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:
- Commitment for BUJKA-RO License
- Commitment for PMA License
- 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.