Building Construction Contracts

Nov 25th, 2008, in Business & Economy, by

Building Construction ContractsPurba on the quality levels of Indonesian construction methods, and building contracts in Dubai.

Indonesia Seeks Dubai Construction Work

Public Works Minister Pak Djoko Kirmanto and a number of construction businessmen will be visiting Dubai with a delegation of 40 to win construction projects in the Persian Gulf state.

We will try our best to construction market in the Middle East though Dubai because Dubai is the biggest financial center in the Middle East like Singapore in Asia.

Sumaryanto Widayatin, head of construction development affairs of the Ministry of Public Works, said that the Indonesian construction businesses were holding a 3 day expo in order to seize construction business opportunities, with the Dubai construction market estimated at US$20 billion - requiring both construction and maintenance skills.

Widayatin said that Dubai itself was known as one of the "big five" in the building business in the Middle East with excellent market potential but it was hard for Indonesian contractors to take part not because of competition but because of uncertainties in the payments.

Overseas, we don't know to whom the payments that are obtained should be charged. There must be certainties with regard to this. After all, we also need certainties in banking support because no supporting banks already available overseas

Indonesia was now preparing to set up a representative office in Dubai. He added: Antara

The problem is whether to open our own branch office or just to join with the Indonesian Embassy's attache.

Indonesia is a regional leader in such construction with highly advanced skills, knowledge and practical experience far outstripping any ASEAN member country despite clever Singaporean NatGeo marketing strategies, due to the highly complex geo-technical and seismic challenges building in one of the most active earthquake/subduction zones on the planet.
Japan, Holland, USA and Germany have long been highly valued technical and specialist skills educators to highly regarded indigenous Indonesian engineers.

Indigenous Indonesian contractors are not only proven entirely trustworthy and highly experienced, but well marketed against all major competitors on:

  • Absence of conflicting Western biased political agenda
  • Quality of construction and long experience in producing world's best standard materials
  • History of extreme intolerance toward building corruption- with death penalty applicable to most serious infractions resulting in loss of human life.
  • Huge experience in variety of modern projects
  • Highly rapid construction with superior construction quality
  • Excellent maintenance record
  • Proven high magnitude earthquake resistance
  • Cost benefit - higher priced than China or India - but quality is far superior and proven far more trustworthy- the building construction graft culture prevalent in many emerging markets (Turkey, China, India) is non existent and historically vigourously prosecuted with extreme resolve.
  • Superior constructions in terms of quality, finish, engineering, safety, longevity, redundancies and materials.

Despite numerous large quakes Indonesia has never suffered the tragic devastation as seen in Turkey, Szechuan, etc caused primarily by lax enforcement of building standards and rampant government corruption and skimping building materials. Similar concerns exist regarding India following the Kashmiri-Pakistani earthquake tragedy- where some contractors were Indian.

Indonesian construction standards are the strictest in the region bar none - standards are equal or exceed world's best practice and ISO standards, with historically highly intolerant government attitude to shoddy construction and "under-building".

Singapore, Malaysia and other regional tenderers are routinely excluded from Indonesian projects due to their inexperience at building earthquake resistant structures and concerns on an engineering culture dictated by profit at any cost- using most minimally expensive construction materials and methods.

Indonesian constructed buildings as a rule are "over-engineered": built up to standards and not down to price, and engineered to survive highest range Richter scale quake damage.

The moderate and modernist parts of the Middle East will be excellent strategic growth market far more suitable to Indonesia's strategic politico- economic goals as Singapore market has near peaked and predicted to follow a slow decline. Middle Eastern political goals are far more congruent to Indonesia's own interests and philosophy of nonaggression and non-alignment, contrast very favourably to the fawning neo Imperialist puppetry of Australia, Singapore and lesser extent Malaysia.

The IMF predicts Qatar will be the fastest growing economy of 2009.
The Middle East is running out of oil and has to diversify ASAP and with growing populations on marginal land - Indonesia is an excellent partner, highly suitable for Indonesian gas expertise and export contracts and for basic commodity and food export.

It is almost as if time has turned full circle for Indonesia to trade again with moderate Arabia.


42 Comments on “Building Construction Contracts”

  1. avatar Bas says:

    Bas, is it not reasonable that there’s a price differential? Quite apart from the ‘cultural thing’ in that is it reasonable to ask locals to pay to see what their ancestors potentially had a hand in building, we, typically, earn orders of magnitude more than the locals.

    Sorry but nor all “bules” living in Indonesia are $$$$ earning expats.
    And at Borobudur healthy working expats don’t pay the bule’s price since they have company paid KITAS. I have no salary in dollars or euros. I dont even have the right to work here. But I must pay everything higher than expats who don’t give a s*** about the country and locals. Sorry to think it is not fair. If you were in my shoes you would think the same.

    I find it particularly distasteful when I see bule, especially bule tourists, haggling in markets and such. And I find it disgusting when they crow about how much they managed to have ‘knocked-off’ the asking price.

    And I find it disgusting when prices are based on the color of your skin or the length of your nose. It’s pure discrimination and racism. What would you think if you lived in a country where whatever price is multiplied by 2 to 10 for you just because you look different? What kind of country is that? What kind of people are you? And you call yourself friendly?

    Bules are just seen as walking wallets. I cannot tolerate that.

    At Borobudur I payed local price.
    A more intelligent friend of mine who didn’t want to be racketed just take the “back door” for free. This is the good way to go with arrogant racists like PN and his pairs.

  2. avatar Purba Negoro says:

    Bas-
    it is called those with means pay according to their means. No matter how poor you may be at home- you are far wealthier than many Indonesians.
    So that means- you have the means to pay a proportion more than the native.

    Your nations profited handsomely from colonialism- and thus by extension you did too – so now is the era of a tiny payback.

    Do not be so naive to think when we Indonesians go to the West – we are not robbed blind either by governmental fees – including higher taxation rates.

    This is called – harsh reality. The easily duped outsider gets screwed- no matter which nation.

    Secondly Indonesia does not want low tier whites. Indonesia is not a backpacker nation – we officially hate backpackers and “sojourners” – they are parasites.
    We want those who can actually pay their way and be positive contributors.
    Less able families are also welcome.
    Females are also quite welcome – so long as they remember to act with the female decorum now so unfashionable now in the West and never found in Ostraya.

    Single males with marginal income fit the very worst demographic and are as unwanted as a case of the genital warts they commonly spread.

    So- if you have such issue with cheap admission fees- obviously you seem not a very good quality tourist and as for your cheapskate friend.

    Very simply- and for all single male bule:

    Keep you nose damn clean and your fool trap shut.
    Suck it up and take it like a man, not an Aussie.
    Or leave.
    We don’t need your pennies.
    Or your VD and bastard offspring to slack kneed peasants.
    If you want sluts and grinning officials- go to Thailand.

  3. avatar Geordie says:

    Bas, I did say in my post that it is quite common for ‘bule’ to pay over an above what locals have to in other countries.

    You seem to think that the colour of your skin and/or length of nose is what fixes the price whereas I tend to think its more about your passport. Number control is vital for the ongoing viability of a nation’s treasures and it’s common around the world, it’s wrong to say Indonesia or Indonesians are racist or (and I love this bit) unfriendly for adopting what is, it seems, global best practice.

    A more intelligent friend of mine who didn’t want to be racketed just take the “back door” for free. This is the good way to go with arrogant racists like PN and his pairs.

    So it’s okay for your friend to avoid the fee, isn’t he ripping someone off? How do you square that with the ire you seem to feel at being charged what you consider over the odds? How must a local feel when he/she witnesses something like that? Do you think this will endear your friend to them or is it more likely to perpetuate the stereotype of rapacious bule which, from the tone of your post, seems you have sympathy with and I quote: –

    ‘But I must pay everything higher than expats who don’t give a s*** about the country and locals.’

    You think that, just maybe, the locals may form a less than sympathetic opinion of us just because of actions like this? That’s hardly the action of an ‘enlightened tourist’ is it? And if a lot of people don’t pay the admission fee then the ones that do must bear the brunt of the selfishness of those that don’t; Borobudur, or anywhere else for that matter, won’t maintain themselves.

    It is true, my view of Indonesia and Indonesians is necessarily formed by my own experiences and I have been very, very fortunate to marry a beautiful Javanese woman from a family who manged to look beyond the stereotype and welcome me into their family. Now before you accuse Maami and Papi of just seeing my money let me disabuse you of that notion, they have no need of it, indeed Papi refused my offer of dowry and said to me, ‘look after my girl, treat her well and that’s all the dowry I need’.

    Regrettably I no longer work in Indonesia but when I left, my colleagues and bosses (all Javanese) threw me a huge going away party, lots of presents which was a bit embarrasing and, when we left to go to the Middle East, they even came to the airport to see us off. That was a bit of a shock, good-byes in Indonesia are really something from a bule’s perspective of not having experienced one before.

    I mention this because my experiences of Java, in particular, seem so far away from your own as to be a different country and people.

  4. avatar Geordie says:

    Bas said the following: –

    I dont even have the right to work here.

    Bas, none of us have the ‘right’ to work anywhere other than our home country. Typically, where ever I have worked it’s been based on the understanding that I would ensure succession of locals within a given period of time and for that, I have been allowed the priveledge of earning my crust in some beautiful places, not least of which is Indonesia.

    Is it not reasonable that a country looks after its own first?

  5. avatar Purba Negoro says:

    Geordie,
    precisely
    none of us have the ‘right to work” anywhere other than our home country.

    This is standard internationally applied law.

    Everywhere one requires some form of work permit- the clever Western “bribe scheme ” is to request non-refundable fees for bureaucratic decisions which have non predictable outcomes.

    If Western application rejected- the money is returned in full?
    Nonsensical!
    The fees are “absorbed”.

    For some permanent residency application subclasses Australia requests $AUD 100,000 to be held for somewhere between one and r three years invested in Australian State Bonds- the interest accrued lept by the State- and the lump sum entirely at sole the control of the State.

    From UK Council for International Student Affairs:
    Can I work while I study in the UK?

    Check what your passport sticker (entry clearance or residence permit) says. If you are in the UK with student immigration permission and your passport sticker says “Work (and any changes) must be authorised” or “Able to work as authorised by the Secretary of State”, you are allowed to work during your studies.

    If your passport sticker says “No work”, you must not work in the UK. This would be a breach of your immigration conditions, which is a criminal offence. If you are in the UK and you have entry clearance (a visa) that makes it clear you are here as a student but you have a “no work” condition, you can make an immigration application to change your condition to allow you to work. You should talk to your international student adviser about how to make such an application and how much it will cost. It is much cheaper and easier to ask for permission to work when you make your entry clearance application and to check your passport sticker before you travel to the UK.

    If you are in the UK as a student visitor, you cannot change your immigration conditions in the UK to allow you to work. You would have to return to the country where you usually live and make an entry clearance application as a student, and you would have to meet all the requirements of the student Immigration Rules.
    In the UK and Australian foreign university student cannot work more than maximum of 20 hours per week- strictly casual or part-time- with income tax on their pennies calculated at highest marginal rate- no tax exemptions or refund claims allowed.

    Can I work full-time?
    No. If you work more than 20 hours in any week in term-time (and you are not doing a work placement for your course or an internship), you are in breach of your immigration conditions, even if you work under 20 hours in other weeks

    Can I pay for my studies through work?

    No- usually, you must be able to pay your tuition fees and living costs without having to work in the UK.

    Can I claim benefits?

    No- if entry clearance or residence permit in your passport states that you are subject to the condition “No recourse to public funds”, you must not apply for tax credits. This would be a breach of your immigration conditions and a criminal offense.

    Universities frequently ban students from working more than 250 hours/year during doctoral studies

    So we see Indonesian Laws are identical to the UK and Australia- and hence the4 shrill claims of racism and bigotry are just hot air from an ignorant buffoon.

    Bas is yet another instance of a Westerner buffoon subjectively and arbitrarily applying ill conceived double standards.

    As always- facts easily disprove their cereal box derived knowledge.

  6. avatar enigmatic says:

    thank you antonius for speaking my mind.

  7. avatar ET says:

    Purba Negoro said

    Is the bule then paying for the widow’s child’s education?
    No – again the Javanese aristocrat – as always- even as we do to our Acehnese poor.
    IS bule organising NGO and charity to provide cottage industry to widows?
    NO- again we Javanese aristocrat.

    Maybe the NGO’s and bule volunteers were fed up coming to rescue after being harassed in Aceh by the Wilayatul Hisbah for wearing shorts that didn’t cover their knees while playing football in their spare time.
    Read the ICG reports.

    Why floating nuclear plant?
    Very simple- water is generally perfectly level and is a fluid- it is not effected by terrestrial seismic vibration & off coast of Irian tsunami is historically non existent.

    Purba, you have a penchant to talk out of the back of your neck and by acting assertively make everybody believe you’re an expert.
    Irian tsunami non existent? Let me quote the Cenderawasih Pos of 19/2/1996.

    Masyarakat Manokwari yang sedang istirahat siang sekitar pukul 15.00 WIT dikejutkan guncangan gempa bumi kurang lebih selama 4 menit. Satu setengah jam kemudian disusul dengan serangan gelombang pasang (tsunami) setinggi sekitar 5 meter menyapu seluruh pemukiman yang berada di sepanjang pantai kota Manokwari.
    Gelombang pasang datang dari laut lepas terseret masuk ke teluk Doreri sehingga menyapu daerah Angrem, Borobudur, Airkuki, Imbrairi dan Kampung Gaya Baru Wosi.
    Terutama yang paling parah daerah Angrem dan Borobudur. Sedikitnya 300 KK kehilangan tempat tinggal diseret gelombang tsunami yang memiliki kekuatan balik yang benar-benar dasyat, sehingga memporak porandakan benda yang ada di sekitar pantai.
    Begitu kuatnya gelombang pasang itu sebagian besar rumah di wilayah Borobudur ditarik gelombang hingga tengah laut atau mendekati pulau Mansinam, sekitar 5 km. Sebuah gereja Advent ikut runtuh diseret air laut yang kejadiannya. cukup singkat sekitar 30 menit.

    Now I bet you are going to tell me that the Cenderawasih Pos is owned by the Chinese.

  8. avatar ET says:

    @ Geordie

    I find it particularly distasteful when I see bule, especially bule tourists, haggling in markets and such.

    Is it permissible in England to ask a Pakistani 10 x the price of an item compared to a local bule?

    @ Bas

    And I find it disgusting when prices are based on the color of your skin or the length of your nose. It’s pure discrimination and racism. What would you think if you lived in a country where whatever price is multiplied by 2 to 10 for you just because you look different? What kind of country is that? What kind of people are you? And you call yourself friendly?

    In some European countries they sue you in court for this kind of discriminative and racist practices.

    @ PN

    it is called those with means pay according to their means.

    Does this perhaps also apply to locals of means?

    Your nations profited handsomely from colonialism- and thus by extension you did too – so now is the era of a tiny payback.

    I especially like the “and by extension you did too”. Here the monkey comes out of the sleeve. And what an ugly beast it is.
    Purba Negoro, your smallminded pettiness is a disgrace for your great country. Go f*ck yourself.

    To round it off with a little anecdote: Together with a Pakistani friend who lives in Canada I once I visited the Gunung Batur region in Bali which is classified as an obyek wisata and as such is subject to an income fee for tourists. Me as a bule I had to pay the fee while my Pakistani friend, who doesn’t even know a word of bahasa Indonesia, could go in for free because he has brown skin.

    @ all

    Make your own conclusions.

  9. avatar Geordie says:

    ET asked the following: –

    I find it particularly distasteful when I see bule, especially bule tourists, haggling in markets and such.

    Is it permissible in England to ask a Pakistani 10 x the price of an item compared to a local bule?

    That’s slightly disingenuous ET but I’ll take it. Where the price of an item is displayed then that’s the asking price as typically happens in the UK, then that’s the price you pay, irrespective of your ethnicity, but there’s nothing stopping an idividual offering a lower price should he or she so desire and it’s up to the seller to decide if he or she wishes to accept. Conversely, where no price is displayed then the purchaser must enquire.

    This, I assume, is where you’re coming from? It is rather simple economics, first there’s a helluva lot more locals than tourists/expats and with a bigger market, comes the ability to move more inventory more quickly thus whilst the margin is low, the revenue is adequate; in this demand and supply side wastage is managed effectively.

    Toursits and expats exhibit an excess of demand and, most importantly, have the means on the whole to fuel it, therefore, an item’s price has to be elastic enough to meet the demand waste. De Beers do this awfully well, by infering a rarity that is actually false, the price of diamonds, in this case, inflates to match demand. It’s just simple business and people’d be daft not to exploit it; if you want something bad enough, you’ll pay and the ‘right’ price is whatever the market will stand. So perhaps instead of lambasting a local artisan, perhaps you could reserve some of your chagrin for the aquisitive tourist whose demand is fuelling the price?

    I will, if I may, take the emotive element of ethnicity out of the equation? When I used to live in the New Forest in England, I actually rented a house in Beaulieu and it was estate land. Now without going down a sidestreet of a discourse on feudalism in the UK, because I was renting on estate land, contributing to local commerce and generally being an all round good egg, I could go into the motor museum and Beulieu House free of charge; anyone outside the estate, even living in the Forest, had no such privedge.

    The point I’m making is that it’s usual, common even, for locals to pay less (in this case nothing) to obtan goods and services; indeed it’s the way of the world and rightly so in my opinion. So no, your contention that you’d be sued for ‘discriminative and racist practices’ at least in the UK, is false. And it should be borne in mind that the UK has some of the most stringent consumer protection laws in Europe, if not the world.

    By way of further illustration, I currently live in Africa and it is the case that entrance to the national parks is costs a tourist 10 times more than a local, is this wrong? Perhaps you should read my earlier post because I don’t think you’ve grasped the nature of sustainable management of national resources. Of course there’s an altenative if, on the grounds of principle, you don’t feel able to be charged more and, going back to my first paragraph, the seller won’t accept your reduced offer you don’t have a ‘double coincidence of wants’ (borrowed from the barter system but works in this context) then you walk away and the seller retains his goods; no harm, no foul.

  10. avatar ET says:

    Geordie

    That’s slightly disingenuous ET but I’ll take it. Where the price of an item is displayed then that’s the asking price as typically happens in the UK, then that’s the price you pay, irrespective of your ethnicity, but there’s nothing stopping an idividual offering a lower price should he or she so desire and it’s up to the seller to decide if he or she wishes to accept. Conversely, where no price is displayed then the purchaser must enquire.

    This is exactly what I meant. Suppose the price tag for a particular item in England displayed “£1 for white locals, £10 for brown Pakistanis”, how would you react?
    But when there is no price tag then you deem it o.k. Strange.

    But I do agree that for certain public goods like entrance tickets for local entertainment and heritage sites local people get a discount or even free entrance. This is the practice in most parts of the world and I have no difficulties with that, only when it becomes a racial issue like in my little anecdote above.

  11. avatar Barry Prima says:

    Suppose the price tag for a particular item in England displayed “£1 for white locals, £10 for brown Pakistanis”, how would you react?

    Me I’m not shy to say I haggle, it’s part of the banter, especially in some countries the locals expect it, the harrasment of foreigners to buy stuff is nothing in Indo compared to the middle east, china and elsewhere, if you have a good humour and cheekiness you get very far in java, quite often I have been given things free of charge precisely because I appear as a foreigner….it works both ways.

    But when there is no price tag then you deem it o.k. Strange.

    With all due respect ET indonesia is not England, commerce goes hand in hand with certain local adat/loyalties, just think of the times youv’e had to buy stuff you don’t need from family members or friends (multi level marketing) just to save face, or the worst tipping tukang parkir, which is really annoying, but part of the deal living in indo?
    The best thing to do is smile about it, and play the game, once you get good at the game, you make more profit than loss.

    I have a business in collectibles, which I don’t price, when people ask me how much they are, I give them a quote based on what country they’re from or what they have paid before, or I ask them to make an offer and then price accordingly, the same principle is used by small traders in Indo, it’s nothing to do with the colour of your skin, it’s pure economics, business sense. The value of something is purely depended on the ability and willingness of someone to pay it.

    Your nations profited handsomely from colonialism- and thus by extension you did too – so now is the era of a tiny payback.

    Harsh words but it’s just karmic payback I can see a time when Asians will rule the world once again and europe will suffer nothing racist about that statement, it’s just the cycle of history.

  12. avatar ET says:

    BP

    I have a business in collectibles, which I don’t price, when people ask me how much they are, I give them a quote based on what country they’re from or what they have paid before, or I ask them to make an offer and then price accordingly, the same principle is used by small traders in Indo, it’s nothing to do with the colour of your skin, it’s pure economics, business sense.

    This is the correct way of doing business and I have certainly no complaints about dealing with Indo traders and export business people. But this tawar-menawar in market places, warungs, taxis and stuff like that becomes sometimes annoying.
    Guess I’ll have to live with it. *Sigh.

    Harsh words but it’s just karmic payback I can see a time when Asians will rule the world once again

    Some of them will first have to develop some sense of ‘excellence’. Harsh words in return.

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