LEVEL OF COMPETITION AND CAPACITY OF SMALL SIZED CONTRACTORS IN BANDUNG RAYA REGION IN PUBLIC INFRASTRUCTURE DEVELOPMENT

• Main Author: Prabowo, Adhi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46731
• Institution: Institut Teknologi Bandung

The contribution of the construction sector to Indonesia's Gross Domestic Product (GDP) is 10.36% or ranks 4th after the industrial, agricultural and automotive sectors. (BPS, quarter III / 2018). There has been a buildup of construction service business entities, especially in the classification of small contractors. The number of contractors with small sub-qualifications in Bandung Raya area, which includes the City of Bandung, Cimahi City, Bandung Regency, and West Bandung Regency reached 4,100 companies in 2016. This number represents 84.18% of the total number of contractors in the Greater Bandung area. According to the General Chairman of Gapensi "currently around 87% of the construction market share is still controlled by large contractors, whereas for local and small contractors only controls 6% of the construction market in Indonesia "(CNBC Indonesia, 2018). Thus, small contractors in Bandung Raya area must be able to compete for projects for the construction segment with a project value of up to 2.5 billion rupiah in accordance with the conditions set by the LPJK. This paper is structured to be able to identify the factors that influence the level of competition and the capacity of small contractors in public infrastructure work in Bandung Raya area. There are several methods used in identifying the level of competition and capacity of small contractors in this study including Porter's five forces, HHI and CR. The results show that the construction industry market structure in the construction, maintenance and improvement of roads is a monopolistic competition market and its capacity can be said to not show a significant increase.