COMPETING MARKET LEADER IN INDONESIA’S CONSTRUCTION INDUSTRY

Abstract

The growth of the construction industry in Indonesia is constantly bearing straight to its economic growth and contributes by more than 10% to the country's gross domestic product in the period 2015-2020. The construction market share in Indonesia is dominated by large contractors who control 85% of the total projects even though they are only 0.96% of the total population, while the smaller contractors only control the remaining 15%. Smaller companies only select a project based on their experience and colleagues’ recommendations. It is getting worse because the decision-makers never consider any method to assist the decision-making process as they do not have sufficient knowledge, then they should face some losses which cost big amounts of money compared to their companies’ size The use of AHP on this research will help the smaller contractors to take better decision making yet minimizing their chance of failure and risk. The objectives of this research are to determine the factors that significantly influence project selection in the construction industry and to provide recommendations of the project selection for the construction industry. This research aims to support the smaller contractors to utilize their chance in project selection in order to compete with the big companies. The research will use focus group discussion between the directors of several construction companies as they have full responsibility in the company's decision-making process and are used to going straight to the field while also doing the bidding.