Abstract
In 2014, the Ministry of Public Works and Housing have published regulation that require the full implementation of Occupational Safety and Health Management System or short as OHSMS (known as SMK3 in Indonesia) in all phases of construction projects. The so called PerMenPUPR 5/2014 imposed an allocation of cost specific for OHSMS in the owner’s estimate, which was later updated as PerMenPUPR 2/2018 for minor adjustments in the regulation. This regulation was supported with guidelines for project managers on estimating the cost allocation for OHSMS. However, the initiative to address safety issues more comprehensively has been ineffective. The directive has not been seriously implemented by stakeholders on public projects. Thus, to help convince all stakeholders, more quantitative evidence on the costs for implementing OHSMS is pursued. This study is to determine the percentage of costs allocated by contractors for the procurement of OHSMS components. Data were collected from surveys to eight construction sites of high-rise building projects in Jakarta and Bandung. Based on interviews, questionnaires, and supporting documents from each case study, the cost of implementing the regulation was simulated and estimated. The cost allocation ranges from 2.01% to 3.70% of the contract value. The most significant components of the costs were related to OSH personnel (44.10%), insurance and licensing (35.2%), and OSH induction and promotion (5.82%).
Highlights
Construction sector has a very important role in Indonesia's economic growth
In the first quarter of 2018, the contribution of the construction sector to GDP alone was recorded at 10.5% or worth Rp.367,8 trillion In terms of employment, the construction industry absorbs 8.14 million work forces [1]
The simulated budget of Occupational Health and Safety Management System (OHSMS) were calculated based on site observations
Summary
Construction sector has a very important role in Indonesia's economic growth. It is the third biggest driver in 2016, contributing to 30.5% of Indonesian GDP. In the first quarter of 2018, the contribution of the construction sector to GDP alone was recorded at 10.5% or worth Rp.367 trillion (approximately US$25,14 billion) In terms of employment, the construction industry absorbs 8.14 million work forces (as of August 2017) [1]. In 2014, based on the Indonesian social security agency data, the number of work accidents in this sector reached 32% of the total workplace accidents. Occupational accident data recorded by BPJS Ketenagakerjaan from 2014-2017 are 103,235; 105,383; 110,272; 101,272; and 123,041 cases per year, respectively. It is commonly understood that accident data are in most cases underreported
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
