Semarang is emerging as a top business location in Indonesia. However, to run a business here successfully, compliance with local rules, including a building permit, is essential. That means obtaining the necessary licenses and permits before commencing operations.
This article will guide you on how to obtain a business license in Semarang, including environmental permits (RKL-RPL), building permits, and industry-specific licenses. These documents are essential for running your business legally and avoiding fines or delays.
Why build your business in Semarang
As the capital of Central Java, Semarang offers strategic advantages for businesses looking to enter or expand in Indonesia.
Strategic Location and Port Access
Semarang is located on the northern coast of Java, offering direct access to Tanjung Emas Port. This makes it ideal for import-export businesses and logistics operations.
Lower Operating Costs
Compared to Jakarta and Bali, Semarang has lower costs for rent, labor, and utilities. It helps businesses increase profitability and manage budgets more efficiently.
Growing Industrial Zones
The city has several well-developed industrial areas that support manufacturing, warehousing, and distribution. These zones are equipped with key infrastructure and services.
Supportive Local Government
The local government actively promotes investment by simplifying permit processes and offering incentives. This makes it easier to establish and run a business legally.
Skilled Workforce Availability
Semarang’s universities and training centers provide a pool of skilled workers across various industries, including manufacturing, IT, and services.
To leverage these opportunities in Semarang, it’s essential to obtain the proper environmental and building permits to ensure compliance with local regulations and facilitate smooth operations within the city’s business environment.
Read more: How to establish a medical device manufacturing company in Semarang
Environmental Licensing: AMDAL & RKL-RPL
An environmental license is a legal requirement for businesses in Semarang to assess potential environmental impacts in the future. This is governed by Law No. 32 of 2009 on Environmental Protection and Management.
Types of environmental permits in Semarang include:
AMDAL (Environmental Impact Assessment)
This permit is required for businesses that are likely to have a significant environmental impact. The AMDAL includes detailed studies and approval from authorities before projects can proceed.
RKL-RPL (Environmental Management Effort & Environmental Monitoring Effort)
RKL-RPL are mandatory environmental documents for larger-scale business activities involving land use, resource extraction, and other operations that could impact the environment. These reports outline how your business will manage and monitor its environmental impact.
For smaller businesses with minimal impact, it may only require UKL-UPL (Environmental Management and Monitoring Efforts).
Building Permit in Semarang: PBG & SLF
Indonesia previously used the IMB (Building Permit Indonesia) system to regulate construction. However, starting in 2021, the government replaced IMB with two updated permits: PBG (Persetujuan Bangunan Gedung) and SLF (Sertifikat Laik Fungsi).
This change separates the approval process into clearer stages to ensure all buildings are both legally compliant and safe for use.
PBG (Building Approval Permit)
PBG is required before starting any construction, renovation, or change of use for commercial or industrial properties in Semarang. Property owners must obtain this permit to ensure their plans follow technical and legal building standards.
Once issued, the PBG remains valid as long as the building maintains its approved design, structure, and systems. It verifies that the construction plan meets current safety codes and includes:
- Compliance with legal safety regulations.
- Documentation of technical specifications, zoning, and environmental factors.
- Assurance of safety, health, and comfort for future occupants.
SLF (Certificate of Building Functionality)
SLF is issued after construction is completed. It confirms that the building is safe, meets all technical standards, and is ready for use. SLF works alongside the PBG to ensure that the approved plans are constructed.
SLF is valid for 20 years for residential properties and 5 years for commercial or other types of buildings. Once it expires, it must be renewed—otherwise, the building cannot be legally used.
Both PBG and SLF are required before you can legally open or use your business premises in Semarang.
Read more: How to obtain an Industrial Business License (IUI) in Indonesia
Sector-specific Licensing (SVLK)
SVLK (Timber Legality Assurance System) is a mandatory license for businesses dealing with timber and wood products in Indonesia. It ensures that the timber used comes from legal and sustainable sources, avoiding illegal logging practices.
This license is essential if you plan to export products, as countries such as the EU, Japan, and Australia require proof of legal timber sourcing.
You need SVLK if your business involves:
- Logging or timber harvesting
- Wood manufacturing (e.g., furniture, plywood)
- Exporting wood or timber-based products
To get SVLK, your business must pass an audit by an accredited certification body. They will review your sourcing documents, business practices, and environmental compliance. Once approved, regular renewals and audits are required to maintain the certification.
Stay compliant in Semarang with the proper license.
Starting a business in Semarang requires obtaining the proper licenses to ensure smooth and legal operations. From environmental to industry-specific licenses and building permits, each plays a key role.
Need assistance? InCorp Indonesia (An Ascentium Company) provides end-to-end support for securing your business license in Semarang. Our services cover:
- AMDAL & RKL-RPL
- PBG (Building Approval)
- SLF (Building Functionality Certificate)
- SVLK (Timber Legality Verification)
Ready to start your business in Semarang? Contact us today—we’ll handle the paperwork so you can focus on growing your business.
Get in touch with us.
What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
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