Preliminary Budgeting for Construction in Indonesia

Team Structure and Preliminary Budgeting in Indonesia

In the world of Indonesian construction, the distance between a "profitable project" and a "financial disaster" is usually measured by how well the site is managed. Whether you are developing a luxury villa in South Lombok, a commercial complex in Praya, or a warehouse in Mandalika, the human element—your project team—is your biggest asset and, if mismanaged, your biggest liability.

This guide breaks down the essential roles of a construction team and dives deep into the "black box" of project financials known as Preliminaries.

Part 1: Site Team

A common mistake in local projects is over-staffing or under-skilling. You need a "lean and mean" structure where every role has a clear purpose.

1. The Leadership: PM, SM, and ASM

At the top, we have the Project Manager (PM). In the Indonesian context, the PM is the bridge between the boardroom and the mud. They don’t necessarily need to be on-site every day, but they must control the cash flow and the client’s expectations.

Below the PM is the Site Manager (SM). This is the most critical hire. A good SM in Indonesia isn't just a technician; they are a diplomat who can talk to village heads and a commander who can push subcontractors to meet deadlines. The Assistant Site Manager (ASM) then acts as the "enforcer," handling the heavy paperwork and ensuring that the SM’s strategies are actually being executed in the field.

2. The Drafters

No project should move a single stone without a Shop Drawing. We divide this into two specialized roles:

• Structural & Architectural Drafter: They ensure the "bones" (rebar, concrete) and the "skin" (finishing, tiles) of the building are aligned.
• MEP Drafter: They prevent the "clash." In many failed projects, you’ll see workers chipping away at a freshly poured concrete beam because the plumber forgot where the pipe goes. The MEP Drafter prevents this by mapping out every wire and pipe before the first bag of cement is opened.

3. Supervisors (Pelaksana)

In Indonesia, we call them Pelaksana. They are the eyes and ears on the ground.

• Structural Supervisor: Focuses on the strength. They check the diameter of the steel and the quality of the concrete mix.
• Architectural Supervisor: Focuses on the "look." They ensure the tiles are level and the paint is smooth.
• MEP Supervisor: Focuses on the "function." They make sure the lights turn on and the toilets flush.

4. Surveyor and Logistics

The Surveyor ensures the building is actually on the right land—a common issue in sprawling areas like Central Lombok where boundaries can be blurry. Finally, the Logistics & Storekeeper role is your defense against "material leakage." In construction, if you aren't counting your cement bags, they will disappear.

Part 2: Personnel Direct Costs & Site Office Expenses

When you look at a Bill of Quantities (BOQ), the first section is usually Pekerjaan Persiapan or Preliminaries. This is where many developers get confused. It isn't just "extra fees"; it's the engine room of the project.

Personnel Direct Costs (Biaya Langsung Personil)

This represents the literal cost of the brains behind the project. In Indonesia, we calculate this using the Man-Month unit.

• Practical Tip: Don't just look at the base salary. You must account for "Field Allowances" (Uang Makan), communication credit (Pulsa), and sometimes "Success Fees" for meeting milestones. In remote areas like Central Lombok, you might also need to provide a "Hardship Allowance" if your staff is coming from Mataram or Java.

Site Office Expenses (Biaya Operasional Kantor Lapangan)

This is what it costs to keep the office running. It includes:

1. The Direksi Keet: The temporary office. Pro-tip: For projects under 8 months, renting a modified container is cheaper and looks more professional. For longer projects, building a semi-permanent timber structure is more cost-effective.
2. Consumables: Electricity and water are often underestimated. In Central Lombok, where water can be scarce during the dry season, the cost of trucking in water tanks can be a significant monthly expense.
3. Connectivity: In today’s construction world, WhatsApp is the primary management tool. High-speed internet at the site office is no longer a luxury; it’s a requirement for sending large CAD files and daily video reports.

Part 3: Project Preliminaries in Central Lombok

Lombok Tengah is currently a hotspot for development, but it presents unique challenges that must be reflected in your BOQ.

The "Social Cost" (Biaya Koordinasi)

In many parts of Indonesia, there is an unwritten line item in the budget: Coordination with the local community. This isn't a "bribe"; it's community relations. It might involve hiring local security guards from the nearest village or contributing to local festivities. If you skip this, your trucks might find the road "blocked" just when you’re about to pour concrete.

The Logistics Challenge

While Praya is the hub, moving materials to the south coast (Kuta/Mandalika) adds a layer of cost. Your Logistics Officer needs to be an expert in "Just-in-Time" delivery. Storing too much material on-site in Lombok invites humidity damage and theft, but storing too little means high transport costs for small loads.

Part 4: A Sample BOQ for Preliminaries

To give you a clear picture, here is how a professional Preliminaries section looks for a 6-month project in Central Lombok.

Table: Sample Preliminary Works (Pekerjaan Persiapan)

| Code | Item Description | Unit | Quantity | Rate (IDR) | Total (IDR) |

| 1.0 | Human Resources (Staffing)

| 1.1 | Site Manager (Full-time) | Bln | 6 | 10,000,000 | 60,000,000 |

| 1.2 | Assistant SM / Admin | Bln | 6 | 6,500,000 | 39,000,000 |

| 1.3 | Combined Supervisor (Struc/Arch) | Bln | 12 | 5,500,000 | 66,000,000 |

| 1.4 | Logistics & Storekeeper | Bln | 6 | 3,500,000 | 21,000,000 |

| 1.5 | Surveyor Service (Key Milestones) | LS | 1 | 10,000,000 | 10,000,000 |

| 2.0 | Site Facilities & Utilities 

| 2.1 | Site Office & Warehouse Const. | LS | 1 | 20,000,000 | 20,000,000 |

| 2.2 | Electricity & Water Consumption | Bln | 6 | 3,000,000 | 18,000,000 |

| 2.3 | Internet, ATK & Reporting | Bln | 6 | 1,500,000 | 9,000,000 |

| 3.0 | Mobilization & Social 

| 3.1 | Mobilization of Heavy Equipment | LS | 1 | 15,000,000 | 15,000,000 |

| 3.2 | Community Coordination (Monthly) | Bln | 6 | 2,000,000 | 12,000,000 |

| 3.3 | Security / Local Night Watch | Bln | 6 | 3,000,000 | 18,000,000 |

| TOTAL | | | | | 288,000,000 |

Note: These prices are estimates for 2026 and may vary based on specific project complexity.

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Part 5: Maximizing Efficiency

If you want to keep your project "Low-Cost" without sacrificing quality, follow these Indonesian field-tested strategies:

1. Multi-Skilling: Hire a Drafter who can also handle the Site Admin/Secretarial work. In the digital age, a person who is good with AutoCAD is usually good with Excel and reporting.
2. The "Local" Guard: Always hire your night-shift security from the local village. They know everyone, and their presence acts as a natural deterrent against theft. It is the best "insurance" you can buy.
3. Digital Supervision: Instead of hiring three Pelaksana, hire one senior Pelaksana and equip them with a good smartphone. Use a dedicated WhatsApp group for each zone (e.g., "Villa A - Structure") where they must post photos of every reinforcement bar before the concrete is poured. This creates a digital trail and reduces the need for middle-management.
4. Surveying for Success: Never "guesstimate" your elevations. A mistake of 5cm in your foundation level can cost you tens of millions later when the plumbing doesn't drain correctly. Invest in a professional surveyor at the start; it pays for itself.

Building in Indonesia, especially in a developing region like Central Lombok, requires a blend of technical discipline and local wisdom. Your Personnel Direct Costs and Site Office Expenses aren't just numbers on a page—they represent the quality of oversight your project will receive. By structuring your team correctly and budgeting for the realities of the field, you ensure that your construction journey is smooth, transparent, and, most importantly, profitable.