According to Law Number 2 of 2017 concerning Construction Services, the Construction Services sector is a community activity that realizes buildings that function as support or infrastructure for socio-economic activities to support the realization of national development goals.
As the spearhead and main pillar in the provision and sustainable development of infrastructure in Indonesia, construction services have a big share and have a broad impact on the economic activities of the community, namely the opening of jobs and the smooth production and distribution of goods and services to support the country's economic growth starting from the preparation stage, the implementation of construction work as well as the operation and maintenance of infrastructure in achieving national development goals. This is considering construction services as an industry that processes raw materials and materials that produce construction products such as buildings or buildings, roads and bridges, railways, airports, ports, dams, factories, oil and gas facilities, power plants, irrigation networks, clean water and waste treatment, and others as property or infrastructure.
Further provisions regarding Construction Services can be seen in Article 11 through Article 17 while Article 19 through Article 25 of Law Number 2 Year 2017 concerning Construction Services regulates the Construction Services Business.
Construction Services Business License (IUJK) is a business license issued by the Local Government to companies to be able to carry out construction services business activities either as a construction planner (consultant), construction executor (contractor) or as a supervisor and construction planner (consultant) in various fields such as civil buildings, mechanical and electrical installations, other implementing services etc. Construction Business License as a letter for companies that carry out construction activities both within the government, BUMN and Non-Government.
In connection with the Construction Services Business first required licensing, listed in Article 26 Paragraph (2) "Every Construction Services business entity as referred to in Article 19 that will provide Construction Services services must have a Business License."
Every company that wants to carry out construction services business activities must have a standard business license and business license to support business activities (PB-UMKU) in accordance with Government Regulation Number 5 of 2021 concerning the Implementation of risk-based business licensing.
Construction services business licenses are given to companies or construction services business entities to start and run a business consisting of:
1. Business Identification Number
2. Construction SKK
3. Construction SBU
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