth more than Rp3,000,000,000.- (three billion rupiah) up to Rp25,000,000,000.- (twenty five billion rupiah) by enclosing the recent annual balance sheet which issued by an entity duly execution on the stamp duty and the financial report which issued by the public accountant office; and

c)    PJT and PJBU with the lowest qualification as an expert and the lowest qualification as an associate expert including PJB with the lowest qualification as an expert and the lowest qualification as a young expert.

5.    Especially for the improvement from Grade 6 to Grade 7 a Business Entity Construction Services shall also meet the following requirements:

a)    Had been experienced in conducting of Grade 6 qualification employment referring to sub expertise with the current value of acquisition in aggregate at least Rp25,000,000,000.- (twenty five billion rupiah) within 10 (ten) recent year or obtaining the highest package at least Rp10,000,000,000.- (ten billion rupiah) which obtained during 10 (ten) recent year;

b)    Net worth more than Rp10,000,000,000.- (ten billion rupiah) by attach the recent annual balance sheet which issued by an entity duly execution on the stamp duty and the financial report which issued by the public accountant office; and

c)    PJT and PJBU and PJB with the lowest qualification as an expert and the lowest qualification as an associate expert.

For the requirement of point 4 and point 5 it occurs due to twice of improvement which is from Grade 5 to Grade 6 and Grade 6 to Grade 7.  It happens because basically Grade changes can only be given to one level above or below of its qualifications. This means if the company wants to improve its business Grade from Grade 5 into Grade 7 thus it must go through a two-stage process, which is:

1.    Alteration of Grade 5 to Grade 6;

2.    Then change Grade 6 to Grade 7.

As information, the Grade Improvement of a Business Entity Construction Services must obey these terms below:
a)    from qualification of Grade 2 becoming qualification of Grade 3;
b)    from qualification of Grade 3 becoming qualification of Grade 4;
c)    from qualification of Grade 4 becoming qualification of Grade 5;
d)    from qualification of Grade 5 becoming qualification of Grade 6; and
e)    from qualification of Grade 6 becoming qualification of Grade 7.

Procedure:

The procedure for improving the Grade of Enterprises Construction services, are as follows:

1.    Submitting the application of SBU issuance and the registration list to National LPJK or Regional LPJK in accordance with their authorization, filling the list of petition of alteration of SBU (attachment 16) completed by Attachment which contains the data of Business Entity which comprises of:

  • the Application of Certification (F1/PL/A01);
  • the Form of Covering Letter of Business Entity (F1/PL/A02);
  • Field/Subfields Application Form (F1/PL/A03);
  • Statement Letter of Business Entity (F1/PL/A04);
  • Filling out Form of Administration Data (F1/PL/A05);
  • Filling out Form of Supervisor Data (F1/PL/A06);
  • Filling out Form of Person in Charge (F1/ PL/A07);
  • Form of Statement Letter Non- Public Employee (F1/PL/A08);
  • Form of Financial Record (F1/PL/B01);
  • Form of Sheet Grade 5 tipe 2 (Grade 5 new) (F1/PL/B04);
  • Form of Sheet Grade 2, Grade 3 and Gread 4 (F1/PL/B05);
  • Filling out Form of Personnel Data Form (PJT/PJB) (F1/PL/C01);
  • Filling out Form of Personnel Data Form with Engineering background (F1/PL/C02);
  • Filling out Form of Personnel Data Form with Non – Engineering background (F1/PL/C03);
  • Statement Letter PJT/PJB/(F1/PL/C04);
  • Curriculum Vitae Form (F1/PL/C05);
  • Filling out Form of Business Entity Experienced (F1/PL/D01);
  • Filling out Form of Tools Record (F1/PL/E01).

2.    Application for grade alteration business entity of member association through LPJK National or LPJK Province in according to his authority through the association with work plot as follows:

a)    the Association is compulsory to assure the truth and the validation all of documents in the minutes of the initial verification and validation Results form which executed by the General Chairman/ the Association Chairman as an attachment 7 and upload a business entity database to SIKI LPJK Nasional;

b)    LPJK through the Executive Entity of LPJK received the application of registration SBU document from association, examining the completeness of document, and checking the business entity database from SIKI LPJK National, then providing the application receipt of the registration petition of SBU;

c)    LPJK through the LPJK Executive Entity distributes the application registration of SBU application to USBU to be conducted the assessment of classification feasibility  and qualifying business entity;

d)    In case of SBU registration application document derived from association which has not been power to conduct initially validation and verification, therefore the Executive of LPJK checking the completeness of document, filling the completeness document form which available upon SIKI LPJK National, then providing the application receipt of registration petition of SBU, and upload database conducted by USBU;

e)    Assessor at USBU conducting a document checking, examining the validity of the document, assessment of the business entity capability based on business entity registration application document based on SBU and business entity database, then make recommendations on the feasibility of the classification and qualification;

f)    The Chief Executive issued minutes of classification feasibility and application for the registration qualification of SBU henceforward will be submitted to LPJK;

g)    LPJK conducting Board Meeting to stipulate qualification and classification duly enshrined in the Book of Registration;

h)    SBU registration is conducted by uploading the data of SBU applicant which available in the SIKI LPJK main data to be printed upon the SBU blank;

i)    LPJK prints SBU and to be executed by the in charge official;

j)    The signed of General Chairman / Association Head and association mark are listed on the SBU back page.

Note: the implementation of the certification to petition change qualification business specified in such a way by institutions based on the respective authorities as follows:

  1. Business Entity Certification Unit at The National Level (National USBU) in submitting by one of qualifications with the Grade 7 qualification; and
  2. Business Entity Certification Unit at The Province Level (USBU Province) in submitting qualification Grade 2 to Grade 6
  3. In case of USBU Province has not been established the certification implementation is conducted by USBU National

Despitefully, alteration/ enhancement Grade a business entity has tolerance in case if the adjustment/ improvement Grade in the next level can be conducted by the terms as follows:

1.    Enhancement Grade 1 to be Grade 2 can be conducted as soon as possible after 6 (six) month once SBU issued, and

2.    The next Enhancement in classification for Grade 2 to be Grade 3, Grade 3 into Grade 4, and Grade 4 to Grade 5, can be done 12 (twelve) month subsequently;

3.    Enhancement in Grade 6 to be Grade 7, can be done 18 (eighteen) month subsequently.

About the Author

Seorang Lawyer dan Auditor yang menguasai ilmu khusus seperti Tindak Pidana Korupsi, Penyelesaian Sengketa Pemilihan Kepala Daerah, Pengadaan Barang dan Jasa Pemerintah dan Hibah Daerah /Bantuan Sosial

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