Public Works: Infrastructure Development Unaffected by Geopolitical Tensions

Jakarta (ANTARA) - The Minister of Public Works (PU), Dody Hanggodo, revealed that infrastructure development has not yet been affected by current global geopolitical tensions. “As of this moment, development remains unaffected. Regarding price escalation, we are already coordinating with the Government Goods/Services Procurement Agency (LKPP),” Dody stated in Jakarta on Tuesday.

Regarding the escalation of material prices caused by the rising US dollar exchange rate and global oil prices due to ongoing geopolitical tensions, the Ministry of Public Works has discussed the matter internally and held discussions with several associations. The Ministry has summarised all feedback, which has been submitted to the LKPP via the Directorate General of Construction Development.

The Ministry of Public Works is currently awaiting further direction from the LKPP regarding this matter. Dody noted that price escalations occurred in 2022, meaning the current situation is not unprecedented. “Just like in 2022, this has happened before, so it is not a new phenomenon. We will certainly propose a budget adjustment, as we have done previously in 2022,” he said.

The Rupiah was recorded weakening by 54.50 points or 0.31 per cent to Rp17,859 per US dollar on Tuesday morning compared to the previous closing position of Rp17,805 per US dollar. Rully Nova, an analyst at Bank Woori Saudara, told ANTARA in Jakarta on Tuesday that the weakening of the Garuda currency is still driven by uncertainty regarding the resolution of the conflict between the US and Iran. According to him, this situation is driving the US dollar index back towards the psychological level of 100 while increasing expectations for rising global oil prices.