REGULATION OF THE MINISTER OF PUBLIC WORKS AND PUBLIC HOUSING OF THE REPUBLIC OF INDONESIA NUMBER 17/PRT/M/2019 OF 2019

July 28, 2020 | Regulatory Updates


Construction Services Actors have demanded for the Minister of Public Works and Public Housing of the Republic of Indonesia (“Minister”) to review the current regulation regarding foreign construction services which, according to them, is appraised not in accordance with the spirit of the Government of Republic of Indonesia in their attempt to lure in foreign investments into Indonesia, as well as being out of alignment with the regulation of Capital Investment Coordinating Board with regard to the licensing of businesses in the construction services sector; Following which, the Minister issued the Regulation of the Minister of Public Works and Public Housing of the Republic of Indonesia Number 17/PRT/M/2019 of 2019 regarding the Repeal of Regulation of the Minister of Public Works and Public Housing of the Republic of Indonesia Number 09/PRT/M/2019 of 2019 regarding Licensing Service Guidelines for Foreign Construction Service Business Entities (“Regulation No. 17/2019”) in order to show their support in the simplification of licensing businesses, the discretion of investment requirements, and to ease the business undertakings.

With the effectiveness of the Regulation No. 17/2019, the Regulation of the Minister of Public Works and Public Housing of the Republic of Indonesia Number 09/PRT/M/2019 of 2019 regarding Licensing Service Guidelines for Foreign Construction Service Business Entities (“Regulation No. 09/2019”) is repealed and shall be declared as no longer valid.

By the repealing of Regulation No. 09/2019, in order to fill the legal vacuum until the Omnibus Law is determined, the Minister issued Circular Letter of the Minister of Public Works and Public Housing of the Republic of Indonesia Number 22/SE/M/2019 of 2019 regarding Service Guidelines for Foreign Construction Service Business Entities (“Circular Letter No. 22/2019”), with the intended purpose to support the investment climate, de-bureaucratization, and to construct a public service that is integrated, effective, and efficient.

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