{
    "success": true,
    "data": {
        "id": 1670206,
        "msgid": "construction-costs-surge-due-to-geopolitical-tensions-gapensi-urges-government-to-adjust-prices-1775829056",
        "date": "2026-04-10 19:47:23",
        "title": "Construction Costs Surge Due to Geopolitical Tensions, Gapensi Urges Government to Adjust Prices",
        "author": "",
        "source": "VIVA",
        "tags": "bisnis",
        "topic": "Infrastructure",
        "summary": "The Indonesian National Construction Contractors Association (Gapensi) has raised concerns over a significant rise in construction costs, driven by global geopolitical tensions that have increased energy prices, particularly industrial fuel, leading to a projected 3-8% hike between February and April 2026. Gapensi is calling on the government to implement price adjustments (escalations) for uncontracted projects to prevent substantial losses for contractors, as current reference prices are based on outdated conditions. Additionally, the association advocates for fairer tender processes, greater involvement of national private firms in large-scale projects, and an end to large-scale self-managed schemes that limit participation and create payment uncertainties, amid a noted decline in the number of construction businesses.",
        "content": "<p>The Indonesian National Construction Contractors Association\n(Gapensi) assesses that the global situation, which has impacted the\nrise in energy prices, particularly industrial fuel, has triggered a\nsignificant increase in construction costs over the past few months.<\/p>\n<p>Gapensi General Chairman Andi Rukman Nurdin Karumpa expressed concern\nover the pressures facing the national construction services sector, due\nto rising operational costs and dynamics in government project\nprocurement policies.<\/p>\n<p>\u201cIn the period from February to April 2026, we see that construction\ncosts could rise by 3% to 8%, and have the potential to increase even\nhigher if this situation continues,\u201d Andi said in his statement on\nFriday, 10 April 2026.<\/p>\n<p>He stated that the increase in industrial diesel prices, which is\ncurrently in the range of Rp 21,000\u2013Rp 23,000 per litre from the\nprevious Rp 18,000\u2013Rp 20,000 per litre, is also driving up the prices of\nmaterials such as asphalt, cement, and steel.<\/p>\n<p>In response to the situation, Gapensi has urged the government to\nimmediately carry out price adjustments (escalations) for projects that\nhave not yet been contracted.<\/p>\n<p>\u201cThis is considering that the reference prices used are still based\non the previous year\u2019s conditions,\u201d he said.<\/p>\n<p>In agreement, Gapensi General Secretary La Ode Safiul Akbar\nemphasised that without price adjustments, contractors could face\nsignificant losses.<\/p>\n<p>\u201cWe request that projects that have not been contracted be given room\nfor price adjustments so that business actors do not bear costs that are\nnot in line with the current real conditions,\u201d said La Ode.<\/p>\n<p>In addition, he also stressed the importance of equalising work\nopportunities for national construction business actors, particularly\nassociation members.<\/p>\n<p>Some of the main points conveyed by Gapensi include the\nfollowing:<\/p>\n<p>\u2022 Construction projects should be tendered openly, not through\nlarge-scale self-managed schemes<\/p>\n<p>\u2022 Large-value work packages are expected to involve national private\nentities, not just SOEs<\/p>\n<p>\u2022 Self-managed practices are assessed as potentially hindering\ncontractor participation and causing payment uncertainties<\/p>\n<p>\u201cGapensi reminds that the dominance of certain schemes can impact the\ndecline in the number of construction business actors, as reflected in\nthe national decline in membership numbers in recent years,\u201d he\nsaid.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/construction-costs-surge-due-to-geopolitical-tensions-gapensi-urges-government-to-adjust-prices-1775829056",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}