Construction Industry Faces Operational Cost Surge and Layoff Threat

Jakarta, CNBC Indonesia - The Secretary General 1 of the Central Executive Board of the Indonesian National Construction Implementers Association (Gapensi), Radinal Efendy, stated that the increase in diesel prices and the weakening of the rupiah exchange rate have driven up raw material prices, resulting in a surge in operational costs for the construction business. Construction entrepreneurs hope for government support in maintaining business continuity through strengthened governance regulations, but the very rapid increase in raw material prices on the ground means existing regulations are unable to keep pace. Gapensi noted that the construction sector, which absorbs 7 million workers, requires government support to maintain business continuity because it is linked to 13 other business sectors, so if pressure continues, the threat of layoffs could materialise.