Contractors Ask For Adjustment to Asphalt Price
Monday, 11 December, 2006 | 15:57 WIB

TEMPO Interactive, Jakarta: The Indonesian Concrete & Asphalt Association (AABI) is pushing the government to adjust the asphalt price for annual contracts.

AABI’s deputy Secretary General, Trisno Ario Sutanto, said that according to the National Development Planning Agency (Bappenas) adjustments are only made on Multiply Year contracts.

However, due to crude oil price fluctuations, annual year contractors are also affected.

“They have suffered losses. What remains is each industry’s endurance,” said Trisno in Jakarta last weekend.

Losses has been suffered by many companies that signed working contracts before oil prices rose in June.

The companies that signed contracts after the oil price rise are not in trouble because they already knew about the price rise.

According to Benny Djutrisno, AABI’s Secretary General, AABI and several other contractor associations have asked for adjustment of the national road project price.

The request was met by Bappenas in September, “But so far the adjustment hasn’t been implemented by the Finance Department,” he said.

As a result, contractors are confused.

In order to accommodate fluctuating asphalt prices, AABI have asked the government to revise next year Government Regulation No. 29/2000 on Construction Service Providers and President Decision No.80/2003 on the Government Goods & Service Implementation Standards.

Rieka Rahadiana