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Jakarta Post

[ANALYSIS] Omnibus law impacts construction sector

  • Mamay Sukaesih

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, October 20, 2020   /  09:15 pm
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President Joko (Presidential Secretariat/Ibrahim)

We expect the Job Creation Law to have a positive impact on construction. There are five points in the omnibus law that serve as a catalyst for the industry, especially for infrastructure development. They include accelerating the land acquisition process, establishing a land bank, establishing a sovereign wealth fund (SWF), facilitating national strategic projects and easing licensing and investment in the construction service sector. Infrastructure development in Indonesia faces some challenges. According to data from the Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP), the key challenges in national strategic projects are land acquisition (40 percent of total case projects), the construction process (23 percent), financing (18 percent), planning and preparation (11 percent) and licensing (8 percent).   The government would accelerate the land...