TAXES
LAW
5
New Regulation on Construction Services
LUBIS, SANTOSA & MARAMIS Law Firm
Indonesia has recently issued Law Number 2 of 2017 on
Construction Services (New Construction Law). The New
Construction Law revokes Law Number 18 of 1999 on
Construction Services which had been implemented for almost
18 years. The main purposes of the New Construction Law are to
boost the development of domestic construction technology and
prioritizing domestic materials in construction purposes. As the
implementation of those purposes, the New Constriction Law
adds a new chapter regarding responsibilities and authorities of
the Central Government. To date, the Central Government has
the authority to publish domestic construction technology to all
stakeholders (whether national or international) in the framework
of boosting domestic construction potential.
The New Construction Law has changed names of types of
construction services to become (i) construction consultation
business, (ii) construction work business, (iii) and integrated
construction work business, whereas it is further divided to
several categories. The amendment to the types of construction
services is conducted by taking into account to the evolution
and development of international construction services. The
detailed regulation on the types of construction services will be
regulated in implementing regulation. However, the Government
of Indonesia has not issued implementing regulation of the
LUBIS, SANTOSA & MARAMIS Law Firm, founded in 1986, focuses
nearly every major legal concentration including intellectual property
rights, commercial, corporate, investment, banking, finance, capital
market & securities, trade, manufacturing, distribution, insurance,
telecommunications, energy, natural resources, environment,
maritime, aviation, tourism, real estate, construction, infrastructure,
labor relations, government affairs, taxation, sports & entertainment,
arbitration, and litigation. Our practice is dedicated to the provision
of prompt, effective and pragmatic legal, business planning risk
management advisory services to clients seeking insightful solutions
to sophisticated business development, operations and dispute
resolutions concerns, We are committed to providing responsive
attorneys, efficiently managed cases and transactions, and alternative
billing options that succinctly meet the needs of our clients.
Bernard Moller, S.H
Associate
+62 877 740 35661
New Construction Law, so that the previous implementing
regulations are still valid. Government of Indonesia will issue the
implementing regulation no later than 2 years since the issuance
of the New Construction Law.
With regards to the obligation and licenses of construction
companies, the New Constriction Law still obliges foreign
companies undertaking construction service in Indonesia to
establish a representative office and/or form a joint venture
scheme with a domestic construction company. In addition,
companies engaging on construction services are still required to
obtain construction business licenses and corporate certificate.
In conclusion, the New Constriction Law contains more detail
and comprehensive provisions compared to the previous Law.
Infrastructure
LUBIS, SANTOSA & MARAMIS Law Firm
Equity Tower, 12
th
Floor
Sudirman Central Business District (SCBD)
Jl. Jend. Sudirman Kav. 52-53
Jakarta - 12190 - Indonesia
Phone : +62 21 2903 5900
Fax : +62 21 2903 5909
Email
:
Website :
