Coronavirus sentiment: Infrastructure projects still running as usual
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia: Sentimen virus corona: Proyek infrastruktur masih normal
30 March 2020
By: Azizah Nur Alfi, Denis Riantiza, and Peni Widarti
Bisnis, Jakarta – Construction of infrastructure projects in various regions are still running normally amid the coronavirus outbreak.
East Java Provincial Government Regional Secretary and East Java Acceleration of Covid-19 Handling Taskforce Heru Tjahjoni made sure that several projects of the East Java Provincial Government were still running smoothly, despite the Covid-19 pandemic.
“No project is delayed, but there are budgets for business trips. We will cut that budget to be allocated to handle Covid-19 instead,” he explained on Sunday (29/3).
East Java Deputy Governor Emil Elestianto Dardak added that infrastructure projects, such as constructions or the river revitalisation in Jember, were carried out to protect citizens, so they could not be delayed.
“We still maintain infrastructure. There is a river in Jember that is being revitalised so that it will not cause floods. The project is continued to protect citizens, and it will have a positive multiplier effect on the construction sector in terms of economy,” he explained.
North Sumatra Head of Highways and Construction Development Effendy Pohan said that projects that were funded by the regional budget of North Sumatra were still running according to plan, despite budget cuts on several projects.
“[Projects that are] funded by the regional budget of North Sumatra are still running according to plan. However, there may be changes as we are still waiting for the policy that is going to be issued by the regional head,” he told Bisnis on Saturday (29/3).
This year, there are 84 infrastructure project packages in North Sumatra, including construction of roads and bridges, with a total value of around Rp500 billion to Rp600 billion.
Some of those projects are in tender, and they are expected to be completed by early May 2020. However, the coronavirus outbreak has caused tenders of several projects that are funded by the special allocation fund (DAK), worth Rp107 billion, to be stopped. “Around 5 to 6 packages that are funded by DAK, worth Rp107 billion, are cut.”
He made sure that the infrastructure project tenders would still be carried out. Moreover, the construction of Medan Inner Ring Road is still in the feasibility study stage, even though it was set to finish by February. Despite being delayed, the physical construction, that spans 30.97 km with an investment of Rp7 trillion, is still expected to commence this year.
Medan Inner Ring Road construction is planned to commence in March 2019, agreed on a memorandum of understanding signed among the provincial government, Medan Local Government, Deliserdang Regency Government, investors, PT Citra Marga Nusaphala Persada Tbk, and PT Adhi Karya. Funding for the feasibility study and the construction is provided by investors and the consortium.
Unaffected by coronavirus
Construction of several infrastructure projects in North Sulawesi are still ongoing amid the coronavirus or COVID-19 pandemic.
North Sulawesi Development Planning Board (Bappeda) Head Jenny Karouw said that, until now, construction of infrastructure projects had not been put on hold.
“All projects are currently running normally, in line with the budget. No project has been delayed or put on hold,” Jenny said to Bisnis on Friday (27/3).
Currently, there are several infrastructure projects of the government that are still being constructed in North Sulawesi, including Manado-Bitung toll road project and Kuwil Kawangkoan Dam. The physical construction of the projects are set to finish this year.
However, she does not deny that her agency is also calculating the probability of revisioning the plans due to the COVID-19 pandemic.
“We are anticipating changes. We are waiting for developments until next week, are there going to be instructions from the central government or directions from the governor,” she said.
