JAKARTA - The Ministry of Public Works (PU) is making anticipatory efforts to mitigate the impact of the weakening rupiah on the prices of construction materials for national strategic projects that are being worked on.
Minister of Public Works (PU) Dody Hanggodo said that his party was still waiting for the direction of the Government Procurement Policy Agency (LKPP) before taking a policy regarding the weakening of the rupiah.
"Regarding the adjustment of prices, in fact, this policy has been issued by the Government Procurement Policy Agency (LKPP) in 2022, at that time there was an escalation in the price of fuel oil and/or asphalt and we have coordinated with the LKPP regarding this matter," said Dody in a Working Meeting (Raker) with Commission V of the Indonesian House of Representatives at the Parliament Complex, Senayan, Jakarta, Tuesday, June 2.
His party has also coordinated with the Directorate General of Construction together with associations and also summarized the inputs from associations and the Ministry of PU.
The Directorate General of Construction has also conveyed these inputs to the LKPP. Later, the LKPP will issue a recommendation in the form of a circular letter.
"We have coordinated with several related associations represented by the Director General of Construction and we have submitted our proposals. So, we are waiting for directions from the LKPP," he said.
However, Dody said, if LKPP does not provide further instructions, his party will use the old policy as during the COVID-19 pandemic, so as not to hinder the development of projects that are being worked on.
"However, if we do not receive further instructions, we will use the old policy, because we also do not want any development progress to be hampered," he concluded.
Meanwhile, in 2022, LKPP issued Circular Letter Number 16 of 2022 to the then Ministry of Public Works and Housing (PUPR) regarding the impact of the increase in fuel and other commodities on infrastructure development.
In the circular, LKPP provides guidelines for the Commitment Maker Officer (PPK) to adjust the price and value of contracts on works that are highly dependent on the use of fuel and asphalt.
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