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Abstract

This paper presents findings of a research project, which explores the current use of
information technology (IT) in the Indonesian construction Industry. The findings are based
on a questionnaire survey taken during December 2002 and April 2003 among 250
construction companies registered in the National Construction Industry Development Board
(CIDB). The CIDB listed and classified these companies as B group or large company. A
total of 48 valid replies were received, representing a response rate of 44%. The survey
includes IT environment and management, use of software, hardware, internet application
and staff competency, Investment in IT, benefits gained and problems associated with its
implementation, and an assessment of the exploitation of IT for business strategic purposes.
Survey reveals that (1) Level of IT applications among contractors in the industry is relatively
low in their core activity; (2) There is growing gap in managing IT, where high investment
and expenditure on hardware and software on one hand with poor human resources
development on other hand; (3) From strategic point of view, Indonesian construction
industry is still in reactive mode of managing IT, and the industry has a limited understanding
of the value and potential of IT. The paper also suggests a need to aggressively push relevant
government initiatives that would increase strategic use and adoption of IT. Government and
public agencies should consider policies, which encourage the use of IT in the construction
industry thus making this industry sector more competitive.
Keywords: IT, construction, Indonesia, management, strategic, application.

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