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| The Generation Situation and Avoiding Risks of Project Contracting in Indonesian Construction Market |
| HU Hai |
| China Railway Engineering Corporation, Beijing 100055, China |
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Abstract Research purposes: The visible instability and the immature market rules have featured the construction market of Indonesia. And the Chinese companies setting foot in this market have suffered a lot from these potential risks. The author tries to provide his suggestions to those Chinese companies who wish to enter into this market by an in-depth analysis about the characteristics and risks of the Indonesian construction market.
Research methods: The author benefits from his personal working experience in Indonesia and a constant research about Indonesia's construction market to give a full scale and in-depth analysis about the characteristics of the Indonesian market. Based on some actual cases, the author also analyzes those risks that are quite unique in Indonesia one by one and measures to shun each of them have been introduced.
Research Conclusions: Based on the reasoned truth and the analyses, the author believes that the Indonesian market is quite special. It is better for a company to start from Government projects and accumulate experiences step by step. The companies should be prudent when choosing projects, and be as localized as possible. They should probe into the site surveying and ask the payment as soon as possible to avoid unnecessary risks.
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Received: 09 June 2006
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2006, Vol. 23 
