Abstract
The business construction in Indonesia is subject to widespread corruption. The efficiency of business construction operations is constrained by corrupt judiciaries, which complicate the resolution process and weaken the protection of property rights. Construction industry corruption undermines the results of Indonesia's construction project and construction industry. The purpose of this paper is to provide an overview of corruption in construction activities so that stakeholders have exposure and discuss the prevention plan of corruption practices. A complete literature review identified a total of 10 preventive corruption practices in the construction industry were (1) enforcement of the law, regulation, and sanction; (2) high integrity and honest construction culture; (3) active reporting channel; (4) audit mechanism; (5) code of conduct; (6) public disclosure; (7) whistle-blowers protection; (8) Comprehensive supervision; (9) appropriate training program; and (10) income level adequacy. This paper seeks to thoroughly investigate an effective preventive plan in corruption practices, especially the construction sector. It provides insight and increases awareness of corruption practices among the construction stakeholders and society.
Highlights
One thing that is hampering Indonesia's economy today is the slow pace of construction development - this is marked by the lack of quality and quantity of construction or infrastructure
The research study of Zou (2006) regarding the preventive corruption plan in China received a respond from interviewee which claimed that besides strengthening the management of construction organizations, the laws, and regulations, as well as sanctions in the construction industry, is a must to prevent vulnerability to the unscrupulous practitioners to practice corruption acts
The establishment of strict sanctions can increase the fear of corruptors, which eventually reduces corruption practices (Tabish & Jha, 2012)
Summary
One thing that is hampering Indonesia's economy today is the slow pace of construction development - this is marked by the lack of quality and quantity of construction or infrastructure. Indonesia's infrastructure seems to have difficulty encouraging structural and rapid development in Global Competitiveness Report 20152016, compiled by the World Economic Forum (WEF). In WEF, Indonesia ranks 62nd out of 140 countries in terms of construction development, where this ranking showed in common work standards but instead caused several significant problems in the Indonesian economy (Indonesia Investment, 2019). It causes investors to lose their trust in the construction industry of the country. The high level of corrupt practices in a country affects the consideration of global institutions to invest in the market of the country (Olken, 2007)
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