Construction in Indonesia presents an in-depth analysis of the construction sector and suggests pathways to further improve the performance and efficiency of the industry. Experts in economics, management, and engineering have examined all aspects of the Indonesian construction sector to provide readers with unique insights into the workings of this important sector of the economy, and to analyse how both economic growth and policies have contributed to Indonesia’s development and how lessons learned can be used to guide future growth. Indonesia’s construction industry is set to grow rapidly after a decade of extensive investments in public infrastructure projects emphasizing new transportation, utilities, and social infrastructure buildings. The book is divided into two sections: Looking Back will focus on a critical analysis of the construction industry, its achievements and its failures, and the impact of the efficiency of the sector in bringing about improvements to overall quality of life. The primary purpose of the second section, Moving Forward, is to suggest directions and emphases for future action by the government of Indonesia (and other stakeholders) to promote the continued development of the construction industry. This book will be a valuable resource for policy makers in government and industry and other stakeholders to obtain a succinct view of the sector in the archipelago and to appreciate its potential to bring about improvements to the quality of life in Indonesia.

Between 1973 and 1978, the Indonesian Government constructed over 61,000 primary schools throughout the country. This is one of the largest school construction programs on record. I evaluate the effect of this program on education and wages by combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program. The estimates suggest that the construction of primary schools led to an increase in education and earnings. Children ages 2 to 6 in 1974 received 0.12 to 0.19 more years of education for each school constructed per 1,000 children in their region of birth. Using the variations in schooling generated by this policy as instrumental variables for the impact of education on wages generates estimates of economic returns to education ranging from 6.8 percent to 10.6 percent

Volume I of this two-volume book documents the development of a highly successful road construction and rural development project in Indonesia. The project, using labour-based construction methods, began on a fairly modest scale and developed into a major scheme to remove the impediments caused by the lack of communication infrastructure in an isolated region. This documentation, featuring numerous photographs and clear diagrams, describes the technology, the systems and the procedures developed, as well as the experience gained in implementing the project.