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CPM IMPLEMENTATION IN INDONESIA

Oleh : Ir Darma Tyanto Saptodewo MT, MBA, MPU (IAMPI)


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CPM IMPLEMENTATION IN INDONESIA
I. CONSTRUCTION SERVICE PROBLEMS IN
INDONESIA.
1. Construction services company, a contractor and consultant service provider rarely
can develop and survive in the long term. Even if it survives, it is rare that it can grow
and develop in business, except for companies owned by the state (BUMN) because it
does get special treatment. This makes us aware even though the construction work
package is relatively large but the benefits obtained in the percentage are relatively
small, only around 2 to 4 percent of the contract value.
2. Construction services are basically an activity that is very complicated and full of
challenges, various problems that must be faced, full of risks and difficulties and always
up and down depending on the leader who has advantages in his era.

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3. Changes in regulations that move from year to year, especially related to
procurement systems, make construction service companies must always
be responsive and devote a large amount of energy to keep up with
regulatory changes. It should be noted that until now the position of
contractor and consultant service providers is still on the weak side of the
contract that should be balanced.
4. The presence of PM and CM companies in the activities of
construction services is underestimated by stakeholders, assumed to be
unprofessional and considered not to help the success of a construction
project. So the payment rates of PM and CM companies are relatively low
compared to the tasks and functions that must be held accountable by the
PM or CM company.
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5. IAMPI in collaboration with CMAK and assisted by HAMKI
will strive to revive the profession of PM, CM and supervision
consultants with the aim of improving quality and optimization
in the construction project management process so that overall
construction products and processes in Indonesia are superior
and competitive.
6. In order to facilitate the nomenclature between PM and CM,
CPM nomenclature is proposed for efficiency and replication of
certification in Indonesia.

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II. CONSTRUCTION SERVICE BUSINESS
DEVELOPMENT IN INDONESIA.
A. Period 1950-1965.
1. Starting with the takeover of Dutch companies for a moment and relatively there
is no management learning process from Dutch personnel to Indonesian personnel.
Because it was carried out by force in a fast time, the science and relative skills were
also taken away.
2. But it was noted that the success of building the Bung Karno Stadium with
technical assistance from Russia, Semanggi Bridge, Istiqlal Mosque, MPR-DPR
Building (Conefo Building) and other monumental buildings.

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B. Period 1966-1985
1. In 1975 the first toll road built by Jakarta Bogor was built by a Korea-
Hyundai contractor with very good results. Relatively up to now is the
best quality highway in Indonesia.
2. In 1979, trying to compete in the Middle East formed a consortium
of Indonesian contractors, with results that were not good and even
failed and suffered losses of around 200 million USD.
3. The failure of the Indonesian consortium while competing in Saudi Arabia is due to:
• Does not master and understand engineering contracts.
• Weak in management of procurement of human resources, equipment and materials
• Not yet familiar with project management, and MP or MK not taught in universities. Indonesian
contractors usually work with the foreman system, while abroad are forced to manage man / day or
people per day.
• No field surveys are carried out for initial preparation and adequate initial studies related to
location, for careful planning.
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4. Ending with resolutions by third party liabilities, resolved by third parties and
contractors risking any costs needed to complete the work carried out by third parties
in this case Korean contractors.
5. Unfortunately the documentation of failure and success analysis is not done, so that
the experience that is very valuable to be studied cannot be used as a reference to
improve Indonesia's construction activities in the next stage.

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C. Period 1986 -1998
1. Around 1988, a national company had the opportunity to build a building in Brunei,
but the results were also not encouraging because cases of weakness experienced in the
Middle East occurred again in the Brunei project. Failure is mainly in the management
of procurement of human resources, so the project was completed by construction
workers from Vietnam.
Note: there are no official reports and studies related to the failure of the project to be
used as learning nationally.

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2. The success of constructing the Cawang
Priok toll road overpass from 1987 to 1990 by a
consortium of local companies gave rise to the
spirit of accepting overseas work.
In 1990, a consortium of national companies
was formed to work on toll roads in Malaysia.
The result is that the quality is very good, but
business is forced to lose because the definition
of a lump sum contract that is not prepared, is
not well studied and understood.
Note: a document is also not made that records
all successes related to quality and financial
difficulties (cash flow) that occurred at that time
to be used as learning for national interests.
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3. In 1996, one of the leading state-owned
companies in the field of toll roads worked
on toll highways in the Philippines. Because
basically the toll road construction in the
Philippines uses the sosrobahu method
which is practically the same as that already
done in Indonesia, then the project is well
done in terms of cost, quality and time.
Only because of the economic crisis in
1998, payments to contractors were paid in
installments of up to about 6 years, but the
contractor benefited because the contract
price was calculated in US dollars and also
calculated interest related to the delay in
payment.
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D. Period 1998-2018.
1. This period was recorded as the birth of UUJK No. 18 of
1999 to unite the common goals of reforming regulations
for the advancement of the world of construction in
Indonesia.
2. Also marked the birth of IAMPI in 1998 which tried to
implement the management project principles consistently in
order to improve the quality of construction in Indonesia.
Since 2001 IAMPI has organized a management project
training system and certified certification to adopt a
developing system in Australia. The training participants
were dominated by construction BUMN personnel.
3. Participants in management project training held by
IAMPI were mostly followed by construction service
providers both BUMN and Private, while CM consultant
service providers especially in the field of building, training
and certification were organized by HAMKI.
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4. Businessly since the economic crisis in 1998, the government policy prioritizes the
development of contractor service providers in SOEs. At present the government has
succeeded in raising the SOE (State Owned Enterprise) contractor service provider, so that in
some conditions it is easier to use SOEs Contractors to work on strategic projects to achieve
the acceleration of national strategic project targets.
5. In this period it also needs to be recognized that the national ability to work on large projects
by implementing a project management system is almost right and with the right procedures.
6. But especially in the field of safety there are many violations of procedures that need to be
examined in depth why there have been so many construction accidents over the past 2 years.
7. Also noted the success of getting the opportunity to compete and get several work packages
abroad, namely in Algeria, Libya, Saudi Arabia, Qatar, Dubai and others. But once again there
is no national document that records all the successes and disadvantages of Indonesian
companies as learning materials for future system improvements and especially as provision for
competing to create added value in the construction sector in the global era.
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E. Period 2019 - 2040.
1. The time for the construction industry in Indonesia to
reach its golden age, to fulfill the record of zero accidents,
to obtain excellence in terms of quality, safety and
construction safety.
2. IAMPI will cooperate with associations related to
Construction Project Management to apply CPM rules and
procedures precisely and consistently.
3. CPM rules have been tracked and an agreement between
IAMPI and CMAK was made to establish a standard CPM
procedure. The CPM procedure standard is expected to
optimize added value in the construction process.

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III. OBSERVATION OF CPM IMPLEMENTATION IN
NATIONAL STRATEGIC PROJECTS
1. CONTRACT MANAGEMENT
Some of the problems faced in the field:
1. The audit officer / supervisor does not
understand the essence and meaning of the
lump sum contract.
2. General costs included in the contract,
especially managerial staff are requested to be
eliminated, even though the form of the
contract is a lump sum.

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3. The technical specifications according to the owner's request are improved according
to the development of the security requirements of the structure with the new
regulations, but a solution that is not beneficial for parties related to design and build
contracts is basically a lump sum contract. In this case the owner also does not
understand the philosophy of the lump sum contract.
4. The technical audit is carried out 3 years after the handover of the work and building
construction has been used. In this case the service provider contractor is forced to
issue a check and technical test fee, which is certainly not included in the project cost
risk calculation. If this is indeed considered a standard procedure in the construction
audit process, it should be included in the document tender that the service provider
contractor must allocate the funds needed for technical audit at any time by the
authorized institution up to 10 years according to the building failure according to
UUJK.
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2. MANAGEMENT OF STAKEHOLDERS.
Observation of several problems that
occur in the field:
1. Weak coordination between ministries
/ agencies / institutions / regions.
2. Lack of communication between
projects, authorities and the community.
3. Especially for projects in cities that
are densely populated, there is a lack of
coordination in terms of identifying
specific shelter locations that require
attention and / or corrective action by
the project manager.
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4. Not yet maximally implemented by stake holder management, that a
project must be completed according to the agreed plan. This commitment
must be followed by the consistency of stakeholders related to
implementing the program in accordance with agreed plans and
completing the target activities in accordance with their respective
functions and responsibilities.
5. Weak integration of good teams. contractors, design consultants, CM
consultants or supervision consultants to determine and decide on other
goods, materials and services that are in accordance with contract
specifications or relevant standards, standards of implementation, other
relevant international criteria or standards.
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6. CSR plans are not prepared carefully and deeply, especially in
terms of financing. Projects that are located close to residential
areas especially in urban areas often cause problems due to
politicization, therefore the problem of communication with
local residents as part of stakeholder management is a must.
7. Delays occur, among others, due to coordination among
project stakeholders that still need to be improved. Contractors
are expected to be more active and intensive to urge decisions so
that delayed work can be carried out immediately.

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3. RISK MANAGEMENT
Observation of several problems that
occur in the field:
1. Delay in the delivery of the field.
2. There are often delays in the clusters
that must be released.
3. The Ministry of Transportation
requests not to close or keep the opening
of the lane needed for construction
activities, so as not to obstruct traffic.
4. The existence of new regulations
related to the security of construction
structures. 20
4. QUALITY MANAGEMENT
Observation of weaknesses that occur:
1. Quality in the quality of workmanship, not achieving the required concrete
quality.
2. Pavement thickness that does not conform to the specified specifications.
3. Errors in reinforcement design / ground talud (Retaining Wall).
4. Negligence in implementation on the field.
5. The quality of marble floors is below standard.
6. Demolition of formwork that does not follow procedures.
7. Material of steel, concrete iron, sand, stone etc. that do not meet
specifications.
8. Irregular window frame anchoring.
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5. SAFETY MANAGEMENT
Observation of weaknesses that occur:
1. It is necessary to apply consistently the rules and regulations related to OSH
(Occupational safety and health), OSH requirements and standards in the feasibility study
process, preliminary / basic design, detailed engineering design, and tender documents, as
well as in the implementation of construction.
2. There needs to be integration of laws and regulations so that in its implementation it
does not cause inconsistencies that have an impact on accidents and losses for workers,
users and service providers.
3. It is necessary to think about improving the standard of SMK3 / OSHA (Occupational
Safety and Health Administration) as a requirement for consultants, contractors and
subcontractors.
4. The need for the implementation of OSHA in all cycles of construction activities, as
described in the scheme. 22
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III. RECOMMENDATIONS:
1. In-depth studies need to be conducted
regarding all the problems that have been
faced by construction service companies
in Indonesia, records of successes and
failures that have occurred.
Re-analyzed what, why and how to find
solutions to solve all construction
problems in Indonesia related to science,
engineering, management and culture.
This is to eliminate the possibility of the
same error occurring on the same
problem.
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2. Strengthening the system and
implementing Construction Project
Management (CPM) in Indonesia,
resulting in guaranteed processes and
construction products in Indonesia.
3. Fostering and providing clear
functions and responsibilities to CPM
consulting companies to improve the
quality, efficiency and effectiveness of
construction work. This will increase
professionalism in the field of CPM
consultants. 26
4. The management system that develops in
each company should be improved following
the development of the IT system.
To control the movement of material
transport and the position of project staff,
especially related to safety and construction
quality, GPS system technology, CCTV
cameras and mobile phone cameras can be
used.
This technology can control every
movement in the project, discipline using
APD/PPE (Personal Protective Equipment)
security equipment, safety net etc. and all
movements that endanger security can be
anticipated in real time.
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5. Currently construction workers who
are relatively experienced and have full-
time assignment status are not optimal,
even if they are utilized only as
advisors whose duties and functions
are unclear.
Construction workers who are
relatively experienced and aged around
50 to 80 years or more (depending on
the physical condition of each
personnel), should be recruited as
CPM experts who have clear duties
and functions as agreed in the
construction contract.
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Reference
1. CPM Tasks CMAK-IAMPI Checklist for Pasar Rumput Housing Apartment project.
2. Document reports on the Grass Market Flat Project.
3. Report document on the Jakarta - Cikampek elevated Toll Road Project.
4. Observation results of the implementation of high-level construction of SMK3
SMK3 grass market on October 23, 2018, Ir. M. Mushanif Mukti, MKKK, CSP.
5. Study of the IAMPI team on the Rumput Pasar Rusun project & the Jakarta -
Cikampek elevated Toll Road Project, Ir. Soeryanto M. Diwirjo, Ir. Hoetomo DW. , Ir.
Bambang Heru P. , Ir Darma Tyanto S.
6. Kualanamu Airport project report document.

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THANK YOU

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