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 Providers
 
The 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 Providers
 
There are four methods of appointing Providers, as follows:[5]