Construction firms mull protection, liberalization<\/p>\n
Zakki P. Hakim
\nThe Jakarta Post\/Jimbaran, Bali<\/p>\n
Local construction firms are seeking a certification system and
\nother barriers to entry to regulate the industry amid tight
\ncompetition and liberalization.<\/p>\n
The National Construction Service Development Board (CSDB)
\nconveyed its members' concerns during the two-day 11th
\nAsiaConstruct Conference here on Friday.<\/p>\n
\"Ideally, there should be a balance between foreign and local
\nconstruction service providers, be it the small or big players.
\nBut to achieve that, we need an adequate level of entry barriers
\nto ensure fair competition,\" Hari G. Soeparto, the team leader of
\nCSDB's Indonesian Construction Industry Development Team, said.<\/p>\n
Hari said local firms were not against healthy competition,
\nwhich would encourage creativity and innovation in the industry.<\/p>\n
Vice President Jusuf Kalla, who opened the two-day event, said
\nto improve their competitiveness, local players needed to improve
\nefficiencies by lowering their prices, reducing delivery times,
\nincreasing capabilities and building synergies with others.<\/p>\n
\"I have been working in the construction sector for almost 30
\nyears, so I know the business very well,\" said Kalla, who was a
\nbusinessman before becoming the Vice President.<\/p>\n
CSDB chairman Sulistijo Sidarto Muljo said the relatively
\nstable macroeconomic conditions recently had led to an increase
\nin construction activities. Local players were hopeful that the
\ngovernment's determination in prioritizing infrastructure
\nprojects across the country would boost the sector further,
\nSulistijo said.<\/p>\n
CSDB vice chairman Suntana S. Djatmika said governments in the
\nregion could not hide from their commitments to liberalize the
\nsector, and standardization in the industry could, in fact, lift
\nbarriers between nations.<\/p>\n
Requirements of certification and proof of registration could
\nalso be applied here, Suntana said.<\/p>\n
\"Malaysia has done that. Users would require construction
\nfirms to show certain certificates provided by their trade
\nassociations.<\/p>\n
\"We will do that too, through our CSDB,\" he said.<\/p>\n
The value of construction work done in the 2004 financial year
\nhad increased by 7 percent from the previous year. As the Asian
\nmonetary crises hit the country, non-residential building fell in
\n1999 to Rp 3.9 trillion from Rp 6.7 trillion in the previous
\nyear, before steadily climbing to Rp 5.7 trillion in 2004.
\nResidential and non-residential building activity fell in 1999,
\nbut by 2004 it had recovered to be worth an estimated Rp 7.4
\ntrillion.<\/p>\n
Expenditure on roads, bridges, railway, airports, ports and
\nbus terminals, meanwhile, grew from Rp 4.1 trillion in 1998 to Rp
\n9.8 trillion in 2004.<\/p>\n
The annual AsiaConstruct Conference, which was first held in
\nJapan in 1993, now hosts industry players from Australia, Bhutan,
\nChina, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand,
\nthe Philippines, Singapore, South Korea, Sri Lanka, Thailand and
\nVietnam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/construction-firms-mull-protection-liberalization-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}