Abstract
This paper presents an empirical analysis and justification on collaboration between small and large enterprises through strengthening partnership (subcontracting) in order to strengthen the contribution of the construction sector in the national economy. Some conclusions that can be taken that: (i) the construction of market share inequality can be balanced with application the partnership (subcontracting); (ii) Siding with non-small enterprises/large (mostly foreign entities) will push the capital outflows and reduce the competitiveness of the nation; (iii) Strengthening the supply chain through partnership scenario (subcontracting) on the entire flow of the chain will support the role of small business concerns in seizing the national construction market; (iv) weakness of collaboration patterns can be reduced by setting policies that favor (affirmative) the existence of a small body as part of the construction industry; (v) The construction market continues to increase is not offset by an increase in the construction market of small business entities resulting gap portion of the acquisition capitalization construction. (vi) Policy subcontracting by small business entities will potentially increase the absorption of the construction workforce (value added) and construction GDP in national GDP and consequently increase economic growth as an indicator of the competitiveness of nations.
Highlights
In considering the balance of supply and demand of goods and services, construction required estimating the size of the capacity of the construction industry in the construction market
Whereas 15% of the construction market contested by small business concerns while the remaining 85% owned by a large corporation that is only inhabited by 10%
Inequality construction market can be balanced with policies partnership through a legal contract engagement
Summary
In considering the balance of supply and demand of goods and services, construction required estimating the size of the capacity of the construction industry in the construction market. Whereas 15% of the construction market contested by small business concerns while the remaining 85% owned by a large corporation that is only inhabited by 10%. [2] The construction market in Indonesia has become distorted due to pseudo competition through a brokerage or rent seeking and the emergence of pseudo contractor (shadow players) caused by political transactions. A more concerned condition is that the national construction market still dominated by 60% of foreign entities. This dominance is only inhabited by 10%. [4] Ministry of Public Works (2010) released the importance of the implementation of supply chain systems in supporting an independent national construction industry. A policy such as the strengthening of the system of collaboration between large and small enterprises are offered in the form of subletting, subcontracting and partnership
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