Business · Companies · 10 hrs ago

Indonesia Gives National Private Contractors Priority on Some Projects

Indonesia Gives National Private Contractors Priority on Some Projects

Indonesia has introduced new rules for public construction projects through two regulations issued in 2025 and 2026.

The rules expand opportunities for local firms and small businesses by dividing construction work into categories based on company qualifications and project value.

Projects worth more than 15 billion rupiah and up to 50 billion rupiah are for medium-sized firms, while larger firms can handle projects above 50 billion rupiah.

National contractors outside state-owned companies are prioritized for projects worth 50 billion to 100 billion rupiah, according to GAPENSI chairman Andi Rukman N. Karumpa.

The rules also ban lending a company’s name to another firm so that small-business contracts are carried out by eligible businesses.

GAPENSI says the opportunities depend on funded projects being made available, including local projects for small firms.

The group is urging the government to apply the rules consistently and ensure budgets are available for construction work.

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What people are saying

Andi Rukman N. KarumpaGAPENSI chairman
The interesting thing is that in the Rp 50 billion to Rp 100 billion segment, which used to be handled by state-owned enterprises, priority is given to national non-state-owned businesses.
via Detik
If regional transfer-funded packages are not held back, and infrastructure funds are not zeroed out again, then we are confident that local construction MSMEs in the Rp 2 billion, Rp 7.5 billion and Rp 15 billion segments will truly be given programs for public services at the local level; people’s purchasing power will certainly rise, and economic growth will certainly increase.
via Detik