Makarim & Taira S.
  December 9, 2019 - Indonesia

The Ministry of Public Works & Housing Revokes The Regulation on Guidelines on Licensing Services for Foreign Construction Business Entities
  by Stephen Sim, Annisa Tharian

As part of President Jokowi Widodo’s plan to issue “investment friendly” regulations, the Ministry of Public Works and Housing (“MPW”) revoked MPW Regulation No. 09/PRT/M/2019 on Guidelines on Licensing Services for Foreign Construction Business Entities (“MPW Reg 9/2019”) on 18 November 2019 under MPW Regulation 17/PRT/M/2019 (“MPW Reg 17/2019”).

In order to fill the vacuum created by the revocation of MPW Reg 9/2019, the MPW has issued Circular Letter No. 22/SE/M/2019 on Guidelines on Licensing the Businesses of Foreign Construction Business Entities (“Circular Letter No. 22/2019”). In general, Circular Letter No. 22/2019 provides the procedures for applying for, extending and revoking the Licenses of Foreign Construction Representative Offices (“BUJKA-RO”) (Izin Perwakilan Badan Usaha Jasa Konstruksi Asing, “BUJKA-RO License”) and Business Licenses of Foreign Investment Construction Companies (“PMA Company”) (Izin Usaha Jasa Konstruksi, “PMA License”).

Although, most of the provisions related to the procedures for applying for a BUJKA-RO License and PMA License remain the same, Circular Letter No. 22/2019 simplifies the commitment for the BUJKA-RO License and PMA License, which are outlined as below:

  1. Commitment for BUJKA-RO License
  2. Commitment for PMA License
  3. Unaddressed Issues under Circular Letter No. 22/2019

 

Written by Heru Mardijarto, Stephen Sim, and Annisa Tharian.

Read about details of the provisions by clicking this link.




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