Construction in Indonesia: Looking Back and Moving Forward

✍ Scribed by Toong-Khuan Chan (editor), Krishna Suryanto Pribadi (editor)

• Publisher: Routledge
• Year: 2022
• Tongue: English
• Leaves: 173
• Series: Routledge Research Collections for Construction in Developing Countries
• Edition: 1
• Category: Library

✦ Synopsis

https://www.routledge.com/9780367712174

Construction in Indonesia presents an in-depth analysis of the construction sector and suggests pathways to further improve the performance and efficiency of the industry. Experts in economics, management, and engineering have examined all aspects of the Indonesian construction sector to provide readers with unique insights into the workings of this important sector of the economy, and to analyse how both economic growth and policies have contributed to Indonesia’s development and how lessons learned can be used to guide future growth.

Indonesia’s construction industry is set to grow rapidly after a decade of extensive investments in public infrastructure projects emphasizing new transportation, utilities, and social infrastructure buildings. The book is divided into two sections: Looking Back will focus on a critical analysis of the construction industry, its achievements and its failures, and the impact of the efficiency of the sector in bringing about improvements to overall quality of life. The primary purpose of the second section, Moving Forward, is to suggest directions and emphases for future action by the government of Indonesia (and other stakeholders) to promote the continued development of the construction industry.

This book will be a valuable resource for policy makers in government and industry and other stakeholders to obtain a succinct view of the sector in the archipelago and to appreciate its potential to bring about improvements to the quality of life in Indonesia.

✦ Table of Contents

Cover
Endorsement Page
Half Title
Series Page
Title Page
Copyright Page
Table of Contents
Preface
List of contributors
Chapter 1: Indonesia and National Development Planning
1.1 Brief History of Indonesia
1.2 System of Government
1.3 Economy, Monetary, and Fiscal Policies
1.4 National Development Planning
1.5 Long-Term Development Planning
1.6 Medium-Term Development Planning
1.7 Accelerating Economic Development
1.8 Debottlenecking Activities
1.9 Summary
References
Chapter 2: Construction Industry and Governing Legislation
2.1 Introduction
2.2 National Infrastructure Planning and Demand for Infrastructure
2.3 Industry Structure
2.4 Distribution of Construction Output across Indonesia
2.5 Statistics of the Construction Services Sector
2.6 Advancements in the Indonesian Construction Industry
2.7 Construction Services Act No. 18 of 1999
2.8 Construction Services Act No. 2 of 2017 and Ministerial Regulations (Peraturan Menteri) PUPR No. 9-2020
2.9 Job Creation Act No. 11 of 2020
2.10 Industry and Legislative Challenges
References
Chapter 3: Construction Companies
3.1 Introduction
3.2 Construction Companies in Indonesia
3.3 State-Owned Construction Companies
3.3.1 PT Adhi Karya (Persero) Tbk (IDX:ADHI)
3.3.2 PT Hutama Karya (Persero)
3.3.3 PT Nindya Karya (Persero)
3.3.4 PT PP (Persero) Tbk (IDX:PTPP)
3.3.5 PT Waskita Karya (Persero) Tbk (IDX:WSKT)
3.3.6 PT Wijaya Karya (Persero) Tbk (IDX:WIKA)
3.4 Private Construction Companies
3.4.1 PT Acset Indonusa Tbk (IDX.ACST)
3.4.2 PT Nusa Raya Cipta Tbk (IDX:NRCA)
3.4.3 PT Total Bangun Persada Tbk (IDX:TOTL)
3.5 Infrastructure Asset Company – Case of PT Jasa Marga Tbk
3.6 Foreign Companies
3.7 Consulting Firms
3.8 Financial Performance and Discussion
References
Chapter 4: Construction Workers and the Informal Sector
4.1 Introduction
4.2 Employees of Construction Companies
4.3 Professionals in the Construction Industry
4.4 Certification of Professionals and Skilled Workers
4.5 Worker Wages and Productivity
4.6 Human Resource Challenges and Issues
4.7 Informal Employment and the Informal Construction Sector
4.8 Characteristics of Informal Employment in Indonesia
4.9 Informal Construction Companies
4.10 Summary of Challenges and Policy Considerations
References
Chapter 5: Construction Supply Chain
5.1 Introduction
5.2 Supply Chain Management Concepts in Construction
5.3 Role of the Central Government
5.4 National Cement Industry
5.5 Asphalt
5.6 National Steel Industry
5.7 Precast Concrete
5.8 Heavy Equipment and Machinery Supply Chain
5.9 Implementation of Supply Chain Management in Construction Companies
5.10 Balance of Demand and Supply for Public Projects
5.11 Summary of Supply Chain Issues in the Industry
References
Chapter 6: Financing of Infrastructure Investments
6.1 Infrastructure Finance
6.2 Financing from the State and Regional Budgets
6.3 Public Non-Budget Investment Financing (PINA)
6.4 State-Owned Enterprises
6.5 Private Participation in Infrastructure Finance
6.5.1 Public–Private Partnership (PPP)
6.5.2 Indonesia Infrastructure Guarantee Fund (IIGF) in 2009
6.5.3 Indonesia Infrastructure Finance 2010
6.6 Innovative Sources of Finance for Infrastructure
6.6.1 Dana Investasi Real Estat (DIRE) 2012
6.6.2 Limited Participation Mutual Funds 2017
6.6.3 Infrastructure Investment Fund (Dana Investasi Infrastruktur – DINFRA) 2017
6.7 Construction Industry’s Access to Finance
References
Chapter 7: New Capital City
7.1 Introduction
7.2 Jakarta and the Island of Java
7.3 Vision for a New Capital City
7.4 Economic Cost and Benefit Analysis
7.5 Public Response to the New Capital City
7.6 Risks and Rewards
References
Chapter 8: Education, Training, and Certification
8.1 National Education System in Indonesia
8.2 Vocation Education and Polytechnics
8.3 Universities and Institutes
8.4 Training of Construction Workers
8.5 Training for Construction Professionals
8.6 Licensing, Certification, and Registration
8.7 Issues and Challenges with Certification for Professionals and Skilled Workers
8.8 The Way Forward
References
Chapter 9: China’s Belt and Road Initiative in Indonesia: A Case Study of the Jakarta–Bandung High-Speed Rail
9.1 Introduction
9.2 Jakarta–Bandung High-Speed Rail (HSR)
9.3 Transit-Oriented Developments
9.4 Competition between Japan and China
9.5 Project Delays
9.6 Influx of Chinese Workers and Construction Accidents
9.7 Motivations for Belt and Road Investments, Project Finance, and Economic Viability
9.8 Prospects for the Future
References
Chapter 10: Strategies to Improve the Indonesian Construction Industry
10.1 Construction Industry Development
10.2 A Model for Construction Industry Development
10.3 Recent Construction Industry Development Initiatives in Malaysia and Singapore
10.4 Development Pathways for Indonesia’s Construction Industry
10.5 Analysis of Main Issues
References
Index