Indonesia Construction Development #final.pdf

INDONESIA CONSTRUCTION DEVELOPMENT BRIEF OUTLOOK

OUTLINE

Construction Sector Profile

Construction Sector 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

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CONSTRUCTION SECTOR PROFILE

GCI Global

National Medium Term Development Plan (RPJMN)

PROFILE

Construction GDP Infrastructure Value

Indonesia is focusing on Infrastructure development

Source : Directorate of Institutional and Construction Resources Development, 2018

SMALL

MEDIUM

LARGE

General Contractor

126,951 126,951

Specialist Contractor Qualification

Individual Sub Qualification P 0 Total 0

K1 4,625

Small K2 131 4,896

K3 140

Medium M1 M2 986 73 1,059

Large B1 B2 14 23 37

General Consultant Qualification Sub Qualification

Total

Individual Small P K1 K2 8 4,275 2,277 8 6,552

Medium M1 M2 612 254 866

Large B 396 396

Source : National Construction Services Development Board, March 2018

Total

7,822 7,822

Contractor Consultant

Total

Total 5,992 5,992

National Foreign Investment Foreign General National Specialist Foreign Investment Specialist Foreign Specialist Total

Total

126.469

7.737

136.005

312

41

4.546

169

44

213

1.799

-

1.799

4.193

-

4.193

0

-

0

126.951

7.822

140.764

PROFILE

Qualification Individual Small Medium Large Sub Qualification P K1 K2 K3 M1 M2 B1 B2 110 79,095 12,361 15,248 14,635 3,864 1,093 545 Total 18,499 110 106,704 1,638

PROFILE

Construction Workforce

ACPE & AA

Cerified Experts & Workers

Joko Widodo, President, 2018

CONSTRUCTION INVESTMENT

Being Innovative in Funding the Infrastructure Development

RENSTRA PUPR 2015-2019

GAP 2017-2019

VISIUM 2020-2024

Kapasitas Tampung 50 m3/c/th (baseline 2014) Anggaran Rp. 316 T

Kapasitas Tampung 57,75 m3/c/th Anggaran Rp. 306 T

Kapasitas Tampung 68,11 m3/c/th Anggaran Rp. 577 T

Kapasitas Tampung 120 m3/c/th Anggaran Rp. 1.432 T

BINA MARGA

Jalan Mantap 98% Jalan Tol 1.000 km Jalan Baru 2.650 km Jembatan Baru/FO 29.859 M Anggaran Rp. 278 T

Jalan Mantap 94% Jalan Tol 824 km Jalan Baru 1.320 km Jembatan Baru/FO 39.000M Anggaran Rp. 183 T Investasi Rp. 202 T

Jalan Mantap 97% Jalan Tol 1.500 km Jalan Baru 2.500 km Jembatan Baru/FO 60.000M Anggaran Rp. 330T Investasi Rp. 243 T

Jalan Mantap 99% Jalan Tol 2.000 km Jalan Baru 3.000 km Jembatan Baru/FO 70.000M Anggaran Rp. 448T Investasi Rp. 390 T

CIPTA KARYA

100% Air Minum 0 ha Kumuh 100% Sanitasi Anggaran Rp. 128T

78% Air Minum 27.000 ha Kumuh 75% Sanitasi Anggaran Rp.45 T

88% Air Minum 17.000 ha Kumuh 85% Sanitasi Anggaran Rp. 128T

100% Air Minum 0 ha Kumuh 100% Sanitasi Anggaran Rp. 170T

5,4 jt Backlog MBR Pembangunan 4,47 juta unit Anggaran Rp. 186T

5,4 jt Backlog MBR Pembangunan 2,76 juta unit Anggaran Rp. 414 T 10% APBN/APBD 90% Masyarakat

5 jt Backlog MBR Pembangunan 3,9 juta unit Anggaran Rp. 780 T 20%-30% APBN/APBD 70%-80% Swasta/Masyarakat

3 jt Backlog MBR Pembangunan 4,88 juta unit Anggaran Rp. 1.220 T 20%-30% APBN/APBD 70%-80% Swasta/Masyarakat

PENYEDIAAN PERUMAHAN

VISIUM MPOWH 2030

SUMBER DAYA AIR

VISIUM 2030

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

2.053T

3.651T

Total 2020-2030 sebesar 5.704T Proyeksi 2020-2040 sebesar 12.000T

200 km Pembangunan sarana & prasarana pengendali banjir

31 Pembangunan pengendali Lahar/Sedimen

4,3 m3/detik Pembangunan peningkatan sarana & prasarana pengelolaan air baku

1.120 km

10.029 m

40 ribu ha

Pembangunan Jalan

Pembangunan Jaringan Irigasi Baru

Pembangunan Jembatan (tidak termasuk jembatan gantung)

670 km Pembangunan Jalan Tol (Pemerintah & Swasta)

HIGHWAY AND ROADS

54 Pembangunan Embung

HUMAN SETTLEMENT 5.700 Liter/detik

22 km Pembangunan dan peningkatan sarana & prasarana pengaman pantai

1.467 m Pembangunan Flyover/Underpass/Terowongan

2.564 ha Penanganan Inf. Kawasan Permukiman Kumuh

Pembangunan SPAM

603.863 KK

WATER RESOURCES

Pengolahan Air Limbah

1.960.686 KK Pelayanan Sistem Persampahan

HOUSING 13.500 unit

250.000 unit

5.000 unit

30.000 unit

Rumah Susun

Rumah Swadaya

Rumah Khusus

PSU Perumahan

PRIORITY INFRASTRUCTURE ON 2019

46 Bendungan

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CONSTRUCTION SECTOR REGULATION

LAW 2 /2017 1.

Scope : Services, Building Provision Services and Business, Supply Chain 2. Founding : decentralization 3. Legal protection 4. Disclosure of information using technology 5. Classification of business support competitiveness. 6. The ease in venture 7. Sustainable development (CPD, CBD) 8. Quality assurance of construction products 9. Improved standard of Labor Remuneration 10. Public Role Reformation

PUBLISHED LABOUR ACT, ENERGY AND MINERALS RESOURCES ACT, ENGINEERS ACT, INTERNATIONAL STANDARDS, ELECTRONICAL INFORMATION & TRANSACTION ACT, PUBLIC INFORMATION DISCLOSURE ACT

FREE TRADE, AEC, TRANSPASIFIC PARTNERSHIP

1. 2. 3.

DELIVERY SYSTEMS IMPROVEMENT

GOOD GOVERNANCE

Government Regulation 28/2000 tentang Tata Usaha dan Peran Masyarakat Jasa Konstruksi Presidential Regulation 20/2018 tentang Penggunaan Tenaga Kerja Asing Development Institutions’ National Construction Services Regulation Nomor 1 Tahun 2015 tentang Registrasi Badan Usaha Jasa Konstruksi Asing

REGULATIONS ON CONSTRUCTION SECTOR

QUALITY ASSURANCE OF CONSTRUCTION PRODUCT

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

• 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 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

Ministerial PUPR Regulation 2014 No 22 about Procedure to delegate authority for issuing business license in BKPM

• Delegation authority for issuing business license in PUPR section in relation to perform integrity services or one door access at 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

• Consist of procedure to apply and requirement of license in foreign capital investment of BUJK

LEGAL BASIS ON FOREIGN ENTITY

Act 1994 No. 07 about validation of Agreement Establishing The World Trade Organization

MoLHR

-

Clearance of Company Name Issuer of Deed of Establishment

MoF

-

NPPKP (VAT collector number) NPWP (taxpayer registration number)

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BKPM

Register of Manpower

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Workers Social Security Program Healthcare Insurance Program

SSAB

-

BPJS

Kemenkeu

CICB

-

Kemenaker

Kemenkumham

-

MoMP

-

Check and Verify Submission Document Validate and Authenticate Issuing permit

MoPWH

PUPR

Monitoring and Evaluation of Given Criteria and Obligation Receive report of projects

KEY STAKEHOLDERS

-

Prevail Throughout Indonesian

INDIVIDUAL BUSINESS

Article 26-31, Law 2/2017

TDUP dan IUJK awarded by the Regional Government in the District / City of domicile

BUSINESS TYPE 1. 2.

CONSTRUCTION SERVICES BUSINESS PERMIT (IUJK)

Article 19-25, Law 2/2017

MARKET SEGMENTATION

1. Individual Business and 2. Small Business Entity Qualification 3. 1. 2. 3.

1.

Medium Business Entity Qualification

1. 2.

Large Business Entity Qualification 1. Foreign Enterprises 2. Construction Services 3. Representatives

Low Risk Simple Technology and Low Cost Middle Risk Intermediate Technology and/or Middle Cost High Risk High Technology and/or High Cost

MARKET ENTRY

INDIVIDUAL BUSINESS REGISTRATION FORM (TDUP)

CONSTRUCTION SERVICES BUSINESS ENTITY

2. Limited positions for foreign employees

3. Registration Letter from the Minister

Representative Office Work Competency Certificate

FOREIGN WORKER

4.

Registration Letter given by competency certificate according to foreign country law

5.

transfer knowledge and technology to local manpower,

6.

Supervision on hiring foreign construction service employees is implemented by an employee supervision based on labor regulations.

Business Entity Certificate

CONSTRUCTION SERVICES

Indonesia Legal Business Entity with Capital Cooperation with National Enterprises

FOREIGN ENTERPRISE

Construction Services business entity established in order for capital cooperation must meet the large scale qualification requirement and have business licenses

OBLIGATION OF FOREIGN ENTITY

1. Expatriate Placement Plan “Rencana Penggunaan Tenaga Kerja Asing (RPTKA)” and permit to hire foreign construction worker (IMTA)

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; 8. implement technology transfer process; and 9. Oblige the regulation.

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CONCLUSION

Construction sector is a fast growing business that spearheaded National’s Development

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Financing the Infrastructure through innovations such as PPP scheme and SUKUK to ease Goverment Budget’s burden

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Involvement foreign entity in form of Direct Investment or construction services operation is a neccessity

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

CONCLUSION

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