Eyeing Construction Projects Ahead of Leadership Transition

Approaching the end of the Advanced Indonesia Cabinet government in 2024, many service providers in the construction sector – both consultants and contractors – are wondering about job opportunities from Government projects.

The government itself has instructed that all infrastructure development must be completed by 2024, during the government transition period.

It is true that we need to move quickly if we want all infrastructure development to be completed before the end of the government’s term of office, which means that we need more implementing roles in the construction sector.

Director General of Construction Development at the Ministry of Public Works and Public Housing (PUPR) Rachman Arief Dienaputra explained that the program that must be completed by 2024 according to the President’s direction is work on the rehabilitation of markets, schools, flats, regional roads, sanitation and drinking water.

In fact, this is true, several infrastructure projects are part of the multi-year budget which is designed to be completed in 2024, except for long-term projects such as dams and the Indonesian Capital City (IKN).

Exceptions are also aimed at multi-year infrastructure development whose contracts only start in December 2023, such as the construction of the Cibeet, Cijuray, Karangnongko and Pelosika dams.

A budget to realize projects that must be completed by 2024 has also been prepared, with a value of IDR 147.37 trillion for goods expenditure and capital expenditure for single year and multiyear budgets.

The work includes water resources worth IDR 47.69 trillion related to the 26 unit dam project, 7 unit embung, 4,000 hectare irrigation network, 38,000 hectare irrigation network rehabilitation, raw water availability of 2.5 cubic meters per second, 58.6 kilometers of flood control buildings , and beach security.

Meanwhile, Bina Marga has a total budget of IDR 55.44 trillion, which includes the construction of 50.82 kilometers of toll roads, the construction of 296.71 kilometers of new roads, the construction of 4,796.21 meters of bridges, and the construction of 2,231.09 meters of flyover/underpass.

The budget for Cipta Karya is IDR 32.96 trillion, including a drinking water supply system (SPAM) of 3,105 per second, handling strategic areas and slum areas of 327 hectares, waste water systems serving 15,550 heads of families, solid waste systems serving 114,310 heads of families, development of building management of 37,880 meters. square footage, and construction and rehabilitation of educational, sports and market infrastructure and facilities of 564 units.

Then, for the housing sector, the prepared budget is IDR 9.26 trillion, which includes the construction of 5,479 units of flats, 589 units of special houses, 55,046 units of self-supporting houses, and the construction of 17,776 units of public housing facilities.

Of course, this will create job opportunities, especially for providers of consulting and construction services ahead of the change of government in 2024.

In this way, questions from consultant and construction service providers regarding the certainty of construction projects during the transition period have been answered.

The presentation of data from the Ministry of PUPR is certainly a breath of fresh air for service providers in the construction sector.

The program that can also be participated in in 2024 is related to operation, maintenance, optimization and rehabilitation (OPOR) work which is periodically tendered for all projects in the Ministry.

IKN

Not only infrastructure projects throughout Indonesia, budget allocations (APBN) are also prepared for the development of the Indonesian Capital City (IKN)
in 2024.

The government allocates the ABPN budget purely or through government and business entity cooperation (KPBU) in this IKN project.

For the pure APBN alone, the allocation for water resources is IDR 1.58 trillion, which includes flood control, handling the Sepaku River floods, arranging the Sepaku Dam, as well as building embungs and improving river watersheds.
(watershed).

Then for Bina Marga with a total value of IDR 16.67 trillion, it includes the construction of access roads and feeder roads, toll roads and the construction of a VVIP airport.

For Cipta Karya IDR 11.44 trillion, which includes drinking water supply (IPA) installations and supporting buildings, construction of a number of palace and ministry buildings, along with facilities and infrastructure.

Meanwhile, for housing, IDR 5.76 trillion is intended for the construction of landed houses for ministerial positions, and flats for state civil servants and defense and security personnel.

To accelerate infrastructure work, the PUPR Ministry has an Industry 4.0-based application that is easy for service providers to follow.

However, to realize large-scale infrastructure development, the challenges faced are also large, such as the need for experts in the technical field must also be greater.

Especially for construction consultant service providers based on their experience in the tender process, many had to be abandoned because their experts were working on two different packages.

With the information technology system currently being built by the PUPR Ministry,

It will be easy for consultant service providers to place their experts whether they have been used or not in the project being offered.

The facts show that there are not many experts in the engineering field in Indonesia, with a ratio of 5,300 per million. Compare this with Korea’s 25,000 per million and the US’s 20,000 per million, even Vietnam’s 9,000 per million.

To realize construction work in 2024, the Ministry of PUPR is collaborating across sectors, namely academics to improve human resources, associations as member advisors, and the construction industry regarding technology, standardization of materials and equipment, and products.

Especially for consultants, PUPR Minister Basuki Hadimuljono asked that work in 2024 be supervised more professionally. There are three things that are the focus of attention, namely work quality, aesthetics and environmental sustainability.

In his statement, the Minister of PUPR said that he would not hesitate to dismantle projects that were already underway if these three things did not comply with what had been planned.

Details

The question is, after 2024, with the change of leadership, whether the infrastructure program currently underway can continue.

This relay in infrastructure development should continue to roll out to encourage the economy. Previous experience of a number of projects being stalled due to not being continued by the next government would only create waste in the economic sector.