I n accordance to Law No. 18/ 1999 of the Republic of Indonesia (re.: Construction Services) and its implement-ing regulations; I ndonesia s Specific Commitments under GATS (General Agreement on Trade in Services) of the WTO (World Trade Organization) and AFAS (ASEAN Frame-work Agreement on Services); and Presidential Decree No. 80/ 2003 (re.: Guidelines for Government Procure-ment of Goods/ Services), foreign company who intends to participate procurement of construction services in In-donesia shall comply with the following regulations :
1 . LICENCING
As specified in Government Regulation No. 28/ 2000, foreign company shall obtain authorization certificate (I jin Usaha Jasa Konstruksi / I UJK) from the Govern-ment by complying with the following requireGovern-ments: a. Having registration certificate issued by the National
Construction Services Development Board (CSDB); b. Establishing representative office in Indonesia; c. Providing annual activity report for the extension of
its business authorization certificate; and
d. Complying with all of the requirements specified in the related regulations
2 . ELI GI BI LI TY OF CONSTRUCTI ON W ORKS
A high risk construction work and/or construction work involving sophisticated technology and/or construction work requiring a big investment cost can only be un-dertaken by Limited Liability Company/ies (Perseroan Terbatas / PT ) or foreign company having similar qualification.
3 . JO and JV REQUI REMENTS
To undertake construction works in Indonesia, foreign company shall form a Joint Operation (JO) or Joint Venture (JV) with Indonesian Construction Company/ ies having registration certificate as a big company/ies issued by CSDB.
To form joint venture, capital share owned by foreign company/ ies shall not be more than 55% for con-structing services provider and 49% for consulting ser-vices provider.
4 . OTHER REQUIREMENTS IN GOVERNMENT PRO-CUREMENT
a. Foreign companies may participate Government Procurement of construction services with the value of:
1). More than Rp.
50.000.000.000,-(fifty billion Rupiahs) for constructing services; 2). More than Rp.
5.000.000.000,-(five billion Rupiahs) for consulting services; 3). More than Rp.
10.000.000.000,-(ten billion Rupiahs) for other services. b. I n undertaking constructions works in I ndonesia,
foreign company shall works in collaboration with Indonesian construction company/ies who has/have the required competency.
