National Construction Expenditure Reached IDR72 Trillion in 1st Quarter 2013

During the first quarter 2013, the expenditure in terms of national construction is estimated to reach IDR72 trillion or approximately 18 percent of the total national construction expenditure of IDR400 trillion. This was stated by the Chairman of Indonesia Contractors Association (AKI) Sudarto in Jakarta recently.
He continued, this absorption is predicted to increase, considering some infrastructure projects that have not run. “I think the national construction expenditure has touched 18 percent up to the end of the first quarter 2013, but this is still low,” he explained.
This year, national construction expenditure is estimated at IDR400 trillion, which increases by 20 percent, compare to the last year’s figure at IDR330 trillion and IDR250 trillion in 2011. This prediction of construction expenditure comes from the construction projects, which are funded by the State Budget (APBN) of IDR93 trillion, Local Budget (APBD) of IDR40 trillion, State-Owned Enterprises (BUMN)/ Local Government-Owned Enterprise (BUMD) of IDR97 trillion, and private of IDR170 trillion. “The figure coming from APBN is lower than the private’s fund indeed, but it is still required to trigger development,” Sudarto affirmed.
He added, the increasing figure of national construction expenditure since 2011 indicates the government’s commitment in infrastructure development as the economic activities support. “It is reflected in the APBN 2013, in which 11.76 percent of the IDR1,657.9 trillion is allocated for infrastructure,” he stated.
According to Sudarto, construction sector does become one of the economic growth drivers, as it is seen from the construction sector’s contribution of 8 percent of the Gross Domestic Product (PDB) in 2011, and 10 percent in 2012. Meanwhile, the contribution this year is estimated to reach 11-12 percent of the PDB.

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