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According to the Law of the Republic of Indonesia No. 2 of 2017 concerning Construction Services (“Law No. 2/2017”), the Indonesian Government is authorized to develop Security, Safety, Health and Sustainability standards in the implementation of Construction Services, supervise the implementation of Security, Safety Standards, Health and sustainability in the operation and utilization of Construction Services by a Construction Service Business Entity (BUJK), organizing a registration of expert appraisers, and assigning registered expert appraisers in the event of a Construction Failure.

In essence, any party who will provide construction services as a service user or construction service provider is required to have an Individual Business Registration Certificate (if individual) and a Construction Service Business License and a Business Entity Certificate (if as business entity). As with every construction worker who works in the construction service sector, they must have a Work Competency Certificate. The entire series of permits has its own requirements and procedures by the Government, and must be supervised by the Government, so that every person or business entity involved in a construction project should have the expected feasibility and skills in each field of construction under its responsibility.

Furthermore, if any work accident occurs due to a building failure or in the event that the construction services does not meet the Safety, Health, and Sustainability Standards, the service user and/or construction service provider can be the party responsible for the building failure.


Construction service providers and/or construction service users are obliged to replace or repair building failures caused by their fault. The period of responsibility for failure of the intended building must be in accordance with the planned construction age. For example, in the case that the construction age plan as intended is more than 10 (ten) years, the construction service provider and/or user must be responsible for the failure of the building within a period of 10 (ten) years from the date of the final delivery of construction services.

f there is any negligence of the construction service user and/or provider in terms of licensing and compliance with construction feasibility, the construction service user and/or provider may be subject to sanctions in the form of written warnings, administrative fines, temporary suspension of construction service activities, blacklisting, freezing of license, and/or revocation of license.



Suria Nataadmadja & Associates Law Firm

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