Analysis on Sources of Inefficiency in the Construction Sector: High Cost of Infrastructure Development in Indonesia

Anang Muftiadi, Rivani Rivani and Dian Fordian

A chapter in Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics, 2021, vol. 28, pp 53-67 from Emerald Group Publishing Limited

Abstract: This study aims to identify the trend and sources of inefficiency of the construction sector in Indonesia causes expensive infrastructure development. The basic model was built on the basis of the intermediate input coefficients of Input–Output Table. The sources of inefficiency were metal goods industry, mining and other quarries, the non-metal goods and minerals industry, the cement industry, petroleum refining, building and business services companies, wood, land transportation, manufacture of rubber and plastic goods, financial institutions and machinery, electrical equipment and equipment industries. Indonesia needs a strong upstream industry on raw and supporting materials of iron-steel, wood and cement.

Keywords: Construction sector; determinant sector; inefficiency; input coefficient; input–output table; upstream industry; O41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-038620210000028004

DOI: 10.1108/S1571-038620210000028004

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