JAKARTA \u2014 Non-state-owned national contractors may secure a larger\nshare of government construction projects worth between Rp50 billion and\nRp100 billion. The Indonesian National Construction Contractors\nAssociation (Gapensi) says new regulations open up opportunities for\nprivate construction companies and regional businesses to compete for\ndevelopment projects.<\/p>\n
Gapensi chairman Andi Rukman N. Karumpa said the opportunity arose\nfollowing the issuance of Public Works Ministerial Regulation No.\u00a06\/2025\nand Government Procurement Policy Agency (LKPP) Regulation No.\u00a03\/2026.\nThe two rules are seen as giving national contractors, including\nconstruction micro, small and medium-sized enterprises (MSMEs), greater\nscope to compete.<\/p>\n
\u201cWhat is interesting is that projects in the Rp50 billion to Rp100\nbillion segment, which used to be carried out by state-owned\nenterprises, are now prioritised for national non-state-owned\ncompanies,\u201d Andi said in a written statement in Jakarta on Tuesday (13\nOctober 2026).<\/p>\n
Andi said dividing work into segments based on project value could\nenable fairer competition in line with companies\u2019 capabilities. The\npolicy also gives regional contractors the chance to win work suited to\ntheir qualifications.<\/p>\n
However, Gapensi warned that regulatory changes must be matched by\nthe availability of projects and budget support. Without the actual\ndelivery of project packages, opportunities for private contractors and\nMSMEs may not lead to increased business activity.<\/p>\n
Andi highlighted the importance of ensuring that regional transfers\nand infrastructure budgets are disbursed smoothly. The availability of\nfunding, he said, would determine whether small contractors in the\nregions could actually secure work.<\/p>\n
\u201cIf regional-transfer-funded packages are not held up, and\ninfrastructure funds are not reduced to zero again, we are confident\nthat programmes will genuinely be created for regional construction\nMSMEs in the Rp2 billion, Rp7.5 billion and Rp15 billion segments to\nprovide public services at the grassroots. People\u2019s purchasing power\nwill certainly rise, and economic growth will increase,\u201d Andi said.<\/p>\n
Construction projects in the regions could also stimulate economic\nactivity beyond the construction sector. They require workers, building\nmaterials and various supporting services, creating business\nopportunities for local communities.<\/p>\n
Gapensi also urged the government to apply project segmentation\nconsistently, particularly for projects that can be carried out by\nnational non-state-owned companies. Andi said he hoped the provisions\nwould be implemented in procurement, rather than existing only on\npaper.<\/p>\n
\u201cMoreover, the Rp100 billion classification must actually be\nimplemented, with projects carried out by national business operators,\u201d\nAndi said.<\/p>\n
Public Works Ministerial Regulation No.\u00a06\/2025 sets standards for\nbusiness activities, supervision and sanctions under risk-based business\nlicensing in the public works sector. Issued on 30 December 2025, it\nimplements Government Regulation No.\u00a028\/2025 and replaces Public Works\nand Housing Ministerial Regulation No.\u00a06\/2021.<\/p>\n
Under the regulation, construction business certification (SBU)\nqualifications are divided into five levels: Small 1, Small 2, Small 3,\nMedium and Large. The classifications are based on business capacity,\nincluding annual sales, and require specified net capital, certified\nworkers and equipment.<\/p>\n
Small 1 covers companies with annual sales of up to Rp2 billion;\nSmall 2, sales above Rp2 billion up to Rp7.5 billion; and Small 3, sales\nabove Rp7.5 billion up to Rp15 billion. Medium covers values above Rp15\nbillion up to Rp50 billion, while Large applies to values above Rp50\nbillion.<\/p>\n
LKPP Regulation No.\u00a03\/2026, issued on 22 September 2026, sets out\nguidelines for government procurement of goods and services through\nsuppliers. It replaces LKPP Regulation No.\u00a012\/2021 and its\namendments.<\/p>\n
The regulation provides for five supplier-selection methods:\ne-purchasing, direct procurement, direct appointment, quick tender, and\ntender or selection. It also prohibits lending company credentials to\nanother party and transferring all work to a third party.<\/p>\n
Gapensi said the prohibition is important to ensure that projects\nintended for small businesses are genuinely carried out by companies\nthat meet the requirements. The association hopes that project\nsegmentation and procurement oversight will widen business opportunities\nfor national contractors.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-rules-open-up-government-projects-to-regional-contractors-1791975056", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }