Empowering tllc National Engineering, Procurement and Construction Industry in Industrial Development

• Main Author: Soewondo, Prapanca
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41830
• Institution: Institut Teknologi Bandung

The role of the national engineering, procurement and construction (EPC) industry in delivering services in industrial construction, particularly the large scale and technology intensive industry is observed to be limited and constrained. The situation stems from limited capacity, capability and experience that the national EPC industry has, and the limited opportunity that are available to them in the construction activities of industrial facilities. With the increasing investment and technological advances in conjunction with the investment, the demand for higher level of capability and experience also increases. Consequently the growing demand for industrial construction services can not be responded by the national EPC industry. Only foreign EPC firms are capable of capturing the opportunity. Such is not a desired situation, and efforts to alleviate that undesired situation should be made. Onc of' the enbrts is to remedy the situa~ion by way ol'cmpo\vcring llic national EPC industry community. The study reported in this thesis is aimed at finding viable ways and means whereby the national EPC industry can be empowered and strengthened, leading towards better competitiveness in both domestic and international market. The main queslion being addressed is : "In what i v ways the national EPC industry can be empowered and able to rake up a bigger role in providing services for the construction of industrial facilities ?'. By way of identifying the i~nderlyingf actors that determine the ability of the EPC industry in capturing the available opportunities, the present condition of the national EPC industry and the role that it has been able to contribute are critically reviewed. Based on that, further analysis is made to develop a qualitative model of tlie state of the national EPC industry, whereby the salient features of the system structure are indicated, and the interrelationship amongst the stri~cturale lements are described. Using the model as an analytical instrument, paths for adjustnlents tliat could lead to the empowerment of the national EPC industry are identified. Through the described analytical approach, it can be pointed out that 'two major undertakings are necessary to be pursued : a) tlie national EPC industry have to improve their capability in establishing beneficial partnership with foreign EPC firms; b) the government needs to develop and establish affirmative action policy, i.e. one that can establishes a business climate whereby the national EPC industry can be better facilitated to access to the opportunities that the domestic market offers. To complement and enrich the information base in developing strategies out paths for strengthen the national EPC industry, it is recommended that fi~rtlier studies be made on : a) understanding the nature of global competition in the area of EPC services, and b) establishing stronger links between the national EPC industry and the technology development institutions of the country.