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Local contractors want in on Prabowo’s big infrastructure projects
A construction industry association has expressed hope that the incoming Prabowo administration would look to reduce the dominance of state-owned construction firms and help revive the growth of regional contractors, which were often sidelined in major development projects under President Jokowi's infrastructure drive.
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Workers operate heavy equipment on Sept. 18, 2024 while building an access road to the main stadium as part of a new sports complex development in Deli Serdang regency, North Sumatra. (Antara/Nova Wahyudi)
T
he National Construction Contractors Association (Gapensi) has complained that regional contractors were rarely involved in the many big infrastructure projects under President Joko “Jokowi” Widodo’s development policy, due to the domination of state-owned enterprises (SOEs), hoping that this would change under Prabowo Subianto’s administration.
“The prevalent dominance of construction SOEs became a weapon that has killed the growth of local contractors. So the only option for local contractors is to become subcontractors which, at the end of the day, are not getting paid,” Gapensi secretary-general La Ode Saiful Akbar said, as quoted by Tempo.co on Thursday.
He also expressed hope that Prabowo would break the mold and bring in more private contractors for infrastructure projects.
La Ode noted that the 2025 state budget allocated Rp 400.3 trillion (US$25.8 billion) for infrastructure development in sectors such as education, health, connectivity, food and energy, as well as for the Nusantara Capital City project.
“Those developments are about even distribution [of development] in the regions, which could be an opportunity for the government to involve local contractors so that the wheels of the economy keep spinning,” he said, adding that involving regional players would increase the multiplier effect of infrastructure development.
While President Jokowi’s 10-year tenure had given rise to much new infrastructure, “disappointingly”, not many smaller private contractors had been involved, he continued.
“[More] local contractors could have been involved and given a chance, so their quality might improve,” La Ode said.
