After having experience a decline in
infrastructure development, especially in the field of industry production
service and concrete and asphalt construction, in 2016 entrepreneurs expect the
construction sector that support infrastructure will bounce back. After the
decline that slowed 10 – 20 percent during the first half of this year, in the
second half of this year the development of the construction sector will
recover with growth of round 7 to 8 percent. This statement was made by General
Secretary of the Indonesia Asphalt and Concrete Association (AABI), Benny
Djutrisno, in Jakarta,
Djutrisno
who told about his experience in participation in Bauma 2013, the construction and
mining exhibition in Munich, Germany, said that until the next years,
infrastructure sector in Indonesia will become an icon of development.
Therefore, although in recent month the economic slowdown is also impacting the
weakening power and development budget having not been absorbed optimally, his
party believes that in October/November the arrangement of tender for some big
projects will be started, whose realization started for the 2016 fiscal year.
“With
the groundbreaking of some big projects which will start a few months ahead, it
is expected that early 2016 will be a beginning of the movement of the one
year, as the year of construction. It means that next year will no longer be a
year of tender, but of construction work. We predict that in the next 5 to 5
years, the infrastructure sector will become an icon of Indonesia’s
development. We also see the potential of the use of a number of raw materials
that can be recycled, such as for cement and concrete, so that the ultimate
impact it to increase raw material efficiency, he said.
The
efficient use of raw materials makes the asphalt and concrete industry sector
more environmentally friendly. We see that such recycling system has been
available in Bauma, so that it is one of the reason we relearn a similar
technology in similar exhibitions, one of which will be held in Germany in
2016. Raw materials that have been recycled can still be applied to the needs
for the use of facilities that do not require major quality specifications, or
lower level of needs, “said Djutrisno.
Admittedly
there is still asphalt raw material that has to be imported, such as mixture of
asphalt mixing plant, and most of the heavy equipment has to be imported plant,
and most of the heavy equipment has to be imported. But gradually, the industry
began to substitute the use of imported raw materials with local raw materials,
such as the use of equipment imported separately, have started to be assembled
domestically.
This
step is an effort to minimize the impact of increasing depreciation of the
rupiah against the US dollar. Moreover, the government has issued regulations
that require the use of transactions that have been conducted in foreign
currency denomination into the rupiah, in order reduce pressure on the
Indonesian currency, he added.
Potential of Construction Market Value
Continues to Increase
In
the same occasion, the Secretary General of Construction Development of the
Ministry of Public Works and Public Housing, Panani Kesai, suggests that the
potential of construction marked value continued to rise, and this year it is
predicted to reach IDR 1,000 trillion, this is in line with the need for
investment in infrastructure sector for highway construction, railway, urban
and marine transportation. Additionally, there are other needs, including the
development of electricity sector, water resources, and public housing.
Meanwhile,
based on data from Central statistics Agency (BPS) in 2013, the capacity of the
national construction resources show that the number of construction workers in
Indonesia reached 6.9 million workers. Of the construction workforce, according
to data from the Institute for Constructions worker in Indonesia who are
certified experts is 64,578 workers and 101,669 certified skilled workers.
Therefore,
with the continued rise in construction market capitalization value in
Indonesia, in line with infrastructure development plan that has been outlined,
such as planned construction of new reservoirs and hydropower plant,
construction of oil refineries; broadband range; low-cost rental apartment blocks
(rusunawa) development; management of clean water and communal waste water
system; and 1000-km highway construction plan of Jokowi, the government has set
additional budget for infrastructure financing based on strategic issued in
2015.
There
is also allocation of needs for construction purposes in the country, both for
construction steel, asphalt and heavy equipment. The Government has set a
policy for project construction work worth over IDR 200 billion, is required to
have its own heavy equipment, or using a leasing system. Because if it does not
have middle of the construction work, the project will stall, due to lack
equipment whose lease has expired.
In
the same occasion, deputy Managing Directors of VDMA for Economics and
Statistic, who supervises the Trade Fair Markets Asia and Australia, Klaus
Stockman, argued that mining potential in Indonesia is quite large. even it is
estimated that every year Indonesia imported mining equipment worth USD 49 million. that is why the
Indonesia business need to look at the potential of technological development
in the utilization of mining equipment and heavy equipment in the exhibition
which is planned to be held from April
11 to 17 in Munich, Germany. (E)
Business New - September 16, 2015
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