The Construction Services Development Board (Lembaga Pengembangan Jasa Konstruksi – “LPJK”) has issued Regulation No. 6 of 2014 (“Amendment”) to amend LPJK Regulation No. 10 of 2013 on Construction Services Business Registration (“Regulation”).[1]
The Regulation sets out mandatory registration requirements for Contractors (pelaksana konstruksi),[2] covering the following matters:
a.
Classification[3] of and qualifications[4] for construction services;
b.
Requirements on net assets and work experience;
c.
Respective institutions for conducting certifications, registrations, as well as verifications and validations;
d.
Registration types, requirements and mechanisms/procedures;
e.
Non-registration, business registration number, and registration costs;
The Amendment aims to improve the regulatory provisions on the above matters and to improve LPJK’s registration services.[5]
The Amendment is relevant to contractors, both corporate and individual.[6]
Amendment Scope
In general, the Amendment changes 15 articles of the Regulation, and five appendices to the Regulation. The amended articles are Articles 6, 11, 13, 18, 20, 21, 25, 26, 31, 32, 35, 38, 39, 57, and 72. Meanwhile, the amended appendices are Appendix 2, 2A, 6-6, 8-9, and 24.
Due to the broad ambit of the Amendment, this ILB will only cover amendments to the following provisions:
1.
Requirements on net assets (Article 11)
2.
Registration processes (Articles 18, 20, and 21)
3.
Re-registration (Article 26)
4.
Certification and registration costs (Article 57)
Requirements on Net Assets
The Amendment changes the requirements on net assets for all contractor sub-qualifications.[7] The changes are as set out in the following table:
The Construction Services Development Board (Lembaga Pengembangan Jasa Konstruksi – “LPJK”) has issued Regulation No. 6 of 2014 (“Amendment”) to amend LPJK Regulation No. 10 of 2013 on Construction Services Business Registration (“Regulation”).[1]
The Regulation sets out mandatory registration requirements for Contractors (pelaksana konstruksi),[2] covering the following matters:
a.
Classification[3] of and qualifications[4] for construction services;
b.
Requirements on net assets and work experience;
c.
Respective institutions for conducting certifications, registrations, as well as verifications and validations;
d.
Registration types, requirements and mechanisms/procedures;
e.
Non-registration, business registration number, and registration costs;
The Amendment aims to improve the regulatory provisions on the above matters and to improve LPJK’s registration services.[5]
The Amendment is relevant to contractors, both corporate and individual.[6]
Amendment Scope
In general, the Amendment changes 15 articles of the Regulation, and five appendices to the Regulation. The amended articles are Articles 6, 11, 13, 18, 20, 21, 25, 26, 31, 32, 35, 38, 39, 57, and 72. Meanwhile, the amended appendices are Appendix 2, 2A, 6-6, 8-9, and 24.
Due to the broad ambit of the Amendment, this ILB will only cover amendments to the following provisions:
1.
Requirements on net assets (Article 11)
2.
Registration processes (Articles 18, 20, and 21)
3.
Re-registration (Article 26)
4.
Certification and registration costs (Article 57)
Requirements on Net Assets
The Amendment changes the requirements on net assets for all contractor sub-qualifications.[7] The changes are as set out in the following table:
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