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The Association of Indonesian National Construction Implementers (Gapensi) stated that the COVID-19 pandemic had an impact on increasing the burden on the contractor. It is because they need to adjust operations to predetermined standards. PUPR Minister allows contractors to stop their projects but the company should provide income to their workers.
How Pandemic Affecting the Business
The pandemic will have an impact on businesses including the contractor. One of which is that there are many SOPs that need to be improved. The contractor needs to adjust many procedures, for example updating the rules for using masks for employees. They also need to rearrange and applied health standards for the worker’s barracks. So if the barracks are not sufficient for use as in the pre-pandemic period, the contractor must pay additional costs to meet these various needs.
The construction service sector, as part of the economic sector, has felt a huge impact on the COVID-19 outbreak. Elements of construction implementation such as materials, workers, equipment, transportation, time, and mobility are directly related to the COVID-19 outbreak, which can cause uncertainty.
The fact is that a building construction project in a region has been neglected. It is because the materials and workers were transported from another region. When the pandemic is outbreaking, their transportation mobility was disrupted. It is because due to the implementation of the regional quarantine policy imposed by the leadership in that area.
Operating costs are still running, this is what makes the contractor’s burden even heavier amid the reduced number of projects offered by the government and the private sector. As a result, many contractors are starting to feel incapacitate and choose to vacuum or stop temporarily until conditions getting better.
PUPR Minister, Basuki Hadimuljono, has asked all contractors to guarantee the rights of construction workers. The fact is the construction company so overwhelming to pay salaries. So, the Minister will guarantee it is according to the contract.