At the beginning of 2025, the Minister of Public Works of the Republic of Indonesia issued Ministerial Decree No. 1/SE/M/2025 regarding the Guidelines for Business Entity Certification Services for Certification Institutions in the Construction Services Sector That Cannot Operate Due to License Status. This decree was issued to prevent stagnation in public services, especially business entity certification, caused by Certification Institutions (LSBU) that cannot operate due to their license being revoked, suspended, or expired.
The Minister of Public Works emphasized that this Ministerial Decree serves as the basis for LSBU and the Construction Service Development Agency (LPJK) to address outstanding issues, service changes, and the revocation of Business Entity Certificates (SBU), ensuring that the SBU certification process continues without disrupting public services in the construction sector.
This Ministerial Decree is intended as a guide for business entity certification services for LSBU that cannot operate due to license status. Additionally, the Decree aims to provide a reference for the Head of LPJK to resolve service changes without an assessment process and the revocation of SBU and to serve as a guide for the leaders of non-operational LSBU in completing SBUs that have been received.
The scope of this Ministerial Decree includes the resolution of certification requests that have been received, services for changes without an assessment process, and the revocation of SBU. The content of this decree includes the Resolution of Certification Requests for Business Entities that Have Been Received, Services for Changes Without an Assessment Process, and SBU Revocation.
For certification requests that have not yet had their certification results determined, the following steps must be taken: a. LSBU informs about the license status and the follow-up on the certification request, providing certainty on the timeframe when LSBU can resume operations. b. If the applicant has made a payment and LSBU is unable to complete the request, LSBU must refund the certification fee to the applicant. c. For requests returned to the applicant, LSBU will cancel the process through the system, allowing the applicant to submit the certification request to another LSBU.
For certification requests that have been decided: a. LPJK provides limited access to LSBU to issue SBU with the validity period starting from the date the certification result is determined. b. The determination of certification results must be completed at the latest before the LSBU’s license is suspended, revoked, or expires.
For requests/complaints related to the revocation of the Technical Responsibility of Business Entity (PJTBU)/Subclassification Responsibility of Business Entity (PJSKBU), LSBU must clarify the validity of the complaint with the relevant construction service business (BUJK) and submit the clarification results to LPJK for further action. For requests to revoke SBU to reduce the number of SBUs due to financial constraints or other reasons, the revocation will be carried out by LPJK.
In this Ministerial Decree, LPJK is authorized to ensure that the cancellation of the SBU request process has been carried out through the system, allowing the applicant to submit a certification request to another LSBU. The Directorate General of Construction Supervision is authorized to conduct monitoring and evaluation of the performance of LSBU during the period when the LSBU cannot operate due to the suspension, revocation, or expiration of its license.
If the LSBU’s status is confirmed to be able to operate again, LPJK will stop the service transfer and return the service to the LSBU, while reporting the service performance during the transfer period to the Minister of Public Works with a copy to the Director General of Construction Supervision.
Furthermore, this Ministerial Decree provides important guidelines for LSBU and LPJK in handling business entity certification services in the construction sector that are hindered due to LSBU’s license status being suspended, revoked, or expired. The guidelines aim to ensure the smooth continuation of the certification process, including resolving received requests, services for changes without an assessment process, and revocation of SBUs. This process ensures that there is no stagnation in public services, with clear authority for LPJK and the Directorate General of Construction Supervision to monitor and evaluate LSBU’s performance. Additionally, if LSBU is able to resume operations, the service transfer will cease, and the performance during the transfer period will be reported to the Minister of Public Works.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of the leading corporate law firms in Indonesia, with extensive experience handling similar matters. Our team of professional corporate and civil lawyers makes us one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Dewi Susanti