State Financial Losses in Public Procurement Construction Projects in Indonesia

Abstract

To sustainably eradicate corruption, extraordinary efforts are needed particularly in the context of construction projects. In this study, the state losses in government-funded construction projects in Indonesia is analyzed. Research data were collected through field observations for types of work that were not completed per technical specifications. Data analysis was performed using descriptive statistics. The results indicate that structural work was responsible for 98.70% of total state losses. The top three state losses were found to be associated with concrete, roads, and front stonework, and the values are 40.40%, 28.43%, and 18.23% respectively. Loss in architectural work was the smallest (1.30%). The outcomes of this survey offer a knowledge basis for law enforcement authorities and construction project supervisors to pay more attention to projects involving concrete structures, rigid pavement structures during road construction, and stonework.

Keywords

• state financial losses
• infrastructure project
• corruption