- In order to accommodate the mandatory utilization of domestic products by toll-road business entities (Badan Usaha Jalan Tol – "BUJT") during the construction and management of toll roads under the Government - Business Actor Cooperation (Kerja Sama Pemerintah dan Badan Usaha – "KPBU") scheme, the Minister of Public Works and Public Housing ("Minister") has now set a number of applicable procedures that must be followed in order to secure approvals for the utilization of imported goods and/or foreign workers (collectively referred to as "Assets") during any KPBU-based construction and management of toll roads through the issuance of Circular No. 21/SE/M/2022 ("Circular 21/2022").
- Circular 21/2022 sets limits on the utilization of Assets (that relate to a ceiling value determined by the Ministry of Public Works and Public Housing) during the following periods: 1) For the 2022 period: maximum limit of 10%; and 2) For the 2023 and 2024 periods: maximum limit of 5%.
- Approvals for the utilization of Assets may be granted after the following requirements have first been fulfilled: 1) Toll-road projects must be in line with the official list of domestic product and labor ("Domestic Asset") priorities, as detailed under Sections E.4 and E.8 of Circular 21/2022; and 2) The availability of Domestic Assets must have been proven through legitimate sources of information (e.g. information sourced from Construction Services Development Agencies [Lembaga Pengembangan Jasa Konstruksi/LPJK], professional associations or other valid sources).
- In the event that the above requirements are not met, then the relevant BUJT may submit applications for the utilization of Assets to the Minister through the Director-General of Construction Development enclosing the relevant domestic product availability result, technical justification and specification requirements for the utilization of said Assets.
- Circular 21/2022 has been in force since 23 November 2022.
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