Get to Know the Average Contractor Salary in Indonesia

Constructing a building, whether it's a house, office building, or other infrastructure, requires careful planning and execution. One important profession in this process is the contractor. Contractors are divided into two types: subcontractors and prime contractors.

As the person in charge of the smooth progress of a construction project, contractors play a crucial role. Then, how much is the salary of a contractor in Indonesia? Let's find out the answer in this article!

What Is a Contractor?

A contractor is an individual or company responsible for carrying out, supervising, and managing a construction project. They work with project owners, architects, and engineers to ensure that the project is completed on time, within specifications, and according to the budget. There are two types of contractors you need to know, such as:

The prime contractor is responsible to the client for the overall project, including planning, managing workers, organizing finances, and estimating completion time.
The subcontractor handles specific parts of the project, such as electrical installations, furniture arrangement, tile installation, painting, and other technical tasks.

This profession is typically pursued by graduates in civil engineering, architecture, interior design, and electrical engineering. Contractors working in the infrastructure sector generally have higher salaries compared to those in other fields because their responsibilities are related to public comfort and safety.

Contractor Job Description

Contractors play a crucial role in every stage of a construction project, from the planning and design phase to the construction execution, and even the maintenance after construction. They have to ensure that the project progresses according to plan and delivers the best results. Here is a detailed explanation:

1. Providing Design for Ongoing Projects

One of the contractor's responsibilities is to create the design for the ongoing project. Before designing, the contractor needs to conduct a site survey to understand the physical conditions and the surrounding environment.

Then, contractors will collaborate with the client to understand their needs, preferences, and budget. Accordingly, they integrate these elements into an appealing design that meets the client's expectations, while considering sustainability and safety.

2. Procurement of Construction Services and Materials

Another responsibility of the contractor is to procure the services and materials required for the construction project before the construction begins. They must carry out various tasks, including excavation for the foundation, creating a strong foundation, and constructing a soak pit for managing water flow.

Additionally, they must clear the land of any obstacles and debris that could disrupt the construction process. All of these tasks must be carried out carefully and professionally to ensure that the project can commence smoothly according to the agreed plan.

3. Renovation and Remodeling After Construction

Contractors are also responsible for renovations and remodeling to repair damage and ensure the building aligns with its original design. By evaluating the structure, installation systems, and building materials, they can determine the necessary repairs.

Additionally, they also plan and execute repairs, such as reinforcing structures, replacing damaged materials, and fixing installations. With that being said, a contractor also needs to enhance the value of the building by updating the design, utilizing the latest technology, and adding new features that meet the users' needs.

Contractor Salary

Contractor salaries vary based on location, expertise, and the scale of the project being worked on. Here are the salary ranges for contractors per month:

Entry-level construction workers: IDR3 million – IDR5 million.
Contractor technicians: IDR6 million – IDR15 million.
Contractor directors: IDR20 million or more.

In addition, contractor salaries can also be determined based on their career level. Contractors usually start in small businesses and grow into larger enterprises. In general, contractors are categorized into three groups based on the value of the contracts they manage, as explained below:

Small Contractors:

- K-1: Manages projects with contract values up to IDR1 billion.
- K-2: Handles projects with contract values up to IDR1.75 billion.
- K-3: Carries out projects with contract values up to IDR2.5 billion.

Medium Contractors:

- M-1: Handles projects with contract values not exceeding IDR10 billion.
- M-2: Manages projects with contract values up to IDR50 billion.

Large Contractors:

- B-1: Runs projects with contract values up to IDR250 billion.
- B-2: Manages projects with contract values without limits.

Each level reflects the contractor's capacity to handle projects based on contract value and work complexity. If the experience and qualifications improve, a contractor can achieve higher levels in their profession.

Types of Contractors

Building or renovating a property is a significant investment. Therefore, choosing the right contractor is crucial. There are various types of contractors with different specializations you should know, such as:

1. General Contractors

General contractors handle a wide range of construction projects, from residential buildings to large infrastructure projects. Their main tasks include planning, procurement of materials, supervision, and coordinating with subcontractors to ensure the project runs smoothly and is completed as planned.

2. Interior Contractors

Interior contractors manage the work related to the interior of buildings, such as homes, offices, or stores. They collaborate with designers and project owners to realize functional and aesthetically pleasing designs. Their tasks include installing partitions, painting, laying floors, installing ceilings, lighting, and furniture.

3. Renovation Contractors

Renovation contractors are responsible for updating or repairing existing buildings. They work with property owners to meet renovation needs. Their main tasks include demolition, updating electrical and plumbing installations, interior and exterior repairs, and improving building efficiency.

4. Landscape Contractors

Landscape contractors are responsible for building and maintaining outdoor areas, such as gardens and yards. They specialize in garden design, horticulture, and irrigation systems, all with the right materials. Their tasks include land preparation, planting, installing irrigation systems, creating pathways, and installing decorative elements like fountains or rock gardens.

5. Electrical Contractors

Electrical contractors generally handle the installation, maintenance, and repair of electrical systems, as they are knowledgeable about safety standards and electrical regulations. Their tasks include installing wiring and electrical equipment, repairing damages, as well as testing systems. Additionally, they may design and plan electrical systems for new projects.

6. Civil Contractors

Civil contractors focus on building infrastructure, such as highways, bridges, airports, drainage systems, and land development projects. They have extensive knowledge of civil engineering to ensure that projects meet safety standards. Their tasks include building strong structures and managing the necessary environmental and permit processes.

That was the complete overview of contractor salary ranges in Indonesia. As mentioned above, there are many factors that can influence the salary of a contractor. Also, being a contractor requires more than just technical skills; the ability to choose the right building materials is also crucial.

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