Procurement of Goods / Services -Participation of Foreign Companies

The mandate contained in Law No. 7 of 1994 on the Ratification of the Agreement on the Establishment of the World Trade Organization and Law No. 18 of 1999 on Construction permits the Minister of Public Works (MPW) to define and determine the terms and conditions for participation of foreign companies in the procurement of goods/services in Indonesia.

Most of these conditions have already been determined however the MPW has issued a Circular, No. 13/SE/M/2006, to ensure that there is compliance with the prevailing laws and regulations in this area. The Circular deals with matters related to licensing, sectors, joint operations and joint ventures, and procurement values.