Construction Spending Reaches IDR130 Trillion

JAKARTA—the Indonesia Contractors Association noted up to November AKI’s construction spending reached IDR130 trillion.
The figure was equivalent to 86.66% of the AKI construction spending target this year which reached IDR150 trillion.

Head of Indonesia Contactors Association (AKI) Sudarto said, some of 65% come from SOE and private investors’ project. In addition SOE companies who contributed namely Pertamina, Pelindo, PLN and other large SOE companies.

While the rest of 35% were project funded by government trough state budget. According to Sudarto, slow target achievement was triggered by Budget auction process delayed.

Generally, most of Ministry’s budget absorption is low so the construction plans constrained. AKI predicted the construction spending may not reach the target of IDR150 trillion.

Because in the remaining one month, with a low absorption it is resulted the construction activity tend to low. However, he expected the target gap will not too big.

The projects generally related to infrastructure such as power plants construction, toll road, bridges and ports.

While, commercial sector which most contributed to the target such as housing constructions, offices and flats.

Therefore, he expected the government give full support to the national infrastructure development especially in finding solutions in constructions sector problems. (t08/tw)