Undestanding The Minister of Public Works Regulation No. 6 of 2025: Key Implications For Licenses of Foreign Investment Construction Service Companies

As an implementing regulation of Government Regulation No. 28 of 2025 regarding updates to Risk-Based Business Licensing in Indonesia, the Ministry of Public Works of the Republic of Indonesia (MoPW) has updated the provisions governing the compliance requirements for construction services business entities in Indonesia through the issuance of Minister of Public Works Regulation No. 6 of 2025 on the Business Activity Standards and/or Product/Service Standards, Implementation of Supervision, and Imposition of Sanctions in the Organization of Risk-Based Licensing in the Public Works Sector (MoPW Reg 6/2025). This regulation was issued and came into effect on 30 December 2025, revoking and replacing the previous Minister of Public Works Regulation No. 6 of 2021 on the same subject.

MoPW Reg 6/2025 introduces improvements to the licensing process through more streamlined and focused provisions. Compared with the previous regulatory regime, which generally set out the main licensing provisions at the government regulation level specifically under Government Regulation No. 5 of 2021, MoPW Reg 6/2025 further elaborates the applicable sanctions and supervision process, thereby providing more specific guidance for implementation at the sectoral level.

The key provisions for foreign investment construction service companies (Badan Usaha Jasa Konstruksi Penanaman Modal Asing/BUJK PMA) under the current construction regulatory regime include the capital ownership and technical requirements, business segmentation provisions, extension of business licenses, and applicable sanctions.

Provisions Regarding BUJK PMA in the New Regulation

The Requirements for the Establishment of BUJK PMA

• a maximum foreign ownership of 70% by a foreign investor from ASEAN countries; and 
• a maximum foreign ownership of 67% by a foreign investor from non-ASEAN countries.

• the foreign investor is registered as a construction services business entity (Badan Usaha Jasa Konstruksi/BUJK) in the form of a legal entity with a large qualification in its country and the same business classification as the local investor. 
• the local investor is registered as a BUJK with large qualification, as demonstrated by its construction services business license and valid SBU, and has the same business classification as the foreign investor.