Abstract
The competition among providers of construction services often leads corruption. The purpose of this study was to examine the characteristics of corruption in construction projects in Indonesia. The analysis of 15 (fifteen) cases are conducted by grounded theory method using coding techniques. The results showed that (a) the characteristics of construction projects involved in corruption is dominated by projects which, are owned by government that hire private company as the contractor; happen on infrastructure project; located in Java and Sumatra; (b) the vulnerability characteristics of construction projects involved in corruption are: occurs at construction phase due to contractual violation; sequential acts of corruption is begin with the difference between the volume of work that resulted in payments, which is not in accordance with progress reports; and the parties involved is Committing Officer (Pejabat Pembuat Komitmen/PPK); (c) the characteristics of corruption in construction project are: cause losses of 16-33% of the project value; and prison sentence of 44.8 months with the demands of a fine of USD. 10.660,- (d) the characteristic of the impact of corruption in construction project are: cause construction failure; 73% had an appeal to the High Court level and 33% had an appeal to the Supreme Court.
Highlights
Due to the need for construction which continue increase every year, it drives the hard competition among providers of construction services
Anatomy of the characteristics of corruption in construction projects in Indonesia can be formed by a process system of corruption, which starts from the causes of corruption lead to vulnerability of corruption, the process of corruption that occurred on the
In Indonesia, the division of the project site greatly affect the implementation of the project, which at inland locations and customs of the community intervention influence is still very strong compared to the big cities
Summary
Due to the need for construction which continue increase every year, it drives the hard competition among providers of construction services. The competition often leads corruption in Indonesia. According to the Corruption Perception Index 2014 released by Transparency International, Indonesia is ranked 107th of 175 countries, Singapore is ranked 7th, and Malaysia is ranked 52nd. The number of corruption in Indonesia is still higher compared to other ASEAN countries, such as Singapore and Malaysia. Corruption occurs repeatedly leave a significant impact both on people and the government. Besides corruption led arises a sense of distrust of the government (Mc Mullan, 1961). In the aspect of its own development, corruption can affect the design and construction has been planned so that the construction can lead to failure. Corruption is a problem that is often faced by the construction project in Indonesia. Corruption in construction projects that occur repeatedly lead to a pattern of how the corruption occurred.
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