The Construction Services Law stipulates that project owners and contractors (as employers) must comply with the applicable security, safety, health and sustainability standards. The primary legislation setting out health and safety requirements include:
- the Occupational Safety Law (1/1970);
- the Manpower Law, as amended by Law 6/2023;
- Government Regulation 50/2012 on Implementation of Occupational Health and Safety Management System;
- Ministry of Public Works and Housing (MPWH) Regulation 10/2021 on Construction Safety Management System Guidelines; and
- Ministry of Manpower and Transmigration Regulation Per.08/Men/VII/2010 on Personal Protective Equipment.
In addition, specific sectors – such as oil and gas and mining – may have more definitive guidelines for occupational health and safety.
Generally, employers must:
- adopt preventive measures for managing work hazards and avoiding accidents;
- monitor the physical health, mental condition and physical ability of their workers;
- inform workers of potential work hazards and safety protocols before they commence work;
- provide sufficient information and signage relating to all safety requirements in the workplace;
- provide all protective equipment needed at the workplace; and
- take all necessary precautions to prevent accidents in the workplace and submit a written report on the occurrence of accidents to the local labour office.
Companies that employ at least 100 workers or that have high hazard potential must implement a health and safety management system in accordance with the guidelines set out in Government Regulation 50/2012. Companies with high hazard potential must have their health and safety management system audited, and such audits must be reported to the Ministry of Manpower.
Employers must submit an incident report for each occurrence to the local labour office and the Social Security Agency for Employment within 48 hours of each occurrence.
Project owners and contractors that fail to comply with the applicable security, safety, health and sustainability standards may be subject to administrative sanctions, including:
- written warnings;
- administrative fines;
- the temporary suspension of construction service activities;
- blacklisting; and
- suspension and/or revocation of licences.
Furthermore, employers that fail to comply with the Occupational Safety Law may be subject to imprisonment for up to three months or a fine under Article 15.
To enhance safe construction operation, construction companies in Indonesia will usually procure international standard certificate ISO 45001:2018. This promotes a healthy work environment by providing a framework for identifying, controlling and managing risks and opportunities arising from occupational health and safety.
The Ministry of Manpower (through the Directorate General for Labour Inspection and Occupational Health and Safety) is the main government agency responsible for employment matters, including occupational health and safety. This ministry:
- establishes and enforces regulations relating to workplace safety;
- carries out inspections; and
- monitors compliance with occupational health and safety standards.
In addition, the MPWH has established a Construction Safety Committee based on MPWH Decree 76/KPTS/M/2020. The duties of this committee include:
- monitoring and evaluating construction work that is considered to have high construction safety risks;
- conducting construction accident investigations; and
- providing suggestions, considerations and recommendations to the MPWH based on the monitoring and evaluation carried out.
This committee is empowered to:
- enter the construction site;
- request information from related parties;
- request data relating to the committee’s duties; and
- coordinate with parties in relation to construction safety.
In addition, the Social Security Agency for Employment pays compensation in the event of accidents and work-related sickness.
Under Indonesian law, special attention is given to the protection of workers, especially in industries with high hazard potential, including construction. The laws require all employers to take preventive measures to:
- mitigate accidents, fires and explosions; and
- maintain workers’ wellbeing.
The laws thus oblige large companies and companies whose operations have high hazard potential to implement occupational health and safety management systems in order to ensure compliance with health and safety standards.
