Habibie vows to help contractors

JAKARTA (JP): President B.J. Habibie said yesterday he was saddened by the fact that at least five million construction workers had lost their jobs this year due to the economic downturn.

Speaking to 300 members of the Indonesian Builders Association (GAPENSI) at the State Palace yesterday, the President pledged to raise down payments for government-financed construction projects to help reduce the financial burden of small and medium contractors.

"We do realize the difficulties faced by the construction companies," Habibie said before opening the association's three- day congress.

Congress participants applauded the President's speech. (picture above)

Agus G. Kartasasmita, the chairman of the 41,705-strong association, in his report to the President said the government could only contribute 15 percent of total investment from 23 percent formerly.

He acknowledged in the past most of his members were too dependent on the government projects, although it had begun to steadily change in the last few years due to the country's booming economy.

But these opportunities had dried up this year, he added.

"Meanwhile the private sector, which is expected to provide 77 percent of total national investment, cannot provide any construction project."

Early this month, Agus urged the government to allow its members to reschedule their debts with local banks because nearly all members were technically bankrupt.

"All of us have become bankrupt, especially if based on the new bankruptcy law," he said.

The President said yesterday the government would soon submit a construction service bill to the House of Representatives for ratification.

"The law is expected to be able to ensure healthy and fair competition, and with that we will be able to prevent collusive and corrupt practices in the construction sector," Habibie said. (prb)