PERMENPUPR 9/2020: Establishment of Indonesia's Construction Services Development Agency (LPJK)

Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Nomor 9 Tahun 2020 tentang Pembentukan Lembaga Pengembangan Jasa Konstruksi ("PERMENPUPR 9/2020") establishes the institutional framework for Indonesia's Construction Services Development Agency (Lembaga Pengembangan Jasa Konstruksi/LPJK). Enacted on March 30, 2020, and effective April 6, 2020, this regulation creates the primary body responsible for construction industry development, competency certification, and quality assurance.

Institutional Mandate and Structure

PERMENPUPR 9/2020 designates LPJK as an independent agency under the Ministry of Public Works and Housing with the core functions of:

1. Professional Certification: Issuing construction professional competency certificates (Sertifikat Keahlian/SKA and Sertifikat Keterampilan/SKT)
2. Company Registration: Maintaining the Construction Business Entity Registry (Sertifikat Badan Usaha/SBU)
3. Standards Development: Formulating construction service standards and best practices
4. Quality Assurance: Monitoring compliance with construction quality and safety standards
5. Capacity Building: Providing training and technical assistance to construction professionals

Organizational Framework

The regulation establishes LPJK at three administrative levels:
- LPJK National: Oversees national-level policy formulation and inter-provincial coordination
- LPJK Provincial: Manages provincial certification and registration programs
- LPJK Regency/City: Implements local-level services and monitoring

This tiered structure ensures nationwide coverage while maintaining proximity to local construction stakeholders. LPJK governance includes representatives from government, construction associations, professional organizations, academia, and business entities, ensuring multi-stakeholder participation.

Professional Competency Certification System

LPJK administers Indonesia's construction professional certification system through:

Sertifikat Keahlian (SKA) for construction professionals including:
- Civil engineers
- Architects
- Structural engineers
- Quantity surveyors
- Construction managers

Sertifikat Keterampilan (SKT) for skilled construction workers covering:
- Masons
- Carpenters
- Steel fixers
- Equipment operators
- Safety supervisors

Certificates are issued based on competency assessments aligned with Indonesian National Standards of Competency (Standar Kompetensi Kerja Nasional Indonesia/SKKNI). The certification system ensures that construction projects are staffed by qualified professionals, reducing structural failures and safety incidents.

Construction Business Entity Registration (SBU)

PERMENPUPR 9/2020 mandates that all construction companies obtain Sertifikat Badan Usaha (SBU) from LPJK as a prerequisite for bidding on government projects. SBU classification is based on:
- Financial capacity (working capital, revenue)
- Technical capacity (equipment, past projects)
- Management capacity (certified professionals, organizational structure)

Companies are classified into small (K1), medium (K2), and large (K3) categories, determining the value and complexity of projects they can undertake. This classification system promotes fair competition and prevents unqualified contractors from bidding on complex projects beyond their capability.

Quality Assurance and Industry Development

LPJK's quality assurance functions include:
- Conducting post-construction evaluations
- Investigating structural failures and accidents
- Developing construction standards and guidelines
- Facilitating technology transfer and innovation
- Promoting sustainable and green construction practices

Through these activities, LPJK aims to elevate Indonesia's construction industry standards to international benchmarks, supporting the country's massive infrastructure development agenda under the National Medium-Term Development Plan (RPJMN).

Implementation Challenges and Future Directions

While PERMENPUPR 9/2020 provides a robust institutional framework, implementation faces challenges:

First, digitalization: Transitioning from paper-based to fully digital certification and registration systems requires significant IT infrastructure investment.

Second, enforcement: Ensuring that only certified professionals and registered companies participate in construction projects requires strengthened monitoring and sanctions for non-compliance.

Third, capacity: Training sufficient numbers of competent assessors and auditors to serve Indonesia's vast construction market (6,000+ islands, 500+ regencies/cities) remains an ongoing challenge.

Fourth, harmonization: Aligning LPJK certifications with ASEAN Mutual Recognition Arrangements (MRAs) to facilitate cross-border professional mobility requires standardization efforts.

Despite these challenges, LPJK plays a critical role in professionalizing Indonesia's construction sector, which contributes approximately 10% of GDP and employs over 7 million workers. As Indonesia pursues ambitious infrastructure targets—including 10,000 km of new roads, 3,000 km of toll roads, and mass rapid transit systems in major cities by 2030—LPJK's certification and quality assurance functions become increasingly vital.

Conclusion

PERMENPUPR 9/2020 establishes LPJK as the cornerstone institution for Indonesia's construction industry development. By certifying professionals, registering businesses, and enforcing quality standards, LPJK contributes to safer, higher-quality infrastructure that supports national economic development and public welfare. The regulation's multi-stakeholder governance model ensures balanced representation of industry interests while maintaining public accountability through government oversight.

Sumber Hukum: PERMENPUPR 9/2020 di BPK

Peraturan Terkait: UU 2/2017 (Jasa Konstruksi), PP 14/2021 (Perizinan Berusaha Jasa Konstruksi)

Sektor: Construction, Professional Standards, Infrastructure

Status Regulasi: Aktif

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