Indonesian Construction Industry Research Articles

Evaluating Drivers and Barriers of Integrated Waste Management System Implementation in Indonesian Construction Industry: A DEMATEL-Based Analytical Network Process

The growth of construction industries in Indonesia creates an increasing level of generated construction waste. The limited implementation of ISO 14001 in the Indonesian construction industry might indicate the limited implementation of waste management based on sustainability principles. Therefore, this study aims to explore the drivers and barriers to implementing integrated waste management in construction industries. The Content Validity Index (CVI) and Modified Kappa methods were utilized to validate the indicators from the literature review. A total of 18 driver factors and 21 barrier factors in six dimensions were assessed by seven experts. This study then employs the decision-making evaluation and laboratory-based analytical network process (DEMATEL-based ANP) to find the weight and relation between each indicator and dimension. The results show that environmental awareness is the most important factor that drives construction industries to implement waste management in their company. In contrast, a lack of education about waste management is the most significant factor that inhibits construction industries from implementing sound waste management systems.

Comparison of Using Conventional Estimating and Sketchup Pro for Bill Quantity Takeoff Process

Departing from academic anxiety that the construction industry in Indonesia has made rapid progress with the adoption of computing technology and methods in recent years. Increasing infrastructure development encourages construction actors to effectively and efficiently improve project quality. However, the role of the quantity surveyor becomes crucial in facing challenges such as manual quantity picking which is prone to errors and cost estimation that is difficult to do based on rough schematic design. In the context of traditional construction projects, quantity lists are arranged based on 2D drawings, but the use of 3D models has diminished since the adoption of BIM. Sketchup, as a 3D modeling software, and its extension Quantifier Pro provide a solution by combining 3D models to produce accurate quantity takeoff calculations on the Bill of Quantity. This research aims to develop methods to improve the quantity accuracy of elements of an incomplete or incorrect Sketchup model, in the hope of reducing modeling time, improving quantity retrieval performance, and making Sketchup-based cost estimation more effective and efficient in the context of construction. This research method involves 3D modeling using the Sketchup Pro application, using secondary data in the form of Detailed Engineering Design (DED) working drawings. Volume calculation in the Bill of Quantity is done with the help of Sketchup Pro software. The research location is in the Mullberry Cluster residential project, Bekasi City, West Java. The house building in this project was chosen as an object of comparison between conventional calculation methods and calculation methods using Sketchup Pro software. The main focus is to overcome the challenges of manual quantity picking and cost estimation from rough schematic design, emphasizing the crucial role of quantity surveyors. The results showed that the use of 3D models in Sketchup can increase the accuracy of cost estimation and reduce modeling time. The conclusion of the study confirms that Sketchup as an effective alternative solution in increasing efficiency and accuracy in the construction process, especially in the context of taking the quantity of architectural work elements, contributes positively to the development of more sophisticated cost estimation methods in the Indonesian construction industry.

Green supply chain management strategy in the Indonesian construction industry using analytic network process to improve sustainability

The construction industry is among the sectors associated with high environmental risks, with the construction supply chain process being a primary concern due to its potential for environmental damage. The absence of green practices in the Indonesian construction industry has led to an ongoing increase in energy consumption and greenhouse gas emissions, posing a significant environmental threat. Green supply chain management (GSCM) is a concept that integrates the environmental aspect into traditional supply chain processes and can provide benefits not only on environmental performance but also on economic and organizational performance. This study aims to derive a suitable GSCM strategy in the Indonesian construction sector and investigate the relationship of GSCM strategy on sustainability performance. This study employed ANP to select the GSCM strategy and correlation analysis to examine the relationship involving professionals and practitioners in construction. The findings revealed that the efficiency-based strategy had the highest weight among the various GSCM strategies, and sensitivity analysis demonstrated that this strategy was not significantly affected by changes, making it the most suitable GSCM strategy. Also, the result indicates that the efficiency-based strategy moderately impacts sustainability performance. Therefore, the implementation of efficiency-based strategy can improve the sustainability of the Indonesian construction industry.

An Overview of Technology Landscape in Construction Materials for the Indonesian Construction Industry

Abstract.The Indonesian construction sector plays a substantial role in the nation's economic growth. According to the World Economic Forum, this industry currently contributes approximately 6% to the global GDP and is projected to increase to 14.7% by 2030. Nevertheless, the construction sector predominantly relies on traditional craft-based methods, resulting in suboptimal performance and quality due to limited technology utilization. Hence, the Indonesian construction industry must increase investment in technology adoption, development, and application to enhance national development support. Material technology plays an essential role in construction projects. A survey of 40 Indonesian contractors revealed that the utilization priority for concrete and steel materials remains high under normal conditions and during the covid-19 pandemic. This study aims to provide a comprehensive overview of the historical development, utilization, contribution, and future strategy for concrete and steel construction material technology in Indonesia. Contrastingly, this data is crucial for shaping construction technology development and utilization policies in Indonesia. The study will systematically chart the technological landscape in the country, employing literature reviews, interviews, and questionnaires as its methodology.Abstrak. Sektor konstruksi Indonesia memainkan peran penting dalam pertumbuhan ekonomi negara ini. Menurut World Economic Forum, industri ini memberikan kontribusi sekitar 6% terhadap Produk Domestik Bruto (PDB) global dan diperkirakan akan meningkat menjadi sekitar 14,7% pada tahun 2030. Namun, sektor konstruksi masih sangat mengandalkan metode tradisional, yang mengakibatkan kinerja yang kurang optimal dan kualitas yang rendah karena rendahnya penggunaan teknologi. Oleh karena itu, industri konstruksi Indonesia harus meningkatkan investasi dalam adopsi, pengembangan, dan penerapan teknologi untuk meningkatkan dukungan pengembangan nasional. Teknologi material memainkan peran penting dalam proyek konstruksi. Sebuah survei terhadap 40 kontraktor Indonesia mengungkapkan bahwa prioritas pemanfaatan material beton dan baja tetap tinggi dalam kondisi normal dan selama pandemi covid-19. Studi ini bertujuan untuk memberikan gambaran menyeluruh tentang perkembangan historis, pemanfaatan, kontribusi, dan strategi masa depan untuk teknologi material konstruksi beton dan baja di Indonesia. Sebaliknya, data ini krusial dalam kebijakan pengembangan dan pemanfaatan teknologi konstruksi di Indonesia. Studi ini akan secara sistematis menggambarkan lanskap teknologi di negara ini, dengan menggunakan studi literatur, wawancara, dan kuesioner sebagai metodologi utamanya. 

Inequality and vulnerability of informal employment during the pandemic

This study explores the impact of the COVID-19 pandemic on formal and informal workers in the Indonesian construction industry. Based on a questionnaire survey of workers in the province of West Java, it aims to test the view that informal workers are more vulnerable to job losses, wage cuts and the lack of social security safety net. Two research questions were posed. The first was to characterise the impact of the COVID preventative measures on their access to work, work hours, and income levels. The second objective was to examine the implementation of COVID-19 health and safety protocols at project sites and its impact on workers. A survey conducted in November and December 2020 in the province of West Java obtained 261 responses from 21 construction companies. Contingency table testing was carried out to test the hypothesis that the frequencies of occurrence in the formal and informal worker categories are independent of the frequencies in incomes and health and safety protocols. Contrary to job losses and wage cuts report in the literature, construction companies in West Java have resisted cutting the wages of informal workers and instead directed wage cuts to their higher paid formal workers. Compliance to COVID-19 health and safety protocols at project sites was reported to be high. This study makes unique contribution to the understanding of informal work in the construction industry and the impact of the recent pandemic on the incomes and workers’ welfare.

Current-Ready Indonesian Engineer in The Industry 4.0 Era

The Indonesian construction industry provides qualified regional infrastructure and human settlements. However, the disparity between the quality of infrastructure products and the competence of construction professionals to meet this, particularly in the Industry 4.0 era, still needs to be addressed. This paper reviews the existing government regulations on the construction engineer profession, who are leaders and managers to ensure the execution of construction project activities meet certain specifications, overcome all obstacles and problems from global changes and further contribute to the progress and independence of the nation. A relook at existing regulations in terms of (1) engineer professional programs, (2) engineer registration, (3) engineer institution, (4) engineer professional organization, and (5) rights and responsibility is necessary to help the construction industry in improving the roles and competitiveness of Indonesian engineers in this current 4.0 era. The outcome of this review can serve as an approach to developing a technical concept for the Indonesian engineer to take critical roles in effective quality control and management and create sustainable development in Indonesia.

Analysis of design-for-safety implementation factors in the Indonesian construction industry: A two-staged SEM-artificial neural network approach

Despite the rapid growth of infrastructure development in Indonesia, work safety remains a major concern in construction projects. Design-for-safety (DfS) is a critical strategy to prevent work accidents. The implementation of design-for-safety is one of the most important strategies for preventing work accidents. This study aimed to analyze multiple factors that influence the implementation of work safety design using two statistical approaches: structural equation modeling and an artificial neural network. Structural equation modeling analyzes the relationship pattern between variables and their indicators, and artificial neural network maps various similar patterns to predict variables that influence implementation. Designers, owners, policies, tools/equipment, knowledge, and contract documents positively affect design-for-safety implementation, with design and contract documents being the most significant variables. Accordingly, industry and government agencies are advised to prioritize contract documents and design factors, along with other variables as supporting factors in their programs to accelerate design-for-safety implementation in Indonesia.

Prioritizing Safety Climate Improvements in the Indonesian Construction Industry Using Supervised Classification

Despite its significance, the Indonesian construction industry has poor safety performance. Improving the safety climate has been seen as a way to improve safety in the industry. Research on safety climate in this context has identified a range of safety climate factors that require improvements. However, construction organizations face difficulties in implementing improvement recommendations due to resource constraints. In order to help construction organizations in their efforts to improve the safety climate, this research demonstrates the use of supervised classification approaches to identify specific safety climate factors that construction organizations should focus on. Data were collected from 311 construction practitioners in Indonesia using a 22-item safety climate survey. Supervised classification methods, comprising ensemble methods, Support Vector Machine, Naïve Bayes, and Nearest Neighbor, were used. The analysis identified 14 safety climate items that can represent the original dataset with high accuracy (93%). These 14 items can be considered crucial items that should be prioritized in the Indonesian construction industry. These items revealed that, due to the high power distance culture in Indonesia, top-down approaches, such as giving clear instructions, providing training, and reminding people often about safety, are effective for engaging employees to focus on and participate in safety. The findings also suggest that understanding cultural context is important to determine effective strategies to improve safety. This research has also demonstrated the potential application of supervised classification approaches to help decision makers improve safety by focusing on crucial factors within a context.

Company Stock Valuation Of Pt. Waskita Karya Tbk And The Impact Of Delayed Bonds Payment

The construction industry has demonstrated resilience during the pandemic, becoming a global economic engine. Indonesia's PT Waskita Karya Tbk, a state-owned construction company, reported negative financial performance in its annual report, indicating a decline in revenues. As a public corporation, the company must maintain excellent financial performance and offer opportunities for shareholders. The movement of SOE's Construction shares with the code WSKT has also experienced a downward trend. Based on the dynamics of the business environment, the purpose of this research is to gain a deeper understanding of the Indonesian construction industry to identify Waskita Karya's challenges and opportunities. In addition, the study will determine the company's intrinsic and relative value if it defaults on its debts. The research will compute the company's value using the discounted cash flow (DCF) method and comparable companies. The study analyzes the impact of bond payment delays on Waskita Karya's financial performance, examining how these delays affect cash flow, liquidity, and overall financial health. The study focuses on the company stock valuation of PT. Waskita Karya Tbk and the impact caused by bond payment delays. The findings provide valuable insights for investors, stakeholders, and financial analysts, helping them make informed decisions about their investment in Waskita Karya’s and better understand associated risks and opportunities. In conclusion, using the discounted cash flow analysis method, the implied value per share is IDR 550.22. 

Applying Association Rule Mining to Explore Unsafe Behaviors in the Indonesian Construction Industry

The frequency of work accidents in construction projects is relatively high. One contributing factor to work accidents is unsafe behavior by workers at construction sites. In Indonesia, this is the first study to investigate 2503 instances of unsafe behavior that occurred across Indonesian construction projects in relation to their attributes to obtain insightful knowledge by using the association rule mining (ARM) method. Association rule mining was used to explore the database. As a result, two consolidated rules were obtained. The most frequent unsafe behaviors were workers putting tools and materials in random places, workers not attaching safety lines at provided places, and workers moving work tools and materials in ways that were not in accordance with procedures. These unsafe behaviors were associated with accident types of falling, and being struck or cut by items, as well as violations of Manpower and Transmigration Ministerial Regulation 01/1980, and Manpower Ministerial Regulation 09/2016. The ARM results were evaluated with a reliability evaluation method before being validated by construction safety experts. Hence, the findings are reliable to be used as guideline information for safety trainers to prioritize related safety trainings and for safety inspectors when carrying out inspections on construction sites. As a result, safety management and safety performance can increase significantly.

Conceptual framework of green supply chain management strategy selection in the Indonesian construction industry

The construction industry is one of the industries that have high environmental risks. The construction supply chain process is the main concern due to environmental damage. The lack of green practices implementation in the Indonesian construction industry causes energy consumption and gas emissions to continue to raise every year which will negatively impact the environment. Green supply chain management (GSCM) is a concept that integrates the environmental aspect of traditional supply chain processes and can provide benefits not only on environmental performance but also on economic and organizational performance. This study aims to identify relevant GSCM practices to implement in the Indonesian construction industry and develop a conceptual framework based on ANP for green supply chain management strategy selection. This study uses the Delphi method and ANP which involves professionals and practitioners in construction. The findings show there are seven green design practices, seven green purchasing practices, nine green construction practices, four internal environmental management practices, and two green operation and maintenance practices that are relevant in the Indonesian construction industry, and also a conceptual framework for strategy selection of green supply chain management in construction.

Analysis of the Underlying Causes of Waste Generation in Indonesia’s Construction Industry

The construction industry produces enormous volumes of construction waste that have a negative influence on the environment. This study examines the underlying causes of waste generation in the Indonesian construction industry based on professional perspectives. This study used a questionnaire as a research instrument and examined the data with reliability and exploratory factor analysis. Based on the analysis, there are eight underlying causes that contribute to the generation of construction waste in the Indonesian construction sector. The five most significant underlying causes of waste generation that obstruct sustainable practices include waste-inducing site and human resource management approaches, inadequate collaboration and support among stakeholders, equipment management, material logistics management, and poor working environments. As a result, it is crucial for Indonesian experts to pay attention to the factors that contribute to waste generation in order to lessen its negative effects on the environment and promote sustainable practices.

Drone Readiness in the Indonesian Construction Industry

Despite being perceived as a traditional industry, the construction industry is slowly being ushered into the Construction 4.0 era. Drone technology is seen as a disruptive, game-changing technology that has the potential to improve performance across all construction phases. However, despite the size of the country and its rapidly growing construction industry, research on drone technology in the Indonesian construction industry is limited. This research, therefore, aims to assess the drone readiness of construction practitioners in Indonesia and use the findings to recommend ways to promote its use. Readiness in this research is reflected by levels of understanding, utilisation, and interest in drone technology, as well as barriers to using drones at work. Data collected using a questionnaire survey from Surabaya, the second largest city in the country, reveal that, despite the relatively high level of interest, levels of understanding and utilisation are low. Furthermore, the lack of skilled human resources, risks associated with using drones, high costs, and limited information about drone suppliers are barriers that hinder the adoption of this technology in the Indonesian construction industry. This study fills the gap in the current research on the use of drone technology in the construction industry and provides a basis for practitioners or researchers to promote the application of the technology.

Composite structure in the Kutus-kutus factory building, Gianyar, Bali

This study focuses on the design implementation and performance analysis of concrete-steel composite structure of a four-story Kutus-Kutus Factory, a facility for the production of herbal oils, built in the seismically active Gianyar district of Bali. In order to create an efficient, fully composite cross section, the design process uses an analytical approach that emphasizes the relationship between the concrete slab and steel beams as well as the design of each of these components. The structure was designed and assessed in accordance with Indonesia Building Standard guidelines for minimum load, earthquake-resistant, and concrete and steel based material requirements. The final results of the design confirmed that the composite performance is strong enough to withstand enormous loads combined in industrial buildings, particularly in seismically active areas, and can operate within the recommended safety margins and restrictions. This paper ends with a call for more research on the real application of composite structure design in Indonesia, which can then assist the rapidly expanding Indonesian construction industry in maximizing the advantages of using composite construction techniques.

The characteristic of follower’s personal mastery: A case in Indonesian construction industry

The purpose of this study is to understand the characteristics of Follower's Personal Mastery in the construction industry where followers are the givers of ideas and knowledge. We recognize the construction industry as one of the project-based organizations, has stiff competition criteria and the need for innovation in a short time span, so this research is very important because innovation results from the exchange of ideas and knowledge between leaders and followers ( Nahapiet & Ghoshal, 1998) through the Leader-member Exchange (LMX) mechanism (Dewanto, 2013). Leaders are known to have comprehensive general knowledge, while followers are known to have deep specialized knowledge (Hobday, 2000; Dewanto, 2013). The higher the Follower's Personal Mastery level, the higher the quality of the exchange of ideas and knowledge that is exchanged between followers and leaders. We chose research conducted in a construction State-Owned Enterprise (BUMN) in Indonesia which has many branches throughout the region, so that it is able to represent the construction industry. This study involved all 121 projects spread across Indonesia that existed at the time of data collection. The analytical method used in this research is descriptive statistical analysis, and the participation rate is 97.52 percent. The findings show that Follower’s Personal Mastery Variables has a high level with a mean of 4.56, especially In-Process Behavior 4.77 and Output Behavior 4.73.

The Effect of Capital Structure Management on Firm’s Value: The Case of Final Tax Regulation on Indonesian Construction Firm

In 2008, the Indonesian government implements the final income tax regulation, a new income tax concept. Since its implementation, the final income tax has had a significant impact on how the construction industry calculates its income tax liability. Implementation of the final income tax, which mandates that the final tax be calculated directly on the firm’s revenue, has directly reduced the tax shield that the firm benefits from. The M&M theorem provided a new perspective on capital structure. The theory stated that a firm’s capital structure influence on the cost of capital depends on the firm’s tax shield implications. Combining the M&M theorem and the final tax implementation, the purpose of this study is to determine if a firm’s capital structure influences the firm value and whether the cost of capital mediates such effect in the Indonesian construction industry through the proxy of long-term debt-to-equity ratio, share price, and weighted average cost of capital. Using a quantitative methodology, secondary data from construction companies listed on the Indonesia Stock Exchange between 2012 and 2019 are collected for this study. This study utilized linear regression and the simple mediation model. The result indicates that the long-term debt-to-equity ratio has a direct and significant positive effect on the stock price of the company. Meanwhile, the weighted average cost of capital does not have a significant mediating effect on the relationship between capital structure and stock price. The finding of this research is intended to provide firm managers an insight surrounding the implication of capital structure within Indonesia construction industry in order to be able to increase firm’s value.

Investigation of requisite measures for enhancing sustainable construction practices in Indonesia

PurposeThis study investigates the requisite measures for enhancing sustainability practices within the Indonesian construction industry based on professional perspectives.Design/methodology/approachThis study used quantitative approach for data collection. A survey was conducted, using a questionnaire completed by 482 Indonesian construction professionals as a research instrument, and data were analyzed through reliability and exploratory factor analysis.FindingsThe findings suggest that for sustainability practices to become widely implemented within the Indonesian construction industry, certain measures are required. These include the need to raise awareness through education, development of standardized benchmarks, and the implementation of appraisal systems by the government, professional bodies, and academic institutions. These approaches are expected to build capacity and enhance the knowledge of sustainability among construction professionals and their clients. In addition, sustainable construction practices could be encouraged through a subsidized green market, which could be finalized supported by the government from financial penalties levied against non-sustainable practices.Originality/valueBy implementing the underlying strategies within the Indonesian construction industry, the poor knowledge, awareness, implementation, and motivation for sustainable practices within the Indonesian construction industry could be addressed, thereby reducing the environmental impacts associated with buildings and construction activities.

A lesson learned from the integration of BIM in construction engineering education in an Indonesian Polytechnic

The Indonesian construction industry has increasingly adopted Building Information Modeling (BIM). One of the barriers to adopting BIM is BIM skills among graduates are still rare. Therefore, higher education institutions have to adopt BIM into their curriculum. However, as BIM is a new concept in construction engineering, many higher education institutions have a problem integrating BIM. Therefore, the paper proffers a syllabus to integrate BIM in a vocational higher education institution. The research methodology follows the Tyler model of curriculum development. It started with a review of prominent BIM integration into higher education research. Then, discussion with BIM practitioners from the industry to acquire information on current BIM-related job specifications in Indonesia. The team teacher then discussed and analyzed the results to create an initial syllabus. Further, the students' performance and feedback are observed during two years of course offering from 2019 to 2021. Improvement of the syllabus is based on observation and feedback results. The progress has increased students' performance in the BIM course. The students' performance is excellent even though the course was offered online due to a pandemic.

Analisis Waste Dengan Pendekatan Lean Construction Pada Proyek Pembangunan Jembatan Sungai Manggar Balikpapan

According to Abduh (2007) Indonesian construction industry still has inefficiency in its implementation, which is because there is still a lot of waste on the execution. Efforts to prevent or reduce waste on the project will increase the contractor's profits and minimize the negative effect to environment (Julisa et al., 2019). One method that can be used is lean construction. lean construction has the main objective of continuously increasing production efficiency and eliminating all waste. In this study, a waste analysis using a lean construction approach was carried out which had the most influence on the Manggar River Bridge project. This study uses descriptive analysis of percentages with the aim of describing the condition of the phenomena of the variables and indicators being analyzed. After doing the analysis, it was obtained Waste Lean Construction The most influential on the Manggar River Bridge Project is Waiting with work activities stopped due to bad weather (Waiting) with an impact on this project 131 hours of work or 13.1 working days or the equivalent of 1.79% of the total working days cannot be done due to bad weather.

Development of Concrete Material Technology in the context of supply - demand based on geographical aspects

The Indonesian construction industry is one of the leading sectors with significant contributions to economic growth. A current major issue in the industry is to strive for sustainable development focuses on three aspects, social, environmental, and economical. The use of technology, especially concrete material technology, is one of the supporting factors to achieve the goal. Concrete material usage, with cement as the main component, is quite prominent in the industry, supported by Indonesia’s top 12th cement producer globally with a 2,05% contribution of the world’s total cement production. However, the industry performance in each part of Indonesia also needs to be observed, considering that Indonesia has numerous islands. This study aims to evaluate the landscape of technological development of construction material regarding the supply-demand from geographical dimensions. This supply-demand analysis can consider policy strategies to support sustainable development programs. The data used in this study are derived from the production and consumption aspects of concrete material with an economic approach. The study shows the relationship between the development of concrete construction technology in terms of supply and market conditions. In addition, this study discusses the sustainable aspect of concrete material technology in the context of the trend of cement usage.