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The Indonesian Construction Law: Challenges toward Globalization

Soemardi B.W.a, Wirahadikusumah R.D.a

a Faculty of Civil and Environmental Engineering, Bandung Institute of Technology, Indonesia

[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]Construction industry has for long been the backbone of Indonesian economic and social development. Since the early days of modern era of 1900s, during the colonization, the Dutch engineers has brought in and introduced the technology as well as professional practices of the industry to the area. Until 35 years after proclaiming its independence in the 1945, Indonesia has virtually yet to have its own national regulation concerning the construction industry, during which the only known construction legal reference was the colonial inheritance of the Dutch’s AV41. In that period the construction industry was dominated by the government role in both providing the infrastructure and regulating the industry. The political reform of 1998 put Indonesia into a new governance paradigm, which in turn also affected practices of the construction Industry. The first Indonesian Construction Law was put into effect in 1999, which was then followed by three government decrees. The three government decrees address issues relating to the business and role of construction society, the practices of cons truction industry, and construction industry development. This new set of legal construction standard of practices was established in response to increasing demand of local autonomy and global competition challenges. Under this regulation the role of centralized government in infrastructure and construction industry has shifted to allow more participation of private sector and the community. Among important issues addressed in this regulation includes governance, professionalism, and the role of society. This paper discuss the rationale behind the development of the Indonesian Construction Law, the threats and challenges that follow during the last decade of implementation, as well efforts that have been carried by the government and the industry. In particular this paper will discuss three government decrees and their impact to the national construction industry. © RICS.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Construction standards,Global competition,Globalization,Governance,Indonesia,Private sectors,Professional practices,Social development[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Construction law,Globalization,Governance,Indonesia[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]