Construction activity: 2022 project tenders start
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Pekerjaan Konstruksi: Tender Proyek 2022 Dimulai
19 October 2021
By: Peni Widarti
Bisnis, Surabaya – The construction sector in East Java Province is receiving a breath of fresh air as the government has started the tender several next year’s projects worth Rp2.37 trillion. Construction players hope that the projects can be realised on time.
The Public Works and Public Housing (PUPR) Ministry through the East Java Construction Services Implementation Selection Centre (BP2JK) has conducted early selections for 191 tender packages in fiscal year 2022 in East Java worth Rp2.37 trillion.
Construction Development Directorate General Secretary of the PUPR Ministry, Dewi Chomistriana, said that the ministry prepared Rp100.5 trillion for construction in 2022.
“Regarding construction next year in East Java, there are 191 tender packages worth Rp2.37 trillion. The value of these tender packages can increase as they only went through the first identification,” he said after the opening of the coordination meeting on tender implementation and early selections in East Java on Monday (18/10).
According to him, the first stage of the tenders is set to commence in January 2022 that will tender 40% of the packages. Next, the second stage will tender 30% of the packages, and the third stage will tender the remaining 30% of the packages.
“So, the tender process is divided into three stages as there are several packages that need a long time. Early selections are one of the ways to accelerate the absorption of next year’s budget,” he said.
Meanwhile, PUPR Ministry budget absorption until October 2021 has surpassed 60%, and it is set to be absorbed by 97% by December 2021.
Dewi added that, to prevent fraud in the cargo/services provision process and to improve human resources integrity, the PUPR Ministry was establishing an internal compliance unit (UKI) in each organisation and agency.
“This is conducted to implement supervision and control to prevent fraud during construction from planning, procurement, to commencement,” he added.
Surabaya Region IV Construction Services Centre Head, Edi Irwanto, added that tender packages this year in East Java were national strategic projects, such as roads, water resources, as well settlements and housing.
The tenders are also stated in Presidential Regulation Number 80 of 2019 on Economic Development Acceleration in Gresik - Bangkalan - Mojokerto - Surabaya - Sidoarjo - Lamongan Area, Bromo - Tengger - Semeru Area, as well as Selingkar Wilis and Southern Highway Area.
“For the first stage of the tender, there will be more highway and water resources projects, such as in the area near Brantas River,” he stated.
On time
The East Java Indonesian Construction Project Association (Aproki) reckoned that early selections for the project tenders were a breath of fresh air for players to boost next year’s construction performance.
East Java Aproki Chairperson, Aslakhul Umam, said that the PUPR Ministry had prepared to carry out construction projects in 2022 by accelerating budget absorption.
“This is surely a breath of fresh air for construction players who will participate in the tenders, which include re-tenders and new tenders. Moreover, players have also started to conduct planning and budgeting,” he said to Bisnis on Monday (18/10).
According to Umam, players hope that the government’s plan to fund next year’s construction projects can be implemented on time.
“We hope that it will be different from last year where we had conducted planning and budgeting, but suddenly there was a pandemic. We hope that funds from the state budget or the regional budget can be realised, and hopefully there will not be another pandemic,” he said.
Umam said that construction players had predicted that the performance of the construction sector until the end of this year could grow 5% as the Covid-19 pandemic was increasingly under control.
“The decline in Covid-19 cases in East Java will boost various economic sectors, including construction. This is also in line with the government’s plan to continuously boost vaccinations,” he added.
With the decline in Covid-19 cases in East Java and the acceleration of 2022 project tenders, Umam predicts that the construction sector’s performance will improve next year by around 5% to 7%.
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