PUPR Ministry should mobilize construction sector to leverage economy

Jakarta President Joko Widodo (Jokowi) urged the Ministry of Public Works and Public Housing (PUPR) to mobilize the national construction sector to boost Indonesia’s economy this year.

“I would like to remind all ranks in the PUPR Ministry that this large budget must have a significant impact that can leverage our economy and revive the national construction sector,” the president stated at the Bogor Presidential Palace, Friday, during the signing of the Package Contract Tender/Early Selection of the PUPR Ministry for the 2021 Fiscal Year that was held virtually.

President Jokowi stated that in the 2021 state budget (APBN), the PUPR Ministry had been allotted the largest chunk of the budget, reaching Rp149.8 trillion.

“The re-movement of the construction sector not only provides job opportunities for construction sector workers but also moves the supply chain in the construction sector, the contracting sector, and has a broad multiplier effect for industries related to the construction sector,” the president remarked.

The head of state noted that the steel, iron, cement, and heavy equipment industries were involved in the movement in addition to the informal sector, such as food and beverage traders and house/boarding.

“I laud the efforts of the Ministry of PUPR that has since October 2020 accelerated the tender,” the president remarked.

President Jokowi noted that until January 15, 2021, a total of 209 construction procurement packages, worth Rp2.1 trillion, had completed the tender and inked the contract.

“The 982 packages, valued at Rp12.5 trillion, have been tendered and ready to be signed today and have already been carried out. I have urged the PUPR minister to accelerate it,” the head of state remarked.

The goal is that by the first quarter of 2021, all packages would have been tendered and contracts inked.

“This is important in order to drive our national economic growth. Once again the key is speed at work, especially during a pandemic such as this when scores of people have lost their jobs,” the head of state explained.

Jokowi stated that several anticipatory measures had been taken for speed in executing work, especially for labor-intensive projects, and also helped to reduce the burden on the community, especially through the provision of several jobs.

PUPR Minister Basuki Hadimuljono had stated in his report that since October 2020, the ministry had conducted early selection tenders for 3,175 packages, with a budget value of Rp38.6 trillion.

In January 2021, some 1,191 packages, worth Rp14.6 trillion, had been completed comprising 209 packages worth Rp2.1 trillion had completed tenders and contract signatures in December 2020; 982 packages worth Rp12.5 trillion had recently been signed; as many as 1984 packages, the contract worth Rp24 trillion for which will be signed in February 2021, and a contract of 1,553 procurement packages valued at Rp40 trillion will be inked in March 2021.

Source: Antara News

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