ANALYTICAL STUDIES OF CHANGES IN CONSTRUCTION PROJECTS VALUE USAGE BASED ON REGULATION OF THE MINISTER OF PUBLIC WORKS AND PUBLIC HOUSING NUMBER 7 OF 2019 ON THE GOVERNMENT CONSTRUCTION MARKET IN BANDUNG CITY

• Main Author: Hawari, Kasyfu
• Format: Theses
• Language: Indonesia
• Subjects: Teknik (Rekayasa, enjinering dan kegiatan berkaitan)
• Online Access: https://digilib.itb.ac.id/gdl/view/52981
• Institution: Institut Teknologi Bandung

The publication of the Regulation of the Minister of Public Works and Public Housing No. 7 of 2019 where there is a change in construction projects value usage from the constraints of the old to the new limits cause difficulties because not all states in Indonesia are able to apply this regulation. This is due to the characteristics of the construction market at the regional level can not be equated with the construction market at the national level. In addition, on the construction market at the regional level occurs the phenomenon of the difficulty that occurs by the service provider in working out a project up to Rp 2.5 billion, even until the failed contract and the legal problem (Ramli, 2019). This resulted in by increasing the limit value of the construction projects on the local level, many service providers have not been able to adjust the ability to carry out their work to the limitations. Even so, the City of Bandung has implemented this limitation according to the latest regulations in 2019. However, there was a significant decline in demand after the enactment of the packaging construction work based on the Regulation of the Minister of of Public Works and Public Housing No. 7 of 2019 in the Bandung City. The paper is organized to determine the limits where that is more appropriate for construction market in the Bandung City. Studies will be conducted related to changes in construction projects value usage based on the new regulations and the old regulations (LPJK No. 3 Year 2017) from the two perspectives of supply-demand (service provider-service user) through secondary data from LPSE Bandung City and LPJK West Java. Methods used in this study are Herfindahl-Hirschman Index, Concentration Ratio, descriptive statistics, and cluster analysis. The results show that for the construction market in Bandung City, the segmentation of the market from the perspective of supply-demand is leading to limitation according to the old rules so the limit that refers to the old rules more appropriate to be applied in Bandung City.