The legislation, known as the construction services bill, is now being deliberated at the House of Representatives.

An article in the bill stipulates that foreign companies or businesspeople intending to carry out construction work in the country will be obliged to set up a representative office in Indonesia or a joint company with a local construction firm.

The representative office will also be obliged to have a joint operation with big national construction firm in the projects and to prioritize the hiring of local workers and the procurement of locally sourced materials and technology, among other things.

Foreign workers intending to work in Indonesia will also be limited to experts who obtain government certification and obliged to perform transfer of technology and information.

“Even though we are in a competitive era, it doesn’t mean we can be open without any protection for local construction service companies. We have to take a side,” Public Works and Public Housing Minister Basuki Hadimuljono said on the sidelines of a hearing on the bill on Wednesday.

The minister said the current open market would not be translated into liberalization in the construction sector, even though national companies should also not be too spoiled by protectionism.

Basuki also said that the foreign companies would also have to take big projects, which could also mean they could not take projects valued under Rp 50 billion (US$3.72 million) that are currently only allowed to be taken by regional industry players.

The bill, which would serve as a revision of the existing 1999 law on construction, will also address other things such as the organization of the construction industry, certification, payment of workers and the criminalization of failing construction.

The bill stipulates that the cause of failing construction should be decided by expert assessment and that any legal process involving a construction project should be based on the assessment by the Supreme Audit Agency (BPK) and the Development Finance Comptroller (BPKP).

The government will also formulate a standardized minimal payment for human resources in the construction sector, especially for the experts, as well as assign the ministry to establish the Construction Service Registration and Certification Body (BRSJK) to take over the role of the existing Construction Development Agency (LPJK).

“Compared to the oil and gas sector, the payment is way too small. This is more of the appreciation of the profession,” Basuki said, adding that the ministry also aimed to boost the competitiveness and the competency of the country’s human resources in construction.

Legislator Muhidin Mohamad Said said that once it is passed into law the bill would also empower construction associations to certify their members while the certification body gives accreditation to the associations.

“If there is a construction failure or negligence, we can also warn the association, so the association will not just give away the certification,” said Muhidin, deputy chairman for Commission V overseeing transportation and infrastructure.

He added that there would be requirements for an association before it is authorized to issue certification, including having a certain number of branches across the country.

He said that the bill would likely be deliberated in May this year.

Meanwhile, Indonesian Construction Association (AKI) secretary-general Zali Yahya welcomed the government’s protection of national industries.

“Competitiveness is inevitable in the global market, but the political will is good,” he said.

He also said that since a mere 40 percent of construction workers were certified, he hoped to see more workers get certification following the upcoming deliberation of the bill.