The pandemic has inflicted the performance of the construction sector in Bali. Due to a lack of funding, the development of construction projects remains at a standstill.
The construction sector of Bali was previously appointed to work on various government projects that have been delayed due to budget cuts from the government. The halt has led to the unemployment of a large number of construction workers in Bali.
The Head of National Construction Manager (Gapensi) from Tabanan District, I Nyoman Yasa, explained that government project development is being postponed as the assigned budget has been relocated to focus on handling COVID-19.
“It’s the second month of 2021, construction project development is still quiet. There are no signs of progress yet. The conditions are the same as in 2020, ” Nyoman Yasa said.
In comparison with 2020, Yasa said that this year could potentially become much worse, as many construction businesses in Bali decided were unable to extend their permit due to the lack of demand.
“Since 2020, I’ve seen many ongoing projects get canceled by the government. A lot of my business colleagues have voiced concern since then,” Nyoman Yasa said, “It’s better we stop our operation, rather than going bankrupt,” Nyoman said.
Many construction workers lost their jobs as business owners became incapable of paying their salary.
From the 100+ construction businesses registered with Gapensi of Tabanan, 60 of them remain operating to continue unfinished projects from last year.
“I’m afraid that more businesses will be affected once those projects are finished as the government decided to postpone their infrastructure development, including public roads and government buildings,” Nyoman Yasa concluded.
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