May

05

Indonesian Omnibus Law: Simplification on Construction Services Licensing Procedures

Law number: 11 of the Year 2020, concerning Job Creation or commonly known as Omnibus Law, is one of the breakthrough bills aimed to boost economic and business activities and growth in Indonesia. One of the sectors majorly affected currently is the Construction industry. Though in 2018, the government had simplified licensing procedures and regulations for the said business activity with Government Regulation Number: 24 of the Year 2018 concerning Electronic Integrated Business Licensing Services, the Indonesian government seeks the need to make further and more drastic changes to ease the construction companies. It was enacted in 2021 with Government Regulation Number: 5 of the Year 2021 on Implementation of Risk-Based Business License (“GR 5/2021”) based on the Omnibus Law.

Article 52 of Omnibus Law has replaced the term “Construction Services Business License” or IUJK with the new terminology “Business License” thereby effectively revoked the existence of such a permit. Article 81 section 1 juncto Article 176 section 1 of GR 5/2021 underlined the new regulation by listing the business permits needed to perform Construction Services which consisted of Business Registration Number (NIB) and Standard Certificate. All of which are valid as long as the construction services are conducted and need not be extended to National Construction Companies (BUJKN) andfor Foreign Construction Companies, the said licenses are valid for three years and can be further extended.

The Standard Certificate is issued by OSS Institution to the companies by making a statement for which the obtainer shall meet the standards of conducting the related business activities and shall be willing to be verified by the authorized Government authority(Central or Regional). After the verification, the details will be updated in the system, and the verified Standard Certificate will be issued, which can be downloaded by the obtainer through OSS System.

The simplification mentioned above was enacted alongside article 81 section 1 of GR 5/2021, which required Construction Companies to obtain other supporting business licenses that include :
  • Construction Business Entity Certificate (SBU);
  • Construction Work Competence Certificate (SKK);
  • Registration of Foreign Construction Companies Representative Offices (BUJKA);
  • License from Construction Companies Certification Institution;
  • License from Construction Services Profession Certification Institution;
Apart from the type of licenses, Omnibus Law also removed Article 31 of Law Number: 2 of the year 2017 concerning Construction Services that required middle and large-scale construction companies to obtain acknowledgment and registration certificates on their business expertise related to construction services.  Should you need legal advisory or consultation for investment within Indonesia, please do not hesitate to contact us. Drop us an email at info@schinderlawfirm.com.

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.