INDONESIA

CONSTRUCTION
DEVELOPMENT
BRIEF OUTLOOK
 OUTLINE

Construction Construction
Sector Sector
Profile Regulation
BASIC INFORMATION

• Area :1.904.569 km2

• Population : 261,89 million
people (2017)
• GDP 2016 : $1.005 trillion $
• Construction Work Force :
7.211.967 people
• GCI : 45th/135

3
1
CONSTRUCTION
SECTOR PROFILE
Construction GDP

GCI Global
Indonesia is focusing on
Infrastructure Value

Infrastructure development
National Medium Term

PROFILE
Development Plan
(RPJMN)
 Source :
Directorate of Institutional and
Construction Resources
Development, 2018

SMALL MEDIUM LARGE

General Contractor
Qualification Individual Small Medium Large
Total Contractor Consultant Total
Sub Qualification P K1 K2 K3 M1 M2 B1 B2
110 79,095 12,361 15,248 14,635 3,864 1,093 545 126,951 National 126.469 7.737 136.005
Total
110 106,704 18,499 1,638 126,951 Foreign
312 41 4.546
Specialist Contractor
Investment
Foreign
Qualification Individual Small Medium Large 169 44 213
Total General

PROFILE
Sub Qualification P K1 K2 K3 M1 M2 B1 B2
0 4,625 131 140 986 73 14 23 5,992 National
Total 1.799 - 1.799
0 4,896 1,059 37 5,992 Specialist
General Consultant
Foreign
Investment 4.193 - 4.193
Qualification Individual Small Medium Large
Total Specialist
Sub Qualification P K1 K2 M1 M2 B
8 4,275 2,277 612 254 396 7,822 Foreign
Total 0 - 0
8 6,552 866 396 7,822 Specialist
Total 126.951 7.822 140.764
Source : National Construction Services Development Board, March 2018
Construction Workforce ACPE & AA Cerified Experts & Workers

PROFILE
Being Innovative in Funding the
Infrastructure Development
Joko Widodo, President, 2018

CONSTRUCTION INVESTMENT
 RENSTRA PUPR GAP VISIUM VISIUM
2015-2019 2017-2019 2020-2024 2030

Kapasitas Tampung Kapasitas Tampung

Kapasitas Tampung Kapasitas Tampung
50 m3/c/th (baseline 120 m3/c/th
57,75 m3/c/th 68,11 m3/c/th
2014) Anggaran Rp. 1.432
Anggaran Rp. 306 T Anggaran Rp. 577 T
SUMBER Anggaran Rp. 316 T T
DAYA AIR

Jalan Mantap 94% Jalan Mantap 97% Jalan Mantap 99%

Jalan Mantap 98%
Jalan Tol 824 km Jalan Tol 1.500 km Jalan Tol 2.000 km
Jalan Tol 1.000 km
Jalan Baru 1.320 km Jalan Baru 2.500 km Jalan Baru 3.000 km
Jalan Baru 2.650 km

VISIUM MPOWH 2030

Jembatan Baru/FO Jembatan Baru/FO Jembatan Baru/FO
Jembatan Baru/FO
BINA 39.000M 60.000M 70.000M
29.859 M
MARGA Anggaran Rp. 183 T Anggaran Rp. 330T Anggaran Rp. 448T
Anggaran Rp. 278 T
Investasi Rp. 202 T Investasi Rp. 243 T Investasi Rp. 390 T

100% Air Minum 88% Air Minum 100% Air Minum

78% Air Minum
0 ha Kumuh 17.000 ha Kumuh 0 ha Kumuh
27.000 ha Kumuh
100% Sanitasi 85% Sanitasi 100% Sanitasi
75% Sanitasi
CIPTA
Anggaran Rp. Anggaran Rp. Anggaran Rp.
Anggaran Rp.45 T
KARYA 128T 128T 170T

5,4 jt Backlog MBR 5 jt Backlog MBR 3 jt Backlog MBR

5,4 jt Backlog MBR Pembangunan 2,76 Pembangunan 3,9 juta Pembangunan 4,88 juta
unit unit
Pembangunan 4,47 juta unit Anggaran Rp. 780 T Anggaran Rp. 1.220 T
juta unit Anggaran Rp. 414 T 20%-30% APBN/APBD 20%-30% APBN/APBD
PENYEDIAAN Anggaran Rp. 186T 10% APBN/APBD 70%-80% 70%-80%
PERUMAHAN 90% Masyarakat Swasta/Masyarakat Swasta/Masyarakat
Sumber: Permen PUPR No.26/PRT/M/2017 tentang Panduan Pembangunan Budaya Integritas di Kementerian PUPR
Permen PUPR No.13.1/PRT/M/2015 tentang Rencana Strategis Kementerian PUPR
Total 2020-2030 sebesar 5.704T
2.053T 3.651T
Proyeksi 2020-2040 sebesar 12.000T
 1.120 km 10.029 m
46 Bendungan Pembangunan Jalan Pembangunan Jembatan (tidak
40 ribu ha termasuk jembatan gantung)
Pembangunan

PRIORITY INFRASTRUCTURE ON 2019

200 km Jaringan Irigasi 670 km
Baru
Pembangunan sarana & Pembangunan Jalan Tol 1.467 m
prasarana pengendali (Pemerintah & Swasta)
Pembangunan
banjir
HIGHWAY AND Flyover/Underpass/Terowongan
54
31 Pembangunan ROADS
Pembangunan pengendali Embung
Lahar/Sedimen HUMAN
22 km SETTLEMENT 2.564 ha
4,3 m3/detik Pembangunan dan Penanganan Inf. Kawasan
Pembangunan peningkatan sarana 5.700 Liter/detik Permukiman Kumuh
peningkatan sarana & & prasarana Pembangunan SPAM
prasarana pengelolaan air pengaman pantai
baku
603.863 KK 1.960.686 KK
Pelayanan Sistem Persampahan
WATER RESOURCES Pengolahan Air Limbah

HOUSING
13.500 unit 250.000 unit 5.000 unit 30.000 unit
Rumah Susun Rumah Swadaya Rumah Khusus PSU Perumahan
2 CONSTRUCTION
SECTOR
REGULATION
 REGULATIONS ON CONSTRUCTION SECTOR
QUALITY DELIVERY
ASSURANCE OF LAW 2 /2017 SYSTEMS
CONSTRUCTION IMPROVEMENT
1. Scope : Services, Building Provision
PRODUCT
Services and Business, Supply Chain
2. Founding : decentralization
3. Legal protection
4. Disclosure of information using
technology
5. Classification of business support
PUBLISHED LABOUR competitiveness.
ACT, ENERGY AND 6. The ease in venture
MINERALS RESOURCES 7. Sustainable development (CPD, CBD)
ACT, ENGINEERS ACT, 8. Quality assurance of construction
INTERNATIONAL
products
STANDARDS,
ELECTRONICAL
9. Improved standard of Labor
INFORMATION & Remuneration GOOD
TRANSACTION ACT, 10. Public Role Reformation GOVERNANCE
PUBLIC INFORMATION
DISCLOSURE ACT

FREE TRADE, 1. Government Regulation 28/2000 tentang Tata Usaha dan Peran
AEC, TRANS- Masyarakat Jasa Konstruksi
PASIFIC
PARTNERSHIP
2. Presidential Regulation 20/2018 tentang Penggunaan Tenaga Kerja Asing
3. Development Institutions’ National Construction Services Regulation
Nomor 1 Tahun 2015 tentang Registrasi Badan Usaha Jasa Konstruksi Asing
 Act 1994 No. 07 about validation of
Agreement Establishing The World
Trade Organization
Indonesian Law 2017 No 2 on
Construction Services
Government regulation 2000 No 28 on
revision 04/2010 about business and
community role in construction service
Ministerial PU Regulation 2014 No 10
about Guidance of requirement and
issuing license for representative
BUJKA
Ministerial PUPR Regulation 2014 No 22
about Procedure to delegate authority
for issuing business license in BKPM
Ministerial PUPR Regulation 2014 No 30
about revision of Ministerial PUPR regulation
2016 No 03/PRT/M about technical
guidelines for Issuing license for
Foreign capital Investment of BUJK
• Agreed by Indonesian and other WTO member that there are
limitation market access for foreign construction service company
which will have business construction activity in Indonesian.
• One of requirement for construction service company to have
LEGAL BASIS ON FOREIGN ENTITY
authority to conduct business is to have construction service
business license.
• Article 14 paragraph (4)  Foreign construction service company fulfill
requirements : received registration letter from LPJK, establish representative
office, notify yearly business activity report for extension the license, and
comply with regulation
• Consist of procedure to apply and license requirement for representative
BUJKA
• Article 6 paragraph (3) regulate for administration fee of new or extend the
license
• Delegation authority for issuing business license in PUPR section in
relation to perform integrity services or one door access at BKPM
• Consist of procedure to apply and requirement of license in
foreign capital investment of BUJK
 - Clearance of Company
Name
MoLHR - Issuer of Deed of MoMP - Register of Manpower
Establishment

Kemenkumham Kemenaker

- NPPKP (VAT collector - Workers Social Security

number) Program
MoF - NPWP (taxpayer SSAB - Healthcare Insurance
registration number) Program

KEY STAKEHOLDERS
Kemenkeu BPJS

- Check and Verify - Monitoring and

Submission Document Evaluation of Given
CICB - Validate and MoPWH Criteria and Obligation
Authenticate - Receive report of
- Issuing permit projects
BKPM PUPR
 Prevail Throughout
Indonesian

CONSTRUCTION
INDIVIDUAL CONSTRUCTION
INDIVIDUAL SERVICES
SERVICES
BUSINESS BUSINESS BUSINESS ENTITY BUSINESS
REGISTRATION FORM PERMIT (IUJK)
(TDUP)

TDUP dan IUJK

awarded by the
Regional Government
Article 26-31, Law 2/2017 in the District / City Article 19-25, Law 2/2017
of domicile

BUSINESS TYPE MARKET SEGMENTATION

1. Low Risk

MARKET ENTRY
1. Individual Business and
2. Simple Technology and
2. Small Business Entity Qualification
3. Low Cost
1. Middle Risk
1. Medium Business Entity
2. Intermediate Technology and/or
Qualification
3. Middle Cost
1. Large Business Entity Qualification
1. High Risk
2. Foreign Enterprises
2. High Technology and/or
Construction Services
3. High Cost
Representatives

1. Expatriate Placement Plan
“Rencana Penggunaan Tenaga
Kerja Asing (RPTKA)” and
permit to hire foreign
construction worker (IMTA)
2. Limited positions for foreign
employees
1. equivalent with high qualifications;
2. licensed representatives of foreign enterprises Construction
Services;
3. JO with the large qualification national agencies Construction
Services
4. More Indonesian workers than foreign workers;
5. Indonesia citizen as the supreme head of the representative
office
6. prioritize domestic materials and construction technology;
7. has a high-tech, cutting-edge, efficient, environmentally sound, and
with regard to local wisdom;

OBLIGATION OF FOREIGN ENTITY

3. Registration Letter from the 8. implement technology transfer process; and
Minister 9. Oblige the regulation.
Representative
Office

Work Competency Business Entity

Certificate Certificate

4. Registration Letter given by

FOREIGN competency certificate FOREIGN
CONSTRUCTION Indonesia Legal
WORKER according to foreign country Business Entity
law SERVICES with Capital
ENTERPRISE
Cooperation with
5. transfer knowledge and National
technology to local manpower, Enterprises

6. Supervision on hiring foreign
construction service employees
is implemented by an employee
supervision based on labor
regulations.
Construction Services business entity established in order for
capital cooperation must meet the large scale qualification
requirement and have business licenses
3 CONCLUSION
1 Construction sector is a fast growing business that
spearheaded National’s Development

2 Financing the Infrastructure through innovations such as PPP

scheme and SUKUK to ease Goverment Budget’s burden

3 Involvement foreign entity in form of Direct Investment or

construction services operation is a neccessity

CONCLUSION
Selective “field of play” and clear obligations for foreign
4 entity to empower the national corporation