Updates on Construction Services

The Government has issued Government Regulation (“PP”) No. 79 of 2015 (“Second Amendment”), which amends PP No. 29 of 2000 on Construction Services (“2000 Regulation”). [1] In essence, the Second Amendment aims to improve economic growth as a whole by involving state-owned enterprises in the construction of infrastructure throughout Indonesia. [2] The Second Amendment is of relevance to state-owned enterprises, either as project owners or providers of construction services.Construction Service ProvidersThe construction service industry involves the provision and implementation of services and consultancies for construction projects. [3] Parties able to offer such construction services are: Planners (perencana konstruksi), Contractors (pelaksana konstruksi), and Supervisors (pengawas konstruksi) — collectively referred to as Providers. [4] Appointment of ProvidersThere are four methods of appointing Providers, as follows: [5]