Gapensi: Boundary of Project Rp100 Billion, Minimize Inequality and Equity

By : Ridwan And Aldi Firhand. A | Tuesday, January 16 2018 - 22:49 IWST

Secretary General of Gapensi, Andi Rukman (Foto Dina)
Secretary General of Gapensi, Andi Rukman (Foto Dina)

INDUSTRY.co.id - Jakarta - Indonesia Construction Contractor Association (Gapensi) said that the limitation of the formulation of large construction not to work on the project to Rp100 billion and below should be supported by all parties. Because the gap can reduce the gap and equity.

"This is very positive to overcome the gap between large and small contractors and the central and regional gaps," said Chairman Unum BPP Gapensi, Iskandar Z. Hartawi in Jakarta (15/1/2018).

He said the big construction companies are currently not many. However, he controls as much as 87% of the market share of construction. Local and small contractors are only 6%.

"In addition to the gap between large and small contractors, there is also a gap of contractors of State-Owned Enterprises (BUMN) and non-SOEs," he explained.

Furthermore, he said, the rising ceiling value of government projects that can not be worked on large-scale companies can also help government efforts to reduce the economic gap between regions.

"That's because the average small and medium-sized construction companies are based in the regions," Hartawi said.

Up to now, the government through the Minister of PUPR Regulation No. 3 / PRT / M / 2015 on Third Amendment to Regulation of Minister of PUPR Number 07 / PRT / M / 2011 on Standards and Guidelines on Procurement of Construction Works and Consulting Services has stipulated that the construction work package with value in over Rp2.50 billion to Rp50 billion is only allowed for construction executives with medium business qualifications.

At the instigation of Gapensi, the government then opened the opportunity for small and medium-sized private sector to work on projects worth less than Rp100 billion. Last year, from 11,910 packages of the Ministry of PUPR with a total project value of Rp81.70 trillion, the portion of projects worth more than Rp100 billion of 24.41%.

While for the project Rp50-100 billion of 17.61%. Furthermore, for projects worth Rp5-50 billion of 44.17%, and projects Rp5 billion of 13.81%.

To avoid this gap, Hartawi continued, the partnership between small and medium-sized contractors with large entrepreneurs should be increased, in addition to limiting the value of projects for large businesses and SOEs.

"The implementation of the Minister's regulation on the prohibition of project implementation under Rp50 billion by SOEs and large companies succeeded in boosting the capacity of local contractor business actors, so it is time for local business actors to be given greater confidence to work on even bigger medium projects," Hartawi concluded.

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