Overview Of Construction Service & Industry in...

by

Dr. Sudarto • Chairman of Indonesian Contractors Association (ICA)

• President of International Federation of Asian and Western Pacific Contractors Association (IFAWPCA)

Overview of Construction Services & Industry

in Indonesia

Presentation will cover:

Short brief about ICA

(Indonesian Contractors Association)

Capability of ICA members

Construction Condition in Indonesia

ICA – Indonesian Contractors Association

Established in 1973.

ICA members now has become one of

Indonesia main player in constructions

industry.

Currently ICA members are all big scale

contractors in Indonesia.

Vision:

ICA is to promote and encourages a highly

reliable, independent, productive,

accountable and competitive National

construction industry either in National or

International market.

Membership

Regular Members:

Private Companies, State-Owned Companies, and Foreign Companies that already have a legal entity in Indonesia

Associate Members:

Foreign Companies that have foreign legal entities and have representatives in Indonesia,

Companies that are not contractors who have relationships with contractors (specialist contractors),

Contractors Companies who do not meet the requirements of regular membership

69%

23%

8%

ICA’s Members

PrivateCompany

ForeignCompany

State Owned

International Organization Membership:

IFAWPCA (International Federation of Asian and Western Pacific Contractors Association).

IFAWPCA Members : Indonesia, Japan, Korea, Malaysia, Maldives, Nepal, New Zealand, Philippine, Singapore, Sri Lanka, Thailand, Australia, Bangladesh, Taiwan (China), Hong Kong, India.

ACF (ASEAN Construction Federation).

ACF Members : Indonesia, Malaysia, Singapore, Thailand, Philippine, Vietnamese and Cambodia.

Capability of ICA’s Member

Some of ICA members not only working as

contractors but also as:

Investors, especially for infrastructure

projects (electricity, toll road, and drinking

water) through PPP program, and;

as Direct investment for commercial

buildings such as, office tower, apartment,

hotel, and properties (real estate).

ICA members also have partnerships

experience with international construction

companies to do construction project for

either national projects or overseas projects.

There are 15 Top Indonesian Constructors that

recommended to work together with investors to do

construction in Indonesia as:

Partner for investment

Join venture contractor or join operation

Contractor

Recommended Partnership

No Companies Sales 2011

(in Million USD) Sales 2012

(in Million USD)

1 PT WIJAYA KARYA (Persero) Tbk 976.6 1234.2

2 PT WASKITA KARYA(Persero) Tbk 799.4 917.5

3 PT PP (Persero) Tbk 620.0 800.0

4 PT ADHI KARYA (Persero) Tbk 735.7 794.5

5 PT HUTAMA KARYA (Persero) 375.2 524.8

6 PT TOTAL BANGUN PERSADA Tbk 390.0 430.0

7 PT JAYA KONSTRUKSI MANGGALA PRATAMA, Tbk 353.0 412.0

8 PT MULTI STRUCTURE 217.0 260.0

9 PT NUSA RAYA CIPTA 173.8 210.9

10 PT BRANTAS ABIPRAYA (Persero) 124.7 171.7

11 PT BANGUN CIPTA KONTRAKTOR 101.1 170.0

12 PT NINDYA KARYA (Persero) 94.2 167.9

13 PT NUSA KONSTRUKSI ENJINIRING 120.8 126.7

14 PT WIJAYA KUSUMA CONTRACTORS 83.8 116.3

15 PT TATAMULIA NUSANTARA INDAH < 100 < 110

LIST OF THE TOP 15 INDONESIAN CONTRACTORS

State owned company, PT. Wijaya Karya Tbk. (WIKA)

Private company, PT. Total Bangun Perkasa Tbk.

The above companies are publicly listed on the Jakarta

Stock Exchange.

Capability Example From 15 Top Contractor Indonesia:

An example to illustrate the capability of the companies are as follows:

PT. Wijaya Karya Tbk. - Wika

• Received accreditation from International Standard Organization : ISO 9001 : 2008 (2011) OHSAS 18001 : 2007 (2012) ISO 14001 : 2004 (2013)

• Established in 1971. A Public company since July 2006

• Indonesia’s largest building construction company, known for integrity, respect, fair dealing, good quality, excellent customer service

• Focus on premium high-rise and commercial buildings, with experiences in Design & Build Services

• Corporate Founder of Green Building Council Indonesia

PT TOTAL BANGUN PERSADA Tbk “Pride & Excellent in Construction”

CENTRAL PARK, JAKARTA

Construction of Mall , Office, Apartment & Pullman Hotel

Total Gross Floor Area (GFA) = 675,000 SQM

Year of Construction : 2007 - 2010

PORTFOLIO – MIXED USES

REGATTA, JAKARTA

Construction of Apartment “THE REGATTA”

Total Gross Floor Area (GFA) = 126.327 SQM

Year of Construction : 2006 - 2008

PORTFOLIO – CONDOMINIUM

Construction of NEW AUSTRALIAN EMBASSY COMPOUND, JAKARTA

Total Gross Floor Area (GFA) = 48,000 SQM

Year of Construction : 2012 - 2015 (LEIGHTON - TOTAL J.O.)

ON-GOING PROJECT

AUSTRALIAN EMBASSY

Construction of INDONESIA INTERNATIONAL EXPO – BSD CITY

Total Gross Floor Area (GFA) = 185,600 SQM

Year of Construction : 2012-2014

INDONESIA INTERNATIONAL EXPO

ON-GOING PROJECT

Construction Condition in Indonesia

Construction sector contribution to GDP

Construction Market Value

in Billion US$

0

5

10

15

20

25

30

35

40

45

2011 2012 2013

Human Resources

As a country with large number of productive

age, Indonesia has many engineers,

architects, interior designers, landscapers,

and other professionals support. We also

have specialist contractors such as,

mechanic electrical, substructure and others.

Materials Support

Materials such as cement, steel bar, concrete

pile, glass, asphalt are available from local

production and some import. The supply is

increasing to support the construction growth.

Cement Capacity

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017 2018

In million ton

Major Materials Supplies in 2012

No Material Amount Supply

1 Steel 18.9 million ton

2 Asphalt 890 thousand ton

Note: the all above materials should be increase as per demand. It

predicted for significant increment.

Machine Support

Heavy equipment such as cranes, tractors,

bulldozers, concrete pumps, excavators, etc.

are available with various brand selection.

Many overseas banks such as:

Deutsche Bank,

Bank of Tokyo;

ANZ,

The Bank of China,

Commonwealth Bank,

Citibank,

HSBC,

UOB,

etc. are opening their branch in Indonesia.

Financial Support

“We open up greater opportunities and invite you to

come to invest in Indonesia, where you can find a lot

of opportunity to explore construction industry

especially infrastructure as well as commercial project.

Please do not hesitate to contact ICA for further

Information..”

Contact Address:

ICA – Indonesian Contractors Association

Wijaya Graha Puri Blok D-1

Jl. Darmawangsa Raya No. 2 Jakarta

Phone: +62 21 7200794, 72790672

Fax: +62 21 7206805

Website: www.aki.or.id

Email: akinet@aki.or.id