Construction Business Licenses for Foreign Investment

The Minister of Public Works and Public Housing(“Minister”)has just issued Regulation No. 03/PRT/M/2016 (“2016 Regulation”)on Technical Guidelines for the Granting of Construction Business Licenses for Foreign Investment.The 2016 Regulation sets out a number of technical guidelines relating to the implementation of Ministerial Regulation No. 22/PRT/M/2014 on the Delegation of the Authority to Grant Business Licenses for the Fields of Public Works and Public Housing through the One-Stop-Integrated-Services Facility at the Indonesian Investment Coordinating Board (“BKPM”).The 2016 Regulation is of relevance to foreign-investment companies working in the construction industry, be they working as “Planners” (perencana konstruksi), “Contractors” (pelaksana konstruksi), or “Supervisors” (pengawas konstruksi).Construction BusinessesWithin the construction industry, construction businesses are further classified based on the nationality of their shareholders as follows: [1]