Brief: Effects of COVID-19 on the Construction Sector
Construction and engineering projects around the world are being impacted by the COVID-19 pandemic in numerous ways, and many projects have stopped. Despite this however, most construction works in Indonesia will be likely to continue despite the delays until a clear and proven imminent threat of COVID-19 emerges to the construction site.
Amidst the Pandemic, the Minister of Public Works and Housing (MPWH) has issued an Instruction to mitigate COVID-19 risks in relation to construction service works.
The instruction covers (i) COVID-19 Prevention protocols during construction works; (ii) the impact on construction contracts of COVID-19; and (iii) protocols for preventing COVID-19 in the procurement of goods for construction services.
This instruction applies to only Projects within MPWH. Thus, it is only binding to the state apparatuses working under the MPWH. The ministerial instruction is not legally binding on the public. It is for this reason that most construction works in Indonesia are likely to continue although with delayed
It is noted that the MPWH instruction, together with the presidential decree declaring COVID-19 as a non-natural national disaster make a strong basis to indicate that the current condition, namely the COVID -19 pandemic, can be used to showcase the existence Force Majeure.
For more or information on the above, see the article and document compilation below
For general information on the Impact of COVID-19 on the Indonesian construction sector and MPWH instruction:
Information related to Force Majeure for Indonesian construction works:
For general Global guidance on COVID-19 and the construction Sector:
For guidance as to future considerations for those in construction: