Starting a New Business? Here's Easy Way To Make Business Place Permit

Admin BFI
21 September 2022
Starting a New Business? Here's Easy Way To Make Business Place Permit

Planning to open a business in one place or area? Make sure you already have a Place of Business Permit so that the business you run does not experience unwanted things in the future.

What is a Business Place Permit, how do you manage it, and how is it different from a Trade Business Permit? In full, the BFI Finance TEAM will discuss this article. Let's have a look!


Definition of Business Place Permit

Business Place Permit or abbreviated as SITU is legality in the form of a license to establish a place of business in an area. This SITU is issued by the local legal entity where the business is located.

In addition to functioning as a place of business legality, SITU also has another function, namely as valid evidence if a business established in an area is in accordance with the provisions of the spatial layout of that location. SITU also serves as proof of the existence of a permit from the community for the establishment of a business.

Finally, the existence of a SITU can be a prerequisite for investment by potential investors. So, later investors who are interested in investing in your business can be happier and give full confidence.

SITU Making Requirements

To make a Business Place Permit, make sure you complete the following requirements.

1. Form for Making Business Place Permit (SITU)

2. Application Letter Completed With Stamp Rp6.000

3. Photocopy of the ID card of the business owner or company in charge which has been legalized by the local sub-district head

4. Photo of the Business Owner or Person in Charge, Size 3 X 4 cm 3 pieces

5. Photocopy of Building Permit (IMB)

6. Interference Permit or Hinder Ordonantie (HO) and Photocopy of Payment of Retribution

7. Recommendation letter from the village head or sub-district head in the area where your business is located

8. Proof of Land Ownership in the form of a Land Certificate or Building Lease Letter (If Leasing / Contract)

9. Deed of Business Establishment

10. Regional Fiscal Certificate from the Regional Revenue Service (DISPENDA)

11. Minutes of Business Location Inspection

12. Your Business Location Plan or Domicile Certificate

13. Photocopy of Advertising Tax and Photocopy of Land Building Tax Payment Certificate (PBB)

SITU's Fee

For the cost of making a Business Place Permit (SITU), the fee charged is IDR 0 or free. This is in accordance with the provisions of Regional Regulation No. 5 of 2011 concerning Licensing Retribution in the Licensing Section which explains that the cost of making a SITU is FREE.

However, you still need to spend some funds for the cost of making a Nuisance Permit (HO). The amount to be paid is calculated by the following formula.

Area of Business Place x Per meter Tariff x Location of Location and Charges in the Economic Zone Section.

Surat Izin Tempat Usaha

Image Source: Unsplash/Zhu Hongzhi

Easy Ways to Make a Business License (SITU)

After you have completed all the requirements, the next step is to make a Business Place Permit (SITU) in this easy way.

1. Prepare all the required documents

2. Fill in the SITU Registration Form according to your company or business data

3. Visit the local licensing office, namely the Office of Investment or One Stop Service (PTSP) at the city or district level

4. Re-register for SITU

5. Furthermore, the documents you provide will be processed by the officer. If you pass, the existing form will be published as SITU

Keep in mind, to make SITU usually takes 5 days. However, the implementation itself depends on the respective regional policies. You can directly ask the officer in charge of this.

How to Check SITU Online

Have you applied for the cancellation of the Business Place Permit and are curious to check how far the status of its manufacture is? Don't worry, now you can see your progress online. Whether it's from your desktop or your phone. Follow these steps.

1. Visit the website address of the government of your city or domicile

Some local government sites that you can try to check include:

  • Jakarta: 

  • Yogyakarta: 

  • Bandung: 

  • Semarang: 

  • Sidoarjo: 

  • Surabaya: 

  • Medan: 

  • Tangerang:

2. Create a new account and complete the information regarding your personal data

3. Next select New Application”

4. Fill in the 'Registration Form' column and upload the files to apply for SITU

5. To check the status of the management of the permit, you can select "My Permission". Later on your screen will be displayed whether the existing process gets approval, delay, or rejection

Example of a Business Place Permit Format

Generally, each region has its own policy regarding the format of the Business Place Permit (SITU). In other words, the existing licensing format is not patented. Even so, you can use the following sample letter format as a reference as an illustration of the SITU form that you will later have.

Surat Izin Tempat Usaha

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Validity Period of Business Place Permit (SITU)

Regarding the validity period, the place of the business permit has a maximum validity period of 3 years. After the validity period expires, the business owner is obliged to extend the SITU and will obtain the same validity period as long as the object and business subject does not change. The extended duration of SITU management takes a maximum of 5 days from the day of submission.

How and Terms and Conditions to Extend SITU

To extend the SITU, you can follow the procedure for extending your place of the business license below.

Conditions for Extending SITU

  • Copy of Old Business Place Permit (SITU)

  • Photocopy of the latest Building Permit (IMB)

  • Letter of application for an extension that has been signed on stamp duty

  • Photocopy of the deed of establishment of the company

  • Photocopy of SPPT and Temporary Receipt (STTS) for the latest PBB payment

  • Certificate of business domicile obtained from the district

How to Extend SITE

Basically, each regional agency has a different SITU format. In other words, SITU does not have 1 patent or uniform format. However, the place of the business permit has a more or less appearance like the one below.

Difference between SITU and SIUP

Some people often think that SITU and SIUP are the same things. In fact, both have different functions and meanings even though they are both important documents that need to be owned when setting up a business. Well, to make it easier for you to understand the difference between the two, let's look at the points below.

1. Legal Entity Issuing Licensing

SITU is issued by the Investment Office or One Stop Integrated Service (PTSP) at the domicile of the place of business establishment. While the SIUP is issued by the local City or Regency Department of Industry and Trade.

2. Document Terms of Manufacture

The documents needed for the requirements for making SITU are fairly easy, as mentioned above. Meanwhile, SIUP requires more files to take care of it. These include a photocopy of the company's lease or contract, NPWP, up to the company's initial balance sheet. Not only that, to get a SIUP you also have to make a SITU first.

3. Function

SITU or Business Place Permit serves as a permit to obtain a place of business in accordance with the space capacity required by the business actor or company.

Meanwhile, SIUP or Trading Business License serves as a license to establish and carry out business activities in the field of trade or services in Indonesia.

Sobat BFI, that's the explanation regarding the Business Place Permit (SITU). Make sure to always comply with the existing legal rules by making the necessary legalities so that the business you run runs smoothly and does not face difficulties in the future.

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