Implementing Industrialized Building System (IBS) in

Indonesian Construction Industry

Abstract

Recently, construction industry development in Indonesia is running very slowly, it is not as

expected. Construction sectors in Indonesia are facing lot of problems and constraints.
Furthermore, there are several major constrainsts which effect construction sectors in
Indonesia, the constraints are defined below: lack of appropiate material, waste of material
on site, lack of skills and experiences of worker, inappropiate construction methods, lack of
innovative building systems, project delay leads to high execution cost, and repair for
finishing work.

Implementing an Industrialized Building System (IBS) in an Indonesian construction industry,

especially for residential housing projects should improve performance and efficiencies of
such projects due to an enormous advantages and benefit bring by said systems. Thus,
there are 3 (three) proposed IBS technologies for residential houses which are: pre-cast
concrete for foundation system, sandwich panel for structural system and light-weight steel
for roof system.

Keywords : Indonesian Construction Industry, Construction Performance, Industrial Building

System (IBS)

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Introduction

Indonesia as a developing country needs a lot of improvement in an infrastructure sector,

thus it needs strong support from a construction industry. Furthermore, the construction
industry plays an important role in national economic growth. In 2011, the construction
industry contribute to economic growth by about 6-7% (CBS, 2011) and employed 7-8 % of
the country‟s labour forces (CBS, 2011).

In recent years, development of the construction industry in Indonesia is running very slowly
due to a lack of industry‟s efficiency such as poor performance, project delay, high execution
cost, conflict among parties, and so on. These problems lead to poor quality of infrastructure
which would effect beneficiaries. Various strategies and solutions have to be taken to
improve the performance and quality of the construction industry. In the end, it will
accelerate development of indonesian infrastructure and increase national economic growth.

However, construction projects in Indonesia often cannot accomodate the changes due to
building innovation technology. Nowadays, there are lot of advancements of building
material and technology which would help to improve the productivity of construction
process and quality of construction finished product such as pre-cast technology, light-
weight steel technology, composite structure technology, sandwich panel technology, and so
on. One of the terms to define building innovation technology is Industrialized Building
System (IBS) which is commonly used in Malaysian construction industry.

The objectives of this paper are to implement industrialized building system (IBS) in an
Indonesian construction industry to improve performance. This paper contains a primary
study on definitions and characteristics of industrialized building system (IBS), recent
development overview of the Indonesian construction industry, and implementation of IBS to
the Indonesian construction industry for future planning usage.

The method of research is literature study from various sources such as literature reviews of
industrialized building system characteristics, construction projects in Indonesia, existing
performance of construction projects in Indonesia, and key performance indicator analysis
for implementing IBS. Furthermore, the results of a literature study are analyzed to obtain
thoroughly figures of the improvement conditions needed in construction projects in
Indonesia. Based on the analysis result, it is expected that key performance indicators of a
housing Industry in Indonesia will be found. Finally, based on the identified issues, strategies

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for implementing IBS are proposed to improve the performance of the housing industry in
Indonesia.

The research question of this paper is how an Industrialized Building System (IBS) Impact
construction industry in Indonesia? And the hypothesis of this paper is by implementing IBS
in an Indonesian construction industry should improve the performance of construction
industry in Indonesia.

Industrialized Building System (IBS)

Industrialized Building System (IBS) is the term to represent the prefabrication and
construction industrialization concept in Malaysia.There are several other terms to describe
industrialized construction and prefabrication such as Modern Method of Construction
(MMC) and Offsite Manufacturing (OSM). MMC is very common inUnited Kingdom (UK) and
OSM is widely used in Australia.

Unfortunately, terms used in a construction industrialization are poorly defined, and often
confused with other terms and precise definitions depend on a user‟s experience and
understanding, which vary from country to country. However, some researchers defined IBS
as following :

“an innovative process of building construction using concept of mass-production of

industrialized systems, produced at the factory or onsite within controlled environments, it
includes the logistic and assembly aspect of it, done in proper coordination with thorough
planning and integration”(kamar, Hamid, Azman & Ahmad, 2011).

In addition, groups of researchers revisit the issue on definitions and classifications of IBS,
they suggest that the new definition of IBS should consist of six different characteristics,
which are “industrialized in transportation, production and assembly technique, mass-
production, onsite fabrication, standardization and structured planning and process
integration” (kamar, Hamid, Azman & Ahmad, 2011). For further explorations of and
discussion between researchers in this field, a generic classification for IBS can be derived
as: “frame system (pre-cast or steel), panelized system, onsite fabrication, sub-assembly
and components, block work system, hybrid system and volumetric and modular
systemintegration” (kamar, Hamid, Azman & Ahmad, 2011).

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Therefore, IBS has alot of advantages for construction process compare to conventional
method of construction, described as follows :

1. “The repetitive use of system formwork made up steel, aluminium, etc and scaffolding
provides considerable cost savings“(Bing et al. 2001).

2. “Construction operation is not affected by adverse weather condition because

prefabricated componentis done in a factory controlled environment” (Peng, 1986).

3. “Prefabrication takes place at a centralised factory, thus reducing labour requirement at

site. This is true especially when high degree of mechanisation involved” (Warszawski,
1999).

4. “An industrialized building system allows for faster construction time because casting of
precast element at factory and foundation work at site can occur simultaneously. This
provides earlier occupation of the building, thus reducing interest payment or capital
outlays” (Peng, 1986).

5. “An industrialized building system allows flexibility in architectural design in order to

minimise the monotony of repetitive facades” (Warszawski, 1999).

6. “An industrialized building system provides flexibility in the design of precast element as
well as in construction so that different systems may produce their own unique
prefabrication construction methods” (Zaini, 2000).

7. “An industrialized building system component produces higher quality of components

attainable through careful selection of materials, use of advanced technology and strict
quality assurance control” (Din, 1984).

There are several types of IBS which are commonly used in developed countries to improve
their construction performance, especially to expedite the development of residential houses.
IBS systems for housing could be divided into 3 main systems as a major part of the building
such as: foundation system, structural system and roof system. Each system will use
different type of IBS due to the the unique part of the building. The proposed IBS for each
part of the building are as following: pre-cast concrete for foundation system, sandwich panel
for structural system, and light-weight steel for roof system. The above systems are often
used in construction project to minimize work on site and ensure the quality of finish product.

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First of all, Pre-cast concrete is prefabricated concrete which is produced in factory with
dimension and quality controlled based on design drawing. Pre-cast concrete will replace
conventional foundation work which usually use stone or concrete on site. Moreover, the
useof pre-cast concrete will improve the speed of work, ensure the strength of the concrete
and reduce wastage on site (see picture 1).

Picture 1.Pre-cast Concrete Foundation

(offsite construction industry survey. 2006. Build offsite. United Kingdom, London.22)

The next system, sandwich panel which is mainly used in Europe and United States is a
semi fabricated system in which the main part of the systems are produced in the factory
whilethe rest of the system are installed on site. The main part of the system is the sandwich
panel without concrete application in both sides of panel which will replace conventional
structural system such as column and beam structure. Furthermore, the use of sandwich
panel will lead to reduces labour force and construction time, flexibility in design, reduce
wastage on site, and earthquake proof buildings (see picture 2).

Picture 2. 3D Construction System Sandwich Panel

(Brief Introduction of 3D construction System. 2006. EVG. Australia, NSW)

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Finally, light-weight steel for roof system in which all parts of the roof are produced in the
factory. Roof structures or trusses are made from light-weight steel and the roof cover
should be made from any kinds of material depends on the needs. Light-weight steel will
replace conventional wood trusses which is very heavy. The use of light-weight steel will
reduce construction time and improve the strength of roof structure as earthquake proof
structure (see picture 3).

Picture 3. Light-Weight Steel Trusses

(LysaghtSmartruss. 2011. Lysaght Point. Indonesia, Jakarta)

Indonesian Construction Industry

As mentioned previously, the construction industry in Indonesia play an important role in

national economic growth. In 2011, the construction industry contribute to economic growth
by about 6-7% (CBS, 2011) and employed 7-8 % of the country‟s labour forces (CBS, 2011).
Unfortunately, based on data released by the Central Bureau of Statistics (CBS) in 2009
there was a significant decrease on satisfaction level of construction productivity. It means
that the Indonesian construction industry still has a poor performance record.

Currently, the construction industry in Indonesia are facing lot of problems, the lack of
industry‟s efficiency due to poor performance, project delay, high execution cost, and a
labour intensive. This problerm may occure mainly because several factors as following:
misconduct of project management, insufficient finance capital, lack of professional
engineers and lack of building innovation technologyknowledge. Moreover, the government
of Indonesia should create a good environment for the construction industry by preparing
proper regulation which would drive construction player into professional management.

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Some research was conducted to evaluate the construction project and their constraints.
One of the research conducted described inefficiency in the Indonesian construction industry
as following: problem in project delivery such as lack of appropiate material and waste
valuable resources for rework, lack of skills and experiences lead to adapted changes
resistance, disintegration between parties involved, traditional patterns of communication
leads to project delay, waste and dispute during communication, and that the Indonesian
construction industry is at risk as a result of failure to anticipate change in a dynamic change
environment (Larasati and Tsunemi, 2009).

Other research was conducted to define critical factors which effect construction productivity,
the factors are described below: supervision, material, execution plan and design (Soekiman
et al, 2007). Nevertheless, another research was conducted to describe issues contributed
to reduces construction productivity and company performance, the factors are: repair on
finishing works, material delays, project schedule delays, design changes, slow decision
making and lack of worker‟s skills (Alwi et al, 2002).

To summarize, the above discussions show major constraints which effect construction
industry performance in Indonesia, the constraints are described as following: lack of
appropiate material, waste of material on site, lack of skills and experiences of worker,
inappropiate construction methods, lack of innovative building systems, project delay leads
to high execution cost, and repair for finishing work.

Analysis and Discussion

Based on the literature review and discussion above, this paper will provide some analysis
and further discussion regarding solutions to overcome constraints and problems in the
Indonesian construction industry which would effect performance and efficiencies of
construction project, especially for residential house projects. Several solutions are proposed
to counter the constrains as following :

1. Lack of appropiate material can be solved by providing good quality of construction

material which should contain prefabricated or semi-prefabricated materials.

2. Waste of material on site can be reduced by using prefabricated or semi-prefabricated

materials which will manage the waste in the factory.

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3. Lack of skills and experiences of workers and inappropiate construction methods can be
solve by providing innovative construction methods which wouldn‟t need a lot of skilled
workers such as Industrialized Building System (IBS).

4. Lack of innovative building technology can be solved by implementing IBS which contain
of prefabricated and semi-prefabricated materials.

5. Project delay lead to high execution cost can be solved by using IBS because it should
reduce construction time due to simplicity of installation of IBS process.

6. Repair for finishing works can be solved by using IBS because it should maintain the
quality of finish product by factory assessment.

Furthermore, the analysis above shows the importance and necessity of implementing
Industrialized Building System (IBS) as an innovative building technology inthe Indonesian
construction industry, especially residential house project. Therefore, there are 3 (three)
proposed systems conducted with IBS to replace conventional method to construct
residential houses. This system will apply to 3 (three) major parts of the house construction
such as foundation, structural and roof parts. The 3 (three) proposed system are : pre-cast
concrete for foundation system, sandwich panel for structural system, and light-weight steel
for roof system.

Based on various explanation above, problems and constraints of the Indonesian

construction industry are identified. Possible solutions to overcome those problems are
being proposed. Furthermore, this papersuggests various strategies to implement
industrialized Building System (IBS) in Indonesia Construction Industry for future planning.
The strategies are described below:

1. Promote and develop IBS technology to all construction players.

2. Conduct training for construction workers regarding IBS technology.

3. Prepare a formal regulation for implementing IBS in Indonesian construction industry.

4. Insist all constructions players to use IBS technology.

5. Invite investors for set up factory for IBS technology.

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6. Prepare the society for alternative technology.

To summarize, above analysis and discussions are providing a strategy development

process for implementing IBS, which is described below (see figure 1). Furthermore, the
strategy is planned to be implemented for the next 5 years in Indonesian construction
industry (see figure 2).

Figure1. Strategy Development for Implementing IBS

Figure2. Time Projection Plan for Strategy Development

Conclusions

To conclude, the construction industry in Indonesia has an important role to improve national
economic growth. Therefore, construction sectors have to be improved to achieve positive
national economic growth. Recently, the construction industry in Indonesia is facing lot of
problems and constraints which would cause poor performance and lack of efficiencies in
construction project. Moreover, implementing Industrialised Building Systems (IBS) in
residential housing project in Indonesia should improve performance and efficiencies of such
project due to enormous advantages and benefit bring by said systems.

In fact, there are lot of challanges and obstacles to implement IBS in construction industries.
Thus, this paper hassuggested several strategies to implement IBS in Indonesia.However,

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this paper analysis and discussion still needs further research to make it more visible and
reliable due to lack of experience of having projects with IBS technology in Indonesia.

Hopefully, the result of this paper could bring better knowledge regarding IBS technology
and should encourage the Indonesian government to take action for improving construction
sectors by implementing IBS technology. In future studies, there should be more research
conducted regarding the IBS system which could be more specific in finding more suitable
IBS technology for construction environment in Indonesia, especially for green and
sustainable building systems.

References

Alwi, S., Hampson, K., and Mohamed, S. 2002, „Indonesia : a study of non value-adding
activities‟, Proceedings of the international conference on advancement in design,
construction, construction management and maintenance of building structure, Bali,
27-28 March, Vol.II, pp. 20-34.

Bing, L., Kwong, Y.W., and Hao, K.J. 2001,„Seismic behaviour of connection between
precast concrete beams‟,CSE Research Bulletin, No.14.

Central Berau of Statistic 2007, „Economic Indicators 2007‟, Jakarta, Indonesia.

Central Berau of Statistic 2009, „Saisfactory Level of Construction Productivity‟, Jakarta,

Indonesia.

Din, H. 1984, „Industrialised building and its application in Malaysia‟. Seminar on

Prefabrication of Building Construction, Kuala Lumpur.

Kamar, K.A.M., Hamid, Z.A., Azman, M.N.A. and Ahmad M.S.S. 2011, „Industrialized
building system (IBS): revisiting issues of definition and classification‟, International
Journal of Emerging Sciences, Vol. 1, no. 2, pp. 120-132.

Larasati, D., and Tsunemi, W. 2009, „Evaluation study on existing condition of indonesian
construction industry : how to improve performance and the competitiveness,Kochi
University of Technology, Japan.

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Peng, C.S. 1986,„The scenario of industrialised building systems in Malaysia‟,Proceedings of
a UNESCO/FEISEAP Regional workshop, UPM Serdang.

Soekiman, A., Pribadi, K.S., Soemardi, B.W., and Wirahadikusumah, R.D. 2007, „Factors
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Warszawski, A. 1999,„Industrialised and automated building systems‟, Technion-Israel

Institute of Technology, E & FN Spon.

Zaini, O. 2000,„Malaysian Construction Industry Challenges and demand‟. Malaysian

Structural Steel Association Convention, Kuala Lumpur.

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