Servio Maranda, Bangka – The Indonesian National Construction Contractors Association (Gapensi) states that the government's budget efficiency policy has had the greatest impact on the construction services sector in the region. Andi Rukman Nurdin Karumpa, the Chairperson of Gapensi, mentioned that the labor absorption in this sector has decreased drastically due to limited construction activity in nearly all regions of Indonesia.

He pointed out that the construction services are currently a sector with a fairly large labor absorption. "Due to budget efficiency policies, there are no construction service jobs throughout Indonesia. This also applies to the manufacturing industry," said Andi during the 4th Regional Deliberation (Musda) of Gapensi in Bangka Belitung in Sungailiat, Bangka Regency, on Wednesday, May 21, 2025.

He emphasized that the construction sector should not stop because it is still necessary for developing important facilities such as schools, community health centers, irrigation, roads, bridges, and repairing inadequate buildings. "Government support through state and regional budgets is needed to accelerate development," he said.

Andi is also optimistic that this condition is temporary. He believes the budget efficiency policy will soon end, and the construction services sector can revive. He added that the Gapensi leadership in various regions, including Bangka Belitung, is still running well and is expected to become a driving force when the situation improves.

The Vice Governor of Bangka Belitung, Hellyana, expressed her commitment to supporting the construction sector in order to increase job opportunities and regional economic growth. "We continue to encourage the development sector and hope to collaborate with Gapensi to create the optimal development plan. We hope to meet with the new leadership soon," she said.

Source: https://en.tempo.co/read/2010120/indonesias-budget-efficiency-slow-regional-construction-project