The government has indicated that it will soon engage a 2010-2014 National Legislation Priority, the overhaul of Law No. 18 of 1999 on Construction Services; the ‘umbrella regulation’ governing the national construction sector’s activities. It is almost guaranteed to require subsequent implementing regulations, and stakeholders in the construction sector will surely hope this ‘homework’ legislation is attended to speedily, and in full.
Both the government and House of Representatives (‘DPR’) agree that the 1999 Law has put a ceiling on development in the domestic construction sector - that much was conveyed to Investor Daily (30/3) by Smaryanto Widayatin, the Head of the Construction Development and Human Resources Agency for the State Ministry of Public Works, who posited that foreign construction companies are threatening to overrun the domestic industry.
Although he did not provide details, Mr. Widayatin suggested that the overhaul to the 1999 Law will contain numerous provisions that are favorable to the domestic construction industry, including those related to research and development, import preferences for construction materials and heavy machinery, and financing.
The revised 1999 Law is currently at the DPR’s Commission V - a subsection of the parliament that deals with construction matters, among other things - but has not yet been discussed to any real extent. According to Yosep Umarhadi, the Commission’s Vice-Chairperson, the revision will be discussed further when the members finish formulating the revision to Law No. 4 of 1992 on Housing and Settlement (Tempo Interaktif, 29/3).
This Indonesian Legal Brief is based on research conducted by hukumonline team.
The government has indicated that it will soon engage a 2010-2014 National Legislation Priority, the overhaul of Law No. 18 of 1999 on Construction Services; the ‘umbrella regulation’ governing the national construction sector’s activities. It is almost guaranteed to require subsequent implementing regulations, and stakeholders in the construction sector will surely hope this ‘homework’ legislation is attended to speedily, and in full.
Both the government and House of Representatives (‘DPR’) agree that the 1999 Law has put a ceiling on development in the domestic construction sector - that much was conveyed to Investor Daily (30/3) by Smaryanto Widayatin, the Head of the Construction Development and Human Resources Agency for the State Ministry of Public Works, who posited that foreign construction companies are threatening to overrun the domestic industry.
Although he did not provide details, Mr. Widayatin suggested that the overhaul to the 1999 Law will contain numerous provisions that are favorable to the domestic construction industry, including those related to research and development, import preferences for construction materials and heavy machinery, and financing.
The revised 1999 Law is currently at the DPR’s Commission V - a subsection of the parliament that deals with construction matters, among other things - but has not yet been discussed to any real extent. According to Yosep Umarhadi, the Commission’s Vice-Chairperson, the revision will be discussed further when the members finish formulating the revision to Law No. 4 of 1992 on Housing and Settlement (Tempo Interaktif, 29/3).
This Indonesian Legal Brief is based on research conducted by hukumonline team.
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