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Sustainable indonesian construction industry: Serious challenges and development strategy
a Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, 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]The Indonesian construction industry is expected to play a very important role in this country’s economic growth which, according to the government’s projection for the next five years, is estimated to reach, in average, 6-7 % per year. To achieve this economic growth a contribution of 6- 7% of annual GDP from the construction sector is required. Meanwhile, the global market obliges the players in this industry to be highly competitive. To face these challenges, a healthy, strong, and sustainable construction industry, which is not the case of the Indonesian construction industry at this moment, is needed. A strategy to develop a sustainable Indonesian construction industry is devised through a research sponsored by the Department of Public Works. In this research, a survey to collect secondary and primary data on the industry’s environment conditions and an analysis of related regulations are conducted to support problem and strategic issues identification. Focus Group Discussions are carried out to collect opinions of the industry’s stakeholders as part of the strategy formulation process. Influence diagrams are used to represent the interaction of identified elements which have caused low productivity and mediocre competitiveness of the Indonesian construction industry. The identification process reveals that these elements are mainly related to the structural aspects of the industry and include: lack of good governance, undeveloped capacity of the professional community, unsuitable public participation scheme, unsuitable playing field structure, and weak vertical and horizontal inter-departmental coordination on the government’s side. A strategy to develop a sustainable Indonesian construction industry is devised through this research and consists of three stages, i.e. stage 1: establishment of strong leadership, and solid legal as well as institutional framework; stage 2: institutional capacity building, improvement of synergy among stakeholders, and enhancement of professionalism; stage 3: establishment of a healthy and competitive Indonesian construction industry.[/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]Capacity building,Construction sectors,Department of public works,Development strategies,Economic growths,Environment conditions,Focus groups,Global market,Good governance,Identification process,Influence diagram,Institutional framework,Playing fields,Primary data,Professional community,Public participation,Strategic issues,Strategy formulations,Structural aspects,Sustainable construction[/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 industry,Development strategy,Good governance,Institutional capacity building,Public participation[/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]