Private Contractors Demand Construction Banking

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  • REUTERS/Beawiharta

    REUTERS/Beawiharta

    TEMPO.CO, Jakarta – Indonesian Builders Association (Gapensi) chairman Iskandar Hartawi asked the government to help private construction services with capital by forming construction banking.

    “We’re hoping the government would initiate construction banking to provide swift, easy and cheap capital,” Iskandar said in Jakarta on Tuesday, December 9, 2014.

    According to Iskandar, construction companies are having a hard time to compete with other companies due to capital shortage and unclear regulations on construction services.

    In terms of regulations, Iskandar explained, construction companies were often faced with legal issues.

    “Gapensi needs the government to provide legal protection based on the Law on construction servces,” Iskandar added.

    Regulation improvement, Iskandar said, should be initiated before the implementation of the ASEAN Economic Community in 2015. In such a momentum, Iskandar claimed, construction services would have an important role in development.

    Gapensi held a national leader meeting today, which was attended by Vice President Jusuf Kalla, State-Owned Enterprises Minister Rini Soemarno and Public Works and People’s Housing Ministry Basuki Hadimujono. At the meeting, Gapensi signed a memorandum of understanding banning State-Owned Enterprises from running projects with a value of less than Rp30 billion.

    NURIMAN JAYABUANA