Developers' Shares Down After Gov't Demands Increased Supervision on Construction Sites

The share price of listed state-owned construction company Waskita Karya and its peers were down on the Jakarta Stock Exchange on Tuesday (20/02), after the government announced a temporary halt on all construction projects following an accident at one of Waskita's construction sites in East Jakarta. (JG Photo/Yudhi Sukma Wijaya)

Jakarta. The share prices of listed state-owned construction company Waskita Karya and its peers were down on the Jakarta Stock Exchange on Tuesday (20/02), after the government announced a temporary halt on all construction projects following an accident at one of Waskita's construction sites in East Jakarta.

Waskita's share price fell 2.6 percent in the first market session to Rp 3,030 ($0.19), compared to a 0.65 percent decline in the overall index.

State-owned peers like Wijaya Karya and Jasa Marga also saw a decline of 2 percent and 2.2 percent respectively in share prices.

A concrete mold at one of Waskita Karya's toll road projects in Jakarta collapsed on Tuesday (20/02) morning, injuring seven workers, police said.

The accident is the latest in a string of failures for the state-owned firm, raising concerns about Waskita's operations at a time when it is currently spearheading the government's ambitious infrastructure development projects across the country.

Housing and Public Works Minister Basuki Hadimuljono said on Tuesday that the ministry has demanded a halt to all development projects involving elevated construction.

"All works, from toll roads, the LRT and bridges must halt and be audited by the Construction Safety Committee," Basuki said, as quoted by Antaranews.com.

President Joko "Jokowi" Widodo, eager to advance infrastructure development projects across the archipelago, has ordered the Ministry of Public Works to increase supervision on construction sites.

"I have told the Housing and Public Works Ministry to increase supervision," Jokowi said.

The Becakayu Toll Road -- the site of Tuesday's accident -- is a central pillar in Jokowi's infrastructure pursuit. The project restarted in 2014 after decades of neglect by previous administrations.

The project's costs are estimated at around Rp 7.23 trillion.

 

Show More

 
MORE NEWS