Evaluation Study on Existing Condition of Indonesian Construction Industry : How to Improve Performance and the Competitiveness

The growth of construction industry in Indonesia is now running slowly, compared to other industries. This slow growth is caused by the industry’s lack of efficiency. Such a drawback leads to inability of local construction companies to compete at international level. In the ever growing international competition the Indonesian construction industry must find ways to compete in an even competitive open global construction market. The inefficiency occurs because the characteristic of construction projects are in the state of constant changes. This is assumed as source of problems in the Indonesian construction industry because it does not cope with the adverse effect of changes, which is often causing poor performance result such as high execution fund, project execution delay, conflict among parties, and at the end causing high level of inefficiency. A profound study is needed to improve the efficiency of construction project delivery systems. To do this study, existing conditions of the construction industry in Indonesia should be evaluated first. Results of this evaluation expectantly can give a clearer figure of existing conditions of the construction industry in Indonesia and give direction in the next research to improve its performance and the competitiveness.