Analysis characteristic of corruption in construction project in Indonesia

Abstract

The competition among providers of construction services often leads corruption. The purpose of this study was to examine the characteristics of corruption in construction projects in Indonesia. The analysis of 15 (fifteen) cases are conducted by grounded theory method using coding techniques. The results showed that (a) the characteristics of construction projects involved in corruption is dominated by projects which, are owned by government that hire private company as the contractor; happen on infrastructure project; located in Java and Sumatra; (b) the vulnerability characteristics of construction projects involved in corruption are: occurs at construction phase due to contractual violation; sequential acts of corruption is begin with the difference between the volume of work that resulted in payments, which is not in accordance with progress reports; and the parties involved is Committing Officer (Pejabat Pembuat Komitmen/PPK); (c) the characteristics of corruption in construction project are: cause losses of 16-33% of the project value; and prison sentence of 44.8 months with the demands of a fine of USD. 10.660,- (d) the characteristic of the impact of corruption in construction project are: cause construction failure; 73% had an appeal to the High Court level and 33% had an appeal to the Supreme Court.