East Kalimantan Construction Activity Center
East Kalimantan is currently one of Indonesia’s largest construction hubs. Balikpapan and Samarinda are two key hubs supporting various major projects—from the Pertamina RU V Balikpapan oil refinery, the Balikpapan–Samarinda (Balsam) toll road project, the Kariangau port development, to housing, industrial estates, and renewable energy projects.
Each of these projects involves investments worth hundreds of billions to trillions of rupiah, hundreds of workers, and high-tech heavy equipment. But behind this enthusiasm for development, one aspect is often overlooked: the significant risks at every stage of a construction project.
Losses due to fire, heavy equipment damage, work accidents, or structural failure can halt a project and create a large financial burden for both the contractor and the project owner.
This is where the importance of proper risk management and insurance protection lies, under the guidance of a professional insurance broker such as PT Liberty and General Insurance Broker (L&G).
Major Risks in the Construction World of East Kalimantan
Every construction project carries different risks depending on the location, type of work, and field conditions. Here are some typical risks that frequently occur in projects in East Kalimantan:
- Work Accidents
Large projects such as the Balikpapan oil refinery or the construction of an LPG terminal in Kariangau involve work at height, welding, and mechanical installation.
The risk of serious injury or even death to workers can occur at any time, especially if safety standards (HSE) are not optimal.
Accidents like these can result in financial losses, project schedule disruptions, and legal liability for workers.
- Heavy Equipment Damage
Balikpapan is known as a hub for heavy equipment suppliers in Eastern Indonesia. Many construction projects utilize cranes, excavators, and large-capacity lifting equipment.
Damage due to operator error, landslides, or accidents in the work area can result in project downtime and high repair costs.
- Fire and Explosion
Projects related to oil and gas, such as the Pertamina RU V Balikpapan RDMP Project, have a high risk of fire.
A small fire can escalate into a major incident and result in material losses and project shutdowns.
- Natural Disaster Risk
East Kalimantan is not prone to major earthquakes, but high rainfall and soft soil conditions can cause landslides, flooding, and damage to project foundations.
This often happens in the areas around Samarinda, Muara Badak, or Tenggarong.
- Third Party Liability
Projects in densely populated areas or near public facilities risk damaging the property of local residents.
For example, vibrations from heavy equipment cause cracks in people’s houses, or project dust disrupts surrounding activities.
These things can lead to expensive lawsuits if not insured.
Real Case Example: Accidents in Energy Projects
In 2023, a gas pipeline installation project in the West Balikpapan area experienced a work accident when a crane overturned due to unstable ground.
One unit of heavy equipment worth Rp 4 billion was completely damaged, and work was delayed for two weeks.
Fortunately, the contractor already had a Contractor’s All Risks (CAR) and Third Party Liability (TPL) policy arranged through PT Liberty and General Insurance Broker (L&G).
Claims are fully approved after a technical verification process and payment is made within two months.
The important lesson from this case is: insurance is not just a project formality, but a guarantee of business continuity.
Types of Mandatory Insurance in Construction Projects
The following are the main types of insurance that every construction project actor in East Kalimantan must have:
- Contractor’s All Risks (CAR) Insurance
Protecting construction projects from the risk of physical damage such as fire, material theft, heavy equipment accidents, or natural disasters.
This policy coverage typically includes the project value, debris removal costs, and protection for temporary equipment.
- Erection All Risks (EAR) Insurance
Especially for projects involving the installation of machines or electrical systems, such as power plant projects, factories, and oil and gas installations.
- Third Party Liability (TPL) Insurance
Guarantees legal liability to third parties who are harmed by project activities — such as damage to surrounding buildings, injury to people, or environmental pollution.
- Workmen’s Compensation Insurance
Providing compensation to workers who experience work accidents or die.
This policy is very important for projects with large workforces, especially in the oil and gas and infrastructure fields.
- Contractor Plant and Machinery (CPM) Insurance
Protect heavy equipment and project equipment from damage, overturning, or fire.
Very relevant in Balikpapan, a city that is the national center of heavy equipment trade.
- Professional Indemnity Insurance
Guaranteeing project consultants, architects and engineers from lawsuits due to design errors or technical calculations.
The Strategic Role of Insurance Brokers in Construction Projects
Purchasing an insurance policy directly from an insurance company often leads to problems later on — especially when it comes to claims.
Many contractors in Balikpapan have complained that their claims were rejected or partially paid, simply because the policy wording did not match the risks in the field.
This is where professional insurance brokers like PT Liberty and General Insurance Broker (L&G) play an important role.
Here are the real benefits of using a broker:
- Project Risk Analysis
L&G thoroughly assesses the project location, type of work and potential risks.
They ensure that all major risks are covered, including the risk of flooding or unstable soil which often occurs in the Samarinda–Tenggarong area.
- Appropriate and Complete Policy Design
The broker drafts the policy wording according to the project’s needs, adding important clauses such as:
- Clause for Surrounding Property
- Cross Liability Clause
- Maintenance Period Cover
- Automatic Reinstatement Clause
- Negotiate the Best Premium and Terms
As a professional intermediary, L&G negotiates with several national and international insurance companies to obtain competitive premiums with the most comprehensive terms.
- Fast and Fair Claims Assistance
L&G accompanies the claims process from investigation to payment.
Their claims team’s expertise ensures that customers are not disadvantaged due to differences in policy interpretation.
- Digital and Online Services
Now, L&G provides digital claims reporting and consulting services — a great help for projects located far from Balikpapan, such as in Sangatta or Muara Wahau.
Case Study: Energy Warehouse Development Project in Kariangau
One real example comes from the energy warehouse construction project in the Kariangau Industrial Area.
During the casting process, heavy rain caused a small landslide and damage to the temporary wall.
The value of the damage reached more than IDR 1.2 billion.
However, thanks to the CAR + TPL policy arranged by L&G, the contractor received full compensation and was able to continue work without major disruption.
Brokers help prepare reports, coordinate with loss adjusters, and negotiate with insurance companies to ensure claims are approved quickly.
The Importance of Risk Management from the Beginning of a Project
Many new contractors assume insurance is only necessary once a project is underway. However, risks arise during the design and equipment mobilization phase.
By involving brokers from the start, companies can:
- Ensuring that contracts with project owners meet insurance obligations,
- Avoiding legal loopholes in employment contracts,
- And reduce additional costs due to duplication or lack of policy coverage.
L&G even provides risk assessment services before the project starts, so that all risks can be identified and controlled systematically.
Building a Safe and Resilient Construction Culture
East Kalimantan is heading towards a new era of massive development in the energy, infrastructure and industrial sectors.
However, sustainable development can only be guaranteed if all parties—contractors, project owners, and local governments—prioritize risk management and insurance.
Brokers such as PT Liberty and General Insurance Broker (L&G) act as strategic partners to ensure every project runs safely, efficiently, and is protected from major losses.
With extensive experience in Engineering & Construction Insurance, L&G has supported various strategic projects in East Kalimantan — from Balikpapan to Bontang, from ports to power plants.
Conclusion: Building Safely, Moving Forward with Protection
Construction and infrastructure are the backbone of East Kalimantan’s development. However, without sound risk management and proper insurance coverage, a single incident can halt a project and destroy a company’s reputation.
With the support of PT Liberty and General Insurance Broker (L&G), every contractor and project owner can feel secure because they have comprehensive protection, fast claims assistance, and professional consultation.
Now, with the convenience of technology, L&G is ready to provide the best service not only for projects in Balikpapan, but also for the entire East Kalimantan region.
Because building a strong future starts with managing risk intelligently today.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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