Indonesia Omnibus Bill – Changes To Construction Services Law

(20 October 2020) The Indonesian House of Representatives (DPR) recently passed the Omnibus Bill on Job Creation (the "Omnibus Bill"). The stated aim of the Omnibus Bill is to bolster investment and create jobs by streamlining regulations and simplifying the licensing process to improve the ease of doing business in Indonesia.

The Omnibus Bill revises various provisions in laws across numerous sectors, including Law No. 2 of 2017 regarding Construction Services (the "Construction Law").

As many as 33 articles of the Construction Law have been amended or revoked by the Omnibus Bill, with the most significant changes related to amendments in licensing, an overhaul of the authority of the Minister of Public Works and Housing ("MPWH") and sanctions.