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EMBRACING THE TUTURT THAOUGH $L}STE*M&ffiELITY

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No. 01/C.ECAR{/I#1014

Sehubungan dcngan diselernsgarakannya *Tho _6eCivil Engineering Conferenc€ in Asia Region (CECAR- 6)" pada tanggal ?0-22 Agustus 2013 di Jakartq dibawah koordinasi

I{AKI &

Asian Civil Engineering eoordinating esuncil (ACECC) dan Fakultas Tekdk Sipil dan Linghmgao

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^bersamaⁱⁿⁱ

kami menerangtan bahwa makalah dengan:

Penulir

:

^Biemo^W'^Socmrrdi,^BambengGocritno, dan Gondo Suhadyo No.

Makrlah :

³⁴¹

Judul

r

^FOLICIESAND PRACTICES IN PROMOTINC TRANSPARANCY

AI{D

CORRI}PTION ENRAI}rcATION IN II\ilX}ITSSIAN CONSTRUETION INDUSIRY.

diterima dan telah ditffbitkan dalam prosiding *The _6e

Civil

Engineering Conference in Asia Region (CECAR-6)". Makalah dapat dilihat ^padaProsiding Digital kami berupa flashdisk yang diberikan kepada peserta seminar dengian ISBN 97 8-602-8605-08-3.

Makalah tersebut tidak tercailtum pada buku program *The _6e

Civil

Engineering Conference

in

Asia Region (CECAR-6f tarena abstrakbaru diterima panitiapada saat pencetakan buku programtersebut.

Atas perhatian dan kerjasarnanya kami ucapkan terima kasih.

Bandung 15 Januari 2013

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. .lalia.iri l?S1*:1rliJ*tlelii

Prof. h.Iswandi Imran !viASc.. Ph.D

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THE 6 ^""

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CIVIL ENGINEERING CONFERENCE IN THE ASIAN REGION

and Annual HAKI Conference 2013

Co-Hosted by:

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ERNATIOf"AL COMMITTEES

_ h-Maan Chang oonkyung Chung

�an.zorig Erdene enichi Horikoshi

= 11aldo Ison -"'an Huu Duy Quoc

avy Sukamta So ,.an Lai Swamy '"-rry Tonkin -:.bert T. Yeung

NIZING COMMITTEES

rxnan

�·andi lmran Chairman

uslinang Moestopo

· ve Secretary am mad Abduh '.iJers

an K. Hadihardaja _ di Apriadi

a Rubiana Widarda

- • • .valudin i-armein Rahman

� ,.,. Nugroho _ ·.antoro Hardjito -��-Jatnika 2::. a sjah Zulkifli

COMMITTEES

LOCAL ADVISORY COMMITTEES

Dradjat Hoedajanto Bigman Hutapea Benjamin Lumantarna lndratmo Soekarno Biemo W. Soemardi

FX. Supartono Priyo Suprobo Bambang Susantono

SUPPORTING STAFFS

Yulius Anthony Florentia Edrea Sofi Wulandini Anita

Arini Fazrin

Eko Budi Wicaksono Ivan Prayudi Fadila Faiza Andreas Ibrahim Getruda Sandika Du ken Marga Turnip

THE 6

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l:M�HAl,;INb I HI: 1-U I

THROUGH SUSTAIN BIL Ht:

TECHNICAL SESSIONS

• Analytical and Design Methods

• Application of Information Technology

• Bridge Engineering

• Building Information Management

• Case Studies and Failure Investigation

• Climate Change and Coastal Management

• Construction Engineering and Management

• Disaster Mitigation, Adaptation, Preparedness Strategies

• Durability and Serviceability of Materials and Structures

• Environmental Impacts

• Geotechnical and Foundation Engineering

• Green Buildings

• Innovative Construction Products, Systems, and Practices and Testing Technology

• Mega Projects

• New Construction Material

• Performance Based Design and Analysis

• Prefabrication Technology

• Recycling of Resources

• Repairs, Retrofitting, and Maintenance

• River Basin Management

• Safety and Reliability

• Standards, Regulations and Codes of Practice

• Structural Health Investigations

• Sustainable Infrastructure/Construction

• TestingTechnology

• Underground Construction Technologies

• Urban Problems

• Wind Engineering

--<:ECAR 10

SPECIAL SESSIONS

• Anti Corruption

• LongSpanBridges

• Tsunami-Lessons Learned from Past Disasters

• Building Information Management

• Precast Concrete Structures

• Disaster Mitigation, Adaptation, and Preparedness Strategies

OTHER PROGRAMS

• Symposium on Asia and Pacific Collaboration of ITS research

• Workshop on Vulnerability and Resilience of Critical Infrastructure Systems in Asia

• Forum on Concrete Model Code

• Asian Board Meeting

• Presidential Session on Infrastructures

SHORT COURSE

• A short course on Earthquake Engineering

• Structural Engineering Softwares-Next Generation

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KEYNOTE SPEAKERS

Djoko Kirmanto

Ministry of Public Works Indonesia

Kirmanto graduated from Gadjah Mada

�si;:y in Yogyakarta and completed his masters in ,no water development at IHE-DELFT in the

_ - ·ands in 1977. He was appointed in 1997 as

... � to the residential development department ac :he Ministry of Public Works during the - -ro administration. Since 2001, he has held the

:;-" airector general of residential affairs at the of Settlement and Regional Infrastructure, erof Public Works.

Gregory E. Diloreto ASCE President 2013

USA

.:: _ Loreto is the Chief Executive Officer of the --·-lTo-wal-a-tin) Valley Water District located in .;aPtan Portland Oregon. He has worked in the v11orks field for 34 years, 17 years as a public d ·ector/city engineer. Mr. Diloreto holds a B.S.

e:e ·n Civil Engineering from Oregon State

�··sity and a Master degree in Public

·�ration from Portland State University. He is . .,,.cd as a civil and environmental engineer and a

· -jonal land surveyor in Oregon. Mr. Diloreto is a n the American Society of Civil Engineers. He ,xi the ASCE Board of Direction 2004-06. He has - €J the 1986 ASCE Edmund Freidman Young -er Award, the 1995 ASCE Oregon_ Section --cling Civil Engineer award and the 2005 ASCE .r::...=,...,,..,...ent Engineer of the year award. In 2003 he

,,ducted into the Oregon State University r;iy of Distinguished Engineers.

YozoFujino University ofTokyo

Japan

He is a professor of civil engineering, at the University of Tokyo, since 1990. He has also served as science adviser (adjunct) to Ministry of Education, Science and Technology, in 2002-2004. Prof. Fujino was a Melchor Chair Visiting Professor, University of Notre Dame, Indiana, USA, in 1997, a Visiting Associate Professor in Asian Institute of Technology, Bangkok, Thailand, in 1987, and a Visiting Scholar, Dept. of Civil Engineering, University of Illinois, Urbana, Illinois, in 1980.

His fields of expertise inlcude bridge and structures, bridge design, bridge aerodynamics, bridge loading analysis, cable dynamics, wind effects on structures, control and monitoring of bridges and tower-like structures, bridge maintenance and management, earthquake effects on structures, nonlinear dynamics, passive control and active control of bridges and tower-like structures, and safety and security of urban environments .

Mete A. Sozen Purdue University

USA

Mete A. Si:izen is the Kettel hut distinguished professor of structural engineering at Purdue University, West Lafayette, Indiana, USA. His research interests include development of professional design codes for reinforced and pre-stressed concrete structures, and for earthquake-resistant design of reinforced concrete structures .

He has received several honors and awards: Honorary Doctorate, Bogazici University, Turkey, 2004; John Parmer Award, Structural Engineers Association of Illinois, 2003; Distinguished Lecturer, Earthquake Engineering Research Institute, 2002; Noel Nathan Memorial Lecturer, University of British Columbia, 2002; Outstanding Paper Award, ASCE Council on Forensic Engineering , 1998; Honorary Doctorate, Johann Pannonius University, Hungary, 1998; Honorary Doctorate, Georgian Technical University, Tbilisi, 1998;

and Illinois Section Structural Group Lifetime Achievement Award, 1998.

Tt-iE 6

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KEYNOTE SPEAKERS

Masyhur lrsyam

Bandung Institute ofTechnology Indonesia

Currently, Masyhur lrsyam is a professor at the Faculty of Civil and Environmental Engineering, Bandung Institute of Technology, Indonesia. His research interests include Soil Behavior, Ground Improvement, Foundation Engineering, Geotechnical Earthquake Engineering, Stability of Slope and Excavation, Soft Ground Tunneling, Offshore Geotechnics, Computational Geotechnics, Instrumentation and Testing in Geotechnical Engineering.

Bambang Susantono

Vice Minister ofTransportation '-d re ia

inisterfor Ministry of

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=-s

^{�:2 ·r.g}I ;15CE) in g 3 251:e of City and ri,, 300 a ' octor of Philosophy -£ -:r?0""5 a1 !�e Graduate Program and is the p�ograf""! coordinator of Master's program in lnf--as:ructure Management in Civil Engineering at the University of Indonesia.

-<ECAR 12

Sang-Ho lee Yonsei University

South Korea

Sang-Ho Lee is a professor in the Department of Civil and Environmental Engineering at Yonsei University, Seoul, Korea. He is the Head of the Civil and Environmental Engineering Department, and Director of the Research. Center for Asset Management of Civil Infrastructure- and Small and Medium Business Promotion Center ofYonsei University.

He has received B.5. and M.S. degrees in the Civil Engineering from Yonsei University (Korea), and Ph.D.

degree from Northwestern University (USA). His former area of expertise was Computational Mechanics such as Meshfree Method and extended Finite Element Method {XFEM), and current research interests are Building Information Modeling (BIM) of Infrastructure and BIM-based Asset Management of Infrastructure. He serves and has served as the committee chair or key member in the areas of Construction CALS-EC, Construction-IT convergence, BIM, International Standards, etc.

Gwo-Fong Lin

National Taiwan University Taiwan

Gwo-Fong Lin is currently a Distinguished Professor in the Department of Civil Engineering at the National Taiwan University. He was the Chairman of the Civil Engineering Department and Director of the 1-tydrotech Research Institute at National Taiwan University. He has received various honors and awards.

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21

15:40-17:20

BANDAA

15:40-17:20

FLORES B

076 100

SCHEDULE

Day2

Chair: HIROSHI MAKINO (JSCE., Co-Chair. SAN� YUP l£E (ICorea Institute ofTechnology_) _________ � ITS-Based Solutions far Urban Traffic Problems in Asia Pacific Countries

H. MAKINO, S. KAMIJYO, and T. OSARA

A Study on the Charar;terifticsand Operational Umitations cf the Portable Reference Equipment Used for 115 Sy.stems Perforrnonce Evolution

5. H. LEE, JC. C JANG, and C. y_ MA

163 Applications Strategy of Information Technology far Smart Transportation in Korea N. C. BAIK, Y. M. KIM, J. H. KI M, and D. W. CHOI

279 A5tµdy an th!! Traff'c FlowCharacterimcs ot Signalized lntersectionsauring S.nowfaJJ S. LE£, Y. SON,J. IM, and S.JU,..

280

6B

124

A St11dy on the Travel Time and Capacity Changes an Expressway by Snawfo/1 S. LEE , Y. SON, J. I M, H. YOO, and S. JUN

Chair: EDIANSJAH ZULKIRI (lnstitutTeknologi Bandung)

Effect of 3-D Welding Imperfection an Ultimate Strength of Welded Structllral M ember (1) -lntrod11ctian of Welding Imperfection for FEM Anolysis-

D. H. PARK

269 Bending Capacity of Glu1cm Timber BeDm A P. USMAN, A. NASUTION, and 5. SU�I

241 Flex11ral Strength of Glued Laminated Timbe r from Sel ected Malaysian Tropical Hardwood N. M. BHKARI, A. A. BAKAR, P. M. TAHIR, and Z. AHMAD

221 An Experimental Study of Bombao as a Hause Retro11tting Material for De11eJ11ping Countries E. SUHHMIOAWATI, W. BOY, R.ADRlADl,arn:I R. ZAMZARE

155 Friction Damper in Traditional Building in Indonesia B. LU MANTARNAand P. PUDJISURYADI

15:40-17:20 6C

FLORES A

Chair. D. H. CHOI {Hany;ing Univer, )

338 Strengthen ing of Steel /-Girder Bridge with Deter iorated RC Slab by Pultruded G FRP I-Girders B. ABDULLAH

190 Sei=ic Retrofit of Existing RC members with CFiRP Grid b y Poly mer Cement Mortar fer Shntcrete K. Y Af..1K, UCHI, s. H f o, K. TA NIGUCHl, ;3nd 5. A KAM URA

206 A Study an the Engineering Properties an Concrete with the Application of Pozzolan ic Material and Waste Tire Rubber Powder

C. J. CHEN, Y. M. TANG, S.S. TSENG, and H. Y. WANG

219 Investigation and Pr.q,osed Structu,n/ RepairforComfuitTunnel aJ Pacal[!)am S.ASAD and M. SUPRAPTO

331 Retrofitting of Bumiminang Hotel Building in Pada ng F. A. !SMAIL, T. BOEN, FAUZAN, A. HAKAM , and ZAIDIR 15:40-17:20

60

SUMBAA

Chair: B. J. CHRlSTENSEN (aASF Constf\lctioo Chemicals)

351 Developing Report Card ta Identify K ey In frastructure Needs and Funding -Km-eon Gase T. S. LEE and S. R. SWAIN

SU5tainable Urban Development in Energy Planning and lmplernenkttion: A Perspective for India among 336 Oeveloping Natioris with Respect ta Developed Nations

J. K. VYAS and A. 0. J. VY AS

025 A New Special Economic Zane (SEZ) Belt -Synchron ized Development far Embracing Asia

R . KATSUMATA

...

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329 SIMPLIFIED ANALYSIS METHOD FOR TI1 JVJl�CF SPAN SUSPENSION BRIDGES

Dong-Ho Korea.

In this study, a simplified ana ⁰¹51: memc.; fu - :0

span suspension bridges under �4i:i.: - lw.:5 s ;;·c;,.r,sed using an equivalent mode. Trie r..oai: -;.::.:;�.:cssj :r':owers and equivalent springs replacing tt1e ;..,soendej parts. The stiffness of the equivalent spr,1:_gs 1s de<"ec based on the parabolic configuration of the cab!e. Dead and live loads acting on the girders of each span are replaced with horizontal and vertical forces acting on the top of each tower.

Then, the equations of the load-displacement relationships of the towers are derived for structural analysis of the equivalent model. Finally, an example bridge model with main span length of 3,000m is used for verification and the resultant values such as horizontal displacements of the towers are compared by using the proposed method and finite element analysis.

330 LARGE-AMP LITUDE VORTEX-INDUCED VIBRATION OBSERVED AT LONG-SPAN CABLE-STAYED BRIDGE AND ITS AERODYNAMIC COUNTERMEASURE

Hiroshi Katsuchi, Yokohama National University, Japan.

Masatsugu Nagai, Nagaoka University of Technology, Japan.

Taishi Yamamoto, Fushiki-toyama Port Office, Ministry of Land. Infrastructure, Transport and Tourism. Japan.

Vortex-induced vibration with large amplitude in the vertical direction often took place at a long-span cable-stayed bridge with the center span of 360 m after the center-span deck closure. The maximum amplitude up to 35cm was observed.

A typical wind condition was a 10-min. average wind speed of 10-14 m/s with an almost normal direction to the bridge axis.

After the report of vortex-induced vibration, field measurement of the vibration was carried out. In addition, a vibration test was also conducted to identify natural frequency and structural damping. As- a result, it was suspected that structural damping (0.014 in log. decrement) lower than the design value (0.02) and a very smooth wind flow might increase the amplitude of vortex-induced vibration. A wind-tunnel test investigation for its countermeasure was carried out. Since aerodynamic countermeasures were preferred to mechanical dampers such as a tuned mass damper, optimum shape and location of flaps was investigated. After trial and error tests, a final solution of flaps was identified to suppress the vibration completely. Field measurement conducted before and after the flap installation proved the efficiency offlaps.

ISBN: 978-602-8805-08-3

331"

At:LROFITTING OF BUMIMINANG HOTEL BUILDING IN P"ADANG

-eorili Anas Ismail, Teddy Boen, Fauzan, Abdul Hakam, and Zaidir.

D¹saster Study Center of And alas University

During the September 30, 2009 West Sumatera earthquake, many engineered-buildings in Padang were damaged and some even collapsed. According to USGS, the epicenter of this earthquake is at 0.7895, 99.960E with 80 km depth and the magnitude is 7.6 Mw. The epicenter is 47 km WNW (292) of Padang, West Sumatera. Many of the damaged buildings were demolished to be subsequently built new ones, while in fact many of them could be retrofitted.

Bumiminang Hotel, an 8-stories r.c. building with r.c. walls as core and masonry walls as partition, is one of the engineered buildings that was damaged and the owners decided to retrofit instead of demolishing. For the purpose, a numerical 3D model was created implementing of the details geometry of the structures. The main analysis was performed by linear

elastic approach and the result is good enough to explain the damages that occured in Bumiminang Hotel.

This paper discusses the structural retrofitting of Bumiminang Hotel which was completed within April 2011 - February 2012.

332 DISASTER MANAGEMENT FOR RIVER FLOODS G.L.Asawa

IIT Roorkee, Roorkee, INDIA GLA University, Mathura, INDIA

There is no nation in the world which may have never experienced a disaster. Any disaster, in its wake, leaves behind colossal tragedy in terms of loss of life and property.

One cannot prevent occurrence of natural disasters. Man

made disasters can, however, be prevented or, at least, the losses minimized. Objectives of any nation or people in this regard should be to be able to forecast (if possible) the occurrence of disaster sufficiently in advance and take all measures to minimize the loss of life and property and restore normalcy, post-disaster, at the earliest. Flood disasters, like other disasters, occur frequently in many parts of the world because of erratic distribution (both spatially and temporally) of rainfall and human beings settling down in flood plains or in the vicinity of river because of their water needs and non-availability of space at higher elevations due to huge population. For river flood disaster management, both structural as well as non-structural measures need to be adopted. This paper gives recommendations with regard to these measures for short-term as well as long-term. These recommendations should help in mitigating the losses following the river floods.

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Proceeding the 6th Civil Engineering Conference in Asia Region: Embracing the Future through Sustainability

ISBN 978-602-8605-08-3

POLICIES AND PRACTICES IN PROMOTING TRANSPARENCY AND CORRUPTION ERADICATION IN INDONESIAN

CONSTRUCTION INDUSTRY

Biemo W. Soemardi¹ and Bambang Goeritno²

1 Associate Professor, Civil Engineering, Bandung Institute of Technology, email b_soemardi@si.itb.ac.id

2 Inspector General, Ministry of Public Works, Republic of Indonesia

ABSTRACT

As an engine of economy, the construction industry plays important role in Indonesia‟s growth, contributing more than 10% to the country‟s GDP and employing 6.4 million workers. Once a government dominated sector, construction has become more opened and more private sector are involved in the execution of various infrastructure construction projects, which contribute to a steady growth of 6,3% in the last 10 years. Despite such promising progress this industry remains tainted by unfair business conduct and other financial leakages.

Though it is still difficult to prove, like in many other developing countries, many believe that bad practices such as kickbacks, bribery, fraud and embezzlement do exist. The political reform of 1998 brought the country into a different manner of governance, where freedom, openness, and public participations are among the key factors in various aspects of public services. That reform also became the starting point for efforts to eradicate corruption and bad business practices, which are then spread out across all public sectors in the country, including construction. The enactment of Construction Law in 1999 has set new standard for construction practices in Indonesia. This law, for the first time, spelled out the important of equality, competency, and accountability of all stakeholders in construction, as well as the role of society at large. As the result, this formerly heavily government regulated sector became more open to public participation and accountable to the society. This paper is to portray the historical changes of the Indonesian construction industry from the perspective of legal and business practices, and the efforts made by in combating corruption and other bad business practices in the industry. This paper will be focusing on the policies and practices implemented by various government institutions, as well as the Ministry of Public Works, and the industry to eradicate corruptive practices in the construction industry.

INTRODUCTION

In Indonesia, fact is that the war against corruption is not new and for long has been recognized as the national problem; even from the time before the birth of this nation until today. Since the verge of the downing of the new era regime, the term KKN (corruption, collusion, and nepotism) has been part of every day‟s topic for Indonesian people, and became part of every day‟s news in the media (printed or electronic).

Today, corruption and how the nation‟s tirelessly efforts to combat such disease, have got more attention than before. Public outcry over corruption has never been as strong as it is today, as corruption practices continue to undermine the economy, widen income inequality and injustice amongst people, and erode almost all of public services. Corruption also impacted business and investment. Risk of corruption does hurt the business. A recent survey by Asian Intelligence (2013) placed Indonesia in the near bottom on the corruption impact to business environment. On the question “To what extent does corruption detract the overall business environment?” Indonesia is rated 8.83 on the scale 0 to 10, with 10 being the worst. Further, the survey also reported a shift on people‟s view on corruption. Instead of blaming the government and civil services, people are more laying the responsibility of corruption problem on private sector, and are considering more internal challenges in managing such problem. This attitude clearly shows that the private sectors are equally responsible in eradicating corruption.

Since the late 50s, countless numbers of laws and regulations, as well as government agencies and NGOs were formed to eradicate corruption practices in the nation. Yet, this problem has never been away, and Indonesia remains rated as one of the most corrupt countries in the world by the Transparency International.

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B.W. Soemardi and B. Goeritno

SS1-14 Prior to the formation of the Corruption Eradication Commission (KPK), at least six corruption eradication agencies were formed in this country. In an attempt to overcome previous failure, in 2003 the government once again formed KPK that functions as to coordinate, supervise, execute, prevent, and monitor overall efforts to eradicate corruption in Indonesia. Since the establishment of this strong anti-corruption agency, progress in fighting corruption seems to be moving into a promising direction. Of all forms, corruption in government and public services are among the worst. According to Anti-corruption Resource Center - Transparency International (Martini, 2012), both bureaucratic and grand corruption are present in Indonesia.

It went on to state that the country‟s weak administrative capacity, low salaries, and the lack of oversight exacerbated the bureaucratic corruption. Moreover, to make matters worse, political corruption seems to be wide spreading, especially at local level where decentralization policies have given more room for local legislators and governments to abuse power.

Construction and procurement of public infrastructure are of no exception, and are prone to corruptive practices. It is already a public secret that government projects are considered the target of corruption and other unfair practices; not only because it involves a very large sum of money but is also lingered with excessive and tedious bureaucratic processes. Along with enactment of construction law in 1999, the government has tried to reduce corruption and other unfair practices by imposing good governance, practices that are more transparent, and public accountability.

This paper attempts to provide a concise reflection on how corruption and other unfair practices have hampered the Indonesian construction industry. A brief description on the extent of corruption, and how the nation fights to eradicate such problem in Indonesia will be presented, followed by an analysis on the policies and actions against corruption and bad practices in the construction industry.

CORRUPTION ERADICATION: A NATION IN STRUGGLE

During the historical progress of this nation, the fight against corruption in Indonesia has been an endless battle. Like in many other developing countries, reliance to anti-corruption agencies has been the main strategy to fight corruption. However this strategy more often failed than succeeded. Virtually all anti- corruption agencies of low- to middle-income countries have been more bark than bite, and in many cases the agencies themselves have been the ones „bitten‟ – and too often were ultimately abolished (Bolongaita, 2010).

Until now, public perception toward government effort to fight corruption remains low, especially when it comes to recovery of state losses. As cited by Schutte (2012), a nationwide survey by Partnership for Government Reform in 2001, that the majority of the respondents would like to get the corruptors‟ assets seized.

Institutional capacity to combat corruption

Between 1950s to the late 1990s, the government of Republic of Indonesia has set up six corruption eradication bodies (Ministry State Secretary, 2013). In its early years of independence, the government of Republic of Indonesia conducted military operation to combat corruption (1957). Until the end of “old order”

regime in 1966, the fight against corruption continued.

During the ruling of “new order” regime, the government launched at least four actions to combat corruption.

The formation of “Corruption Eradication Team (Tim Pemberantasan Korupsi)” in 1967, “Orderly Operation (Operasi Tertib)” in 1977 and “Optimization of State Tax Revenue Team (Tim Optimalisasi Penerimaan Negara dari Sektor Pajak) in 1987 is aimed to eradicate corruption practices, reduced government spending leakages, and at the same time increase government revenue. Again, such efforts seemed to be fruitless, and corruption has even worse than ever. Under the new order regime of former President Soeharto the government appeared to be very dominant, with very little control of the parliament or the Supreme Court. As the result, corruption flourished without any control and/or meaningful resistances form the people. This was an era when many believed that KKN (corruption, collusion, and nepotism) was at the worst of the time. With a strong backup form the military, the government was so centralized, tightly controlling almost every government and public money, that access to the government projects are only limited only to those who had a very close political ties or relatives of the top officials.

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SS1-15 The latest chapter of fighting corruption came after the reformation in 1998. In an attempt to curb corruption, the government formed two teams; “Eradication of Corruption Criminal Offence Joint Team (Tim Gabungan Pemberantasan Tindak Pidana Korupsi - TKPTPK)” in 1999, which later changed into the “Eradication of Corruption Criminal Offence Team (Tim Pemberantasan Tindak Pidana Korupsi – Timtas Tipikor)” in 2005.

Unlike previous teams, which were plagued with ineffectiveness and political influences, the last two teams were considered slightly better since they are under public scrutiny. Until today, the culmination of the nation‟s fight against corruption was the formation of “Corruption Eradication Commission (Komisi Pemberantasan Korupsi – KPK).” In the nation‟s latest attempt in the war against corruption, KPK seems to show some success that has led to the conviction of many high-ranking officials. This independent agency was formed in 2003 under the law no 30, 2002 and soon regarded as the main pillar in combating corruption in Indonesia. This year marks 10 years KPK fight against corruption. The establishment of this agency was a result of the 1998 national reform in all political and government aspects, that seek for an answer for the inability of the existing national judicial instruments to cope with the corruption problems.

Law enforcement institutions such as the National Police and judiciary (public prosecutor - attorney general‟s office and the court) appeared to be incapable to stop the growing number of bad practices and corruption in all sectors of the government. On the contrary, many people believed that those institutions, along with the judiciary system and the government official, are the most affected corruption sectors. According to the survey released by Global Corruption Barometer (2013), the Indonesian still perceives five institutions as the highest corrupt institutions: the police (91%), parliament (89%), judiciary and political parties (each with 86%), and public officials and civil servants. The same study by GCB also revealed that 71% of the respondents felt that corruption has increased in the last 12 month. Further, this survey also revealed that bribery remains common practices, citing that people admitted to bribe the police (75%) and judiciary (66%) for their services. This indicates that corruption is not only played by the institutions, but the people themselves contribute to the worsening of these corruptive practices. Similar result was reflected form Gallup‟s poll, stating that while Indonesia‟s TI CPI country rank has progressed, Gallup Corruption Index score has worsen (Gallup, 2013). Indonesia's police often gain notice as one of the most corrupt institutions in the country, yet according Gallup survey 88% of Indonesia still have confidence in the local police in the city or area where they live. In contrast, only 56% of Indonesian has confidence in the judicial system.

The 1998 reform did not only mark the establishment of the much regarded KPK but also highlighted some other important milestones in the nation‟s never ending war against corruption. Being a non-government institution, the forming of this new agency also created tension amongst the existing law enforcement institutions. The dispute over which institution has more right in handling corruption cases led to several incidences at the national level. Although an agreement has been reached, frictions amongst these institutions remain an issue that KPK has to deal with. On the other side, people‟s concern over the worsening cases of corruption also responded by a strong action of the public. The freedom of press and expression brought forward by the reform also enable to facilitate the private sector to participate in combating corruption. Public accountability and transparency have become new icons in public governance. Many NGOs, such as Indonesian Transparency Society (Masyarakat Transparansi Indonesia - MTI), Transparency International Indonesia (TII), Indonesian Corruption Watch (ICW), and Indonesian Police Watch (IPW), are now actively advocating people against corruption, and playing important roles as powerful watchdogs for the law enforcements. These organizations keep eyes on every public budgeting and spending, as well as procurement, in order to guarantee fair, transparent and accountable public investment and services.

In addition to KPK, other commissions were also formed to supervise the proper execution of the government functions. These independent state agencies are formed by laws or Presidential order, and have the membership of representative from various elements of citizen and government agencies. These commissions includes: Commission of Broadcasting (Komisi Penyiaran Indonesia – KPI), Commission for the supervision of Business Competition (Komisi Pengawas Persaingan Usaha – KPPU), the National Police Commission (Komisi Kepolisian Nasional – Kompolnas), and many other state commissions. While some commissions, are well received many others are being criticized as being ineffective and wasting government funding.

The Commission for the supervision of Business Competition (KPPU) is an independent authority established to supervise the implementation of the Law concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. Independent from the influence and control of the Government and other parties, the KPPU‟s duties includes drafting implementing regulations, conducting examinations of any party alleged to have violated law No. 5/1999, issuing binding decisions, and imposing legal sanction(s) on any violator of the

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SS1-16 law. The KPPU reports directly to the President and the People‟s Representative assembly (DPR). The KPPU that was inaugurated on June 7, 2000 consists of eleven members – including – a chairman and a vice- chairman – whose appointments have been made with the approval of the DPR, with a five-year term of office (KPPU, 2013). Unlike KPPU or KPK that are institutionalized by law, the legal foundation for the establishment of Kompolnas was Presidential order no 17, 2011. This commission is working under and directly responsible to the President, and its main tasks are: 1) to assist President in formulating the policy direction of the National Police, and 2) give advice to the President concerning the appointment of the Chief of National Police. With these tasks and responsibility, this commission may play important role in building up a professional National Police institution.

In regard to government budget and spending, in dealing with the corruption, the state also is also supported by two state bodies. These two bodies are important in monitoring state budget and identify irregularity. The first body is the Financial Audit Body (Badan Pemeriksa Keuangan – BPK). Its legal standing is on par with that of parliament and the presidency. BPK was established to fulfil the constitutional requirement for the existence of a body responsible for auditing state finances. The body is mostly concerned with examining expenditure of the national budget and it audits the books of government ministries and other institutions. Its findings are conveyed to the parliament. The BPK also advises the government should there be findings that involve criminal acts or that impose costs on state finances. The second state body is the Financial and Development Audit Body (Badan Pengawasan Keuangan dan Pembangunan – BPKP). The BPKP is a branch of the government and its task is to examine and audit state finance in all government institutions (Bhargava and Bolongaita, 2004).

The fight against corruption also gets support from foreign organizations. The World Bank, for example has been actively promoting the implementation of good governance practices in Indonesia. In its quest to combat corruption the Bank requires the implementing agency (of recipient country) to implement anti-corruption and transparency strategies in every World Bank‟s sponsored projects. Since 2003, all Bank-supported projects have included Anti-Corruption Action Plans (ACAPs) that explicitly identify governance-related risks to achieving project objectives and set out how those risks will be mitigated and managed. In addition, as part of the Country Partnership Strategy for FY2009-2012 - “Investing in Indonesia‟s Institutions” (World Bank, 2008) the World Bank also provides technical assistants and workshop for the government agency in developing ACAP (World Bank, 2013)

Effect of decentralization and local autonomy in corruption eradication

Corruption and other improper business conducts came in many forms, and they largely depend on the setting, timing, and the causes of corruption. The causes of corruption will depend on national policies, history, bureaucratic traditions, and political development (Martini, 2012). The political reform of 1998 has brought the country into a different political situation, where freedom, openness, and public participations are among the principal factors in various aspects of public life. The new era of political freedom brought to life numbers of new political parties, and soon these political parties are dominating both the government and parliaments. This, unfortunately, also create another problem. As the expression “power tends to corrupt”

may be true, the distribution of power also means distribution of corruption. Once concentrated in central government and all related branches, now corruption is wide spreading into legislators, and the damaged caused by corruption is soaring. The high costs of political campaigns leave no option for legislators and councillors at provincial and district legislatures but „to abuse their power to seek funds to pay for their campaigns to win their legislative seats and to help finance their parties‟ activities‟ (Saragih, 2011).

Another issue emerged resulting from the 1998 reform is the decentralization and broader autonomy of local government. In 1999, the government issues Law no 22 on Local Government. This law provides local government (provincial, county and city) with the legal authority in all aspects of government except for politics, international affairs, security & defence monetary & fiscal, and religion. Decentralization and autonomy is supposedly empowering the local governments to manage their own resources to develop and improve their regional capacity faster than they would under the centralized system. Similar to the above mentioned case, the impact of this law was far below expectation. Decentralization aimed at, among other things aimed to curb KKN by empowering local governments. Yet, this objective has not been realized as the local governments are still lacking of transparency, accountability and strong institutional capacity.

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Corruption practices in public procurement in Indonesia

Public procurement is often considered as a critical point in fighting the corruption. In addition of misused and leakage of government budget, most corruption on government spending occurred during the procurement process. According to KPK, wrongdoing conducts that lead to corruption cases in public procurement can appear in one or more of the 15 stages, ranging from procurement planning to bidding and final hand over (Sidarto Mulyo, 2012). Examples of wrongdoing or improper conduct includes: collusion, unfair practices, inconsistency in implementing standards and regulations, lack of independency, and forgery. Public procurement is also identified by KPPU as the area which is vulnerable to corruption and collusion practices.

According to KPPU (2007), 70% of wrongdoing cases involved collusion during tender or bidding process.

Collusion in procurement can take on one of the following forms: 1) horizontal collusion amongst tenderers, 2) vertical collusion between tender committee with one or more tenderers, and 3) combination of the two.

Either ways, such a practice would certainly hurt consumers. Indications of collusion can be detected in different stages, from procurement stages, to bidding stages and during hand over.

In Indonesia all government procurements must be carried out in accordance to a strict standard regulation. In order to safeguard the use of government money against any wrongdoing, the government has set up a regulation for procurement of goods and services for all government offices in both the central and local government. This regulation, the Presidential decree no 45, 2010, is the latest evolution of a series government attempts to secure the efficient, transparent and competitive procurement process using government money, which is greatly needed to assure the availability of affordable and quality goods/services so that it will benefit to the improvement of public services (Keppres 45, 2010). Although this strict regulation seems to be effective to prevent dishonest-procurement conduct or any wrongdoing, in some cases it may also cause problems. There are reports and complaints that such rigid procedure may lead to lengthy procurement process or may even cause to procurement process to fail. Furthermore, there are also threats to the personnel. The consequences that the procurement personnel must assume is considered too heavy, and can even lead to imprisonment. Such a burden causes reluctance and uncertainty amongst the procurement personnel, which eventually lead to the delays and failure in the procurement process.

Realizing the critical position of public procurement, in order to improve and provide guidance in government procurement process, the government established National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – LKPP), a special agency to handle policies in public procurement. The main duty of LKPP is to implement development and formulation of public procurement policies, and it functions: a) Drafting and formulation of strategies as well as policies and standard procedures in the field of public procurement including the private sector procurement within the framework of public private partnerships, b) Drafting and formulation of strategies as well as policies to develop human resources in the field of public procurement, c) Monitoring and evaluation of its implementation, d) Development of information systems as well as monitoring of public procurement electronically (e-procurement), e) Provision of technical guidance, advocacy and legal counsel, and f) Conducting general administrative services in the field of planning, corporate governance, staffing, finances, and equipment (LKPP, 2013).

INDONESIAN CONSTRUCTION INDUSTRY: A HISTORICAL PROGRESS

1999 marked the turning point for the construction industry in Indonesia. The political reform of 1998 put Indonesia into a new governance paradigm, which in turn also affected practices of the construction Industry.

Law 18 - The Construction Services Law was issued by the government in 1999. Prior to the publication of that law, practically there was no rule that governs the construction industry except for government procurement and government version standard of contract. This law was published in response to increasing demands for public participation, transparency and accountability, as well to face challenges of increasing global competition. This law provides opportunity for more participation of private sector and the community in the construction industry. Among important issues addressed in this regulation includes governance, professionalism, and the role of society at large.

In brief, the historical development of the Indonesian construction industry can be divided into three periods:

before independence or colonial period, development period, and reform period (Soemardi and Wirahadikusumah, 2009). The colonial period the construction industry was very well dominated by the government role in both providing the infrastructure and regulating the industry. Construction contracts were

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SS1-18 also drawn from colonial civil law of Dutch‟s Burgelijk Wetboek 1848. At that time Indonesia has virtually yet to have its own national regulation concerning the construction industry, during which the only known construction legal reference was the colonial inheritance of the Dutch‟s AV41 (Algemene Voorwaarden Voor De Uitvoering Bij Aaneming Van Openbare – 1941).

The development period (1967 to late 1990s) was pretty much in control of the “new era” regime. The Indonesian construction industry started experiencing growth, providing significant contribution to the nation‟s gross domestic product. Despite the inexistence of any construction regulation, the industry managed to grow and expand; involving private sectors and successfully adopting various modern construction practices and standards, such as open bidding procurement process and FIDIC or JCT standard of contracts.

In 1980 the government published the Presidential decree no 14 – 1980 that set standard process and requirement for all procurement goods and services under government budget (including those funded by overseas agencies). In order to maintain fairness and accountability in public procurement, the government also mandated all construction and consultant companies to be licensed, and grouped according to their classification and qualification. This decree was then revised and perfected several times to accommodate changing practices and needs in procurement methods. At present, the Presidential Decree no 45 – 2010 is used as guideline for procurement of all government funded projects.

The reform period highlighted with the enactment of Construction Service Law no 18 (Indonesia, 1999) this law was established to response concerns over the fact that high construction growth was not accompanied by high professional and effective governance. Perhaps the most significant aspect of this law was the foundation for establishment of an independent body that would shift most roles of the government in leading and guarding the development and growth of the Indonesian construction industry. Following the establishment of Construction Service Law no 18, three Government decrees were issued. In principle, the first Government Decree (no 28 – 2000) regulates the professional requirements for entities to operate and the role of society in construction industry. The Government Decree 29 essentially regulates how the construction industry works in terms of contract, covering from selection of provider to execution of work, to construction failure and dispute, whereas Government Decree no 30 concerns with the role of government (both central and local) and construction society in regulating, empowering, and monitoring the construction operation.

Perhaps the most debated issue regarding the implementation of Construction Service Law no 18 is section VII that regulates the role and responsibility of the construction society. Further in Government Decree no 28, the role of construction society is to be formulized in the forms of Construction Service Forum and an independent board. Based on those regulations, the government established Construction Service Development Board (Lembaga Pengembangan Jasa Konstruksi – LPJK) as the independent board that bear the responsibility for development and enhancement of the Indonesian construction services (Soemardi and Wirahadikusumah, 2009). In spite of various progresses in the industry, until today the implementation of these set of regulations is still full of debate and controversies. In particular, the mandatory of licensing and registration for construction firm and individual professional has created another bureaucratic red tape. The position of LPJK as the sole controlling agency is in question. More damaging evidence is that such a policy has generated abusive practice of selling-buying permits, which lingered with collusion and forgery.

Responding to this situation the government, together with the national LPJK (LPJKN) have initiated a set of measures, including effort to reorganize the professional licensing mechanism, better registration administration, and capacity building of local LPJK (LPJKD)

THE CONSTRUCTION INDUSTRY AGAINST CORRUPTION

Corruption and other wrongdoings practices in the construction industry has been the focus of discussion by stakeholders in the industry for quite some time. Much of the discussions are evolving around three things;

why those practices occurred, to what extent the damages, and have there been any initiatives to alleviate these problems. While the understanding of the problems and damages is quite comprehensive, strong evidences that support such assertion are almost non-existent. Allegation of corruption and/or misconduct in construction (kick back, mark up, bribery, etc.) usually emerged after something bad happened, exposed by media, and become public‟s spotlight. Unfortunately, only a small fraction of those allegations are followed up by further actions. Even worse, perhaps much more problems are not exposed to the public and prosecuted. Only cases linking to political or public figures, and involving huge amount of government funds were raised and brought to trial. Example of such recent cases includes Hambalang Sport Center in Bogor

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SS1-19 and Palembang Sport Facility construction projects. These two high profile cases are handled by KPK.

Meanwhile, other construction failure such as Kutai Kartanegara Bridge is still under investigation by the police and OGA of alleged wrongdoing. Based on those examples, it is apparent that the existence of KPK in Indonesia‟s justice system is quite effective and has brought new hope in the fights against corruption in construction industry. Then again, this does not mean that KPK would be the only hope. Other state judicial and law enforcement institutions are also play important role in the nation‟s effort to combat corruption, and they must work in coordination to prevent such widespread disease.

The Indonesian construction industry realized the importance of eradicating corruption and other wrongdoing practices. LPJKN has tirelessly tried to promote good governance principles, including recent changes in organization‟s structure and business process. While licensing and registration practices remains hot issue to be solved, the organization is now more focus in actively promoting good practices in construction through advocacy, training, as well as better and orderly registration mechanism. Together with the Ministry of Public Works, LPJKN is now examining and recommending the refinement of existing regulations. At the same time, LPJKN also actively engages in joint effort with KPK, KPPU, LKPP and other government and state institutions to promote transparency and anti-corruption practices in the industry. All things considered, still the question remains, “How effective are those effort?” Perhaps the movement against corruption will be effective it started from the government side. After all, most of the works and funding for this industry still come from the government‟s budget. Therefore, it is believed that if the government can set example of good practices, the whole industry will then follow.

On the government side, the Ministry of Public Works (MPoW) has responded to the needs for implementation of good corporate governance practices since the very beginning of reform in 1999. Various initiatives have been launched to create a corruption-free zone within the ministerial jurisdiction and promote transparency and anti-corruption actions through the construction industry. Such initiatives consist of, among others, ratification of memorandum of understanding between the Ministry of Public Works and the National Police in securing the implementation of infrastructure works, memorandum of understanding between the Ministry of Public Works and Center For Financial Transaction Report and Analysis (PPATK) in prevention of money laundering practices, and establishment of a set of internal operational procedure guidelines and regulations that are all aimed at the creation of corruption-free zone. Other corruption prevention steps taken by the ministry includes preparation of an anti-corruption action plan designed to improve oversight of the national roads system. In this instance, a workshop is jointly organized by the Ministry of Public Works, KPK and the World Bank in April 2010. This workshop aimed to prepare the MPoW with the national road system action plan, which is designed to: (1) enhance transparency, and (2) use information technology (IT) and independent monitoring by civil society groups to reduce corruption (World Bank, 2013).

Within the MPoW, at least there are two ministerial units that build up and cater the construction industry, and assuring the execution of construction business practice. The Board of Construction Development (Badan Pembinaan Konstruksi – BP Konstruksi), is a unit under the MPoW whose function and responsibility is to build up and cater the construction business. Through this office, the government can set example by initiating good and accountable construction business practices, which will then disseminated throughout the industry. Together with LPJKN and other professional associations can promote and uphold transparencies and anti-corruption policies and practices in the construction industry.

The Inspector General office is a unit of MPoW whose function is to reduce leakages, improve construction quality, and assure the proper execution of works and the functioning of all branches within the Ministry of Public Works. In an effort to combat corruption and other wrongdoings, this office has taken various initiatives and actions in order to assure the implementation of Free-Corruption Area. One thing worth noting about the inspector general's role in the eradication of corruption is that the institution has undergone a paradigm shift, which originally focused on investigating, and auditing now turned into prevention. Rather than trying to find something wrong at the end, it is much better to prevent corruption and wrongdoings. And the results are encouraging. In the last five years the number of finding of wrongdoings in all MPoW‟s units that resulted in government loss (wasted and leaked funding) is decreasing. Furthermore, since 2011, the focus of this institution is to play role as internal consultant for all units within MPoW, to assist the implementation of quality assurance process.

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CLOSURE

Corruption and other wrongdoings practices in the construction industry are serious matters that have penetrated in every facets of the industry, from the government and public sector to the private ones, from the central to the local governments. This condition needs immediate action. While the 1998 reform promised a better condition than before, the inability and unpreparedness of both the public and the government to seize this opportunity has brought the nation into a worse condition. At the early years of the reform, euphoria of freedom has blinded the nation, where responsibility and accountability was ruled out for the sake of political and economic gains of groups or individuals.

The enactment of Law 18 -1999 should be seen as golden gate toward a better, fair, transparent, and accountable construction industry. Of course this law is not perfect and still leaving behind some loopholes, but the spirit should be kept alive. Revision and perfection of regulations should be in order, and capacity building for all players in the industry must also be on the top priority. Considering the important role of the government, the Ministry of Public Works should set an example as the forefront of the construction industry in promoting free-corruption zone. Together with LPJKN and other stakeholders (professional associations, contractors, consultants), MPoW must be able create a fair and transparent construction environment that would alleviate corruption practices.

ACKNOWLEDGEMENT

The authors would like to express sincere appreciation to Mr. Godo Suhadyo for his valuable contributions in this paper.

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SS1-21 Republic of Indonesia. (1999), „Undang-undang Republik Indonesia no: 18 Tahun 1999 Tentang Jasa Konstruksi‟.

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Soemari, B. W. and Wirahadikusumah, R.D. (2009), The Indonesian Construction Law: Challenges toward Globalization, Proceeding COBRA-RISC 2009, CIB W113 Papers on Law and Dispute Resolution, pp 1223- 1233

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