Identification of Risks in Making Decision for Overseas Expansion by Indonesian State-owned Construction Enterprise

Jeffrey Lim, Ayomi Rarasati, Mohammad Ichsan

2021

Abstract

Construction markets in ASEAN countries, Africa, Middle East, and Timor Leste are the main targets of Indonesian state-owned construction enterprises in developing their business internationally. But the international construction market can be described as complex, uncertain, and risky. Project risk greatly affects the expected profit. Thus, companies must identify risks and how to deal with them before operating abroad. The main goal of conducting this research is to identify risks in making decisions for overseas expansion. This study uses a quantitative approach by distributing closed questionnaires about overseas construction risks to experts and respondents and the data will be analyzed by descriptive statistics. This research analyzed international projects and 10 highest risks have been identified. These risks are unbalance cash flow (0.72), late construction (0.72), currency exchange rate fluctuation (0.56), unclear requirements (0.56), funding shortage (0.56), productivity decreases (0.56), unclear boundaries of work (0.56), revolution (0.40), complex planning and permit procedures (0.40), and inconsistencies in design / construction (0.40). This research has positive implications for Indonesian state-owned construction enterprises in developing their business overseas. The implication is to provide an overview of the risks that may occur hence Indonesian state-owned construction enterprises can formulate strategies to overcome them.

Paper Citation

in Harvard Style

Lim J., Rarasati A. and Ichsan M. (2021). Identification of Risks in Making Decision for Overseas Expansion by Indonesian State-owned Construction Enterprise. In Proceedings of the 1st International Conference on Emerging Issues in Technology, Engineering and Science - Volume 1: ICE-TES, ISBN 978-989-758-601-9, pages 206-212. DOI: 10.5220/0010748100003113

in Bibtex Style

@conference{ice-tes21,
author={Jeffrey Lim and Ayomi Rarasati and Mohammad Ichsan},
title={Identification of Risks in Making Decision for Overseas Expansion by Indonesian State-owned Construction Enterprise},
booktitle={Proceedings of the 1st International Conference on Emerging Issues in Technology, Engineering and Science - Volume 1: ICE-TES,},
year={2021},
pages={206-212},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010748100003113},
isbn={978-989-758-601-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Emerging Issues in Technology, Engineering and Science - Volume 1: ICE-TES,
TI - Identification of Risks in Making Decision for Overseas Expansion by Indonesian State-owned Construction Enterprise
SN - 978-989-758-601-9
AU - Lim J.
AU - Rarasati A.
AU - Ichsan M.
PY - 2021
SP - 206
EP - 212
DO - 10.5220/0010748100003113