"We predict that the construction market will grow by 15 percent and reach Rp400 trillion," General Chairman of Gapensi Soeharsojo said here on Monday.
After attending Gapensi National Meeting 2013 in Jakarta, he noted that the prediction was based on the growth rate of the Indonesian economy and the increase in the nation`s infrastructure needs.
"In 2012, our national capital for construction was Rp360 trillion, whereas in 2013, if the current growth continues, it will reach Rp400 trillion," Soeharsojo pointed out.
Therefore, he urged all stakeholders of the construction market to "accelerate their construction projects in line with public infrastructure and economic growth requirements".
"This will be a great cake that can last for several years ahead," Soeharsojo said.
"Construction businessmen have been facing challenges in the supply chain, which is integrated with the national supplier," he noted.
"The small-, medium- and large-scale builders are not integrated well enough in the supply chain and do not collaborate enough for equitable distribution of profits," Soeharsojo said.
Therefore, he stated, almost 85 percent the construction market share was held by the large-scale builders, who account for only 13 percent of the total 182,800 builders in the construction industry.
"Meanwhile, small-scale builders - 87 percent of whom are Gapensi members - fight hard to have a share of the remaining 15 percent of the pie," Soeharsojo continued.
"In the future, large-scale builders should only get large-scale projects, while medium-scale builders should focus on specialized contracts, and small-scale builders should work on a limited contract basis," Soeharsojo explained.
"Ideally, the large contractor should become the chief who connects the medium- and small-scale builders, in order to create an integrated construction supply chain," he pointed out.
That way, Soeharsojo said, domestic companies could compete with foreign builders.
"Hence, we need full support from the government and all members of Gapensi to create a perfect synergy," he added.
(A060/KR-BSR/H-YH)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
