COMPARATIVE STUDY OF CONTRACTOR BUSINESS LICENSING SYSTEMS IN THE CONSTRUCTION INDUSTRY IN INDONESIA WITH AUSTRALIA AND JAPAN

• Main Author: Johansen Ridawaputra, Samuel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/81608
• Institution: Institut Teknologi Bandung

The contractor business licensing system plays an important role in the construction industry and the Indonesian economy. The main purpose of this system is to ensure public safety by ensuring that the working business entity has adequate competence and responsibility. This is important to prevent construction failures that can have an impact on public safety and economic losses. With a good business licensing system, it is hoped that construction business entities operating in Indonesia will be able to provide high-quality work results and in accordance with international standards. This study analyzes the contractor business licensing system in the construction industry in Indonesia and compares it with the system in Australia and Japan. This research identifies various problems and challenges that hinder the efficiency and effectiveness of existing systems. Through literature studies, focus group discussions, and questionnaires with various stakeholders, this study finds that the concept of business licensing in Indonesia focuses on certification and registration, resulting in other derivative problems, complex bureaucracy, and poor implementation of contractor business licensing as the main problems and challenges. Therefore, fundamental reforms are needed to improve the quality and transparency of the system. The results of the comparison show that Australia and Japan have more efficient systems with their understanding of the licensing and registration system as well as the concepts of single authority and single fee. These positive factors provide examples of best practices that can be adopted by Indonesia. SWOT analysis is used to formulate short- and long-term strategic recommendations, including relaxation of certificate requirements, capacity building of certification bodies, information dissemination, and development of the OSS-RBA digital platform. This reform is expected to create a more effective business licensing system, support a healthy construction business ecosystem, and increase the competitiveness of Indonesia's construction industry in the international arena. This research provides a strong foundation for policymakers to implement these recommendations and drive a more sustainable and competitive growth of the construction industry.