Market Concentration in Construction Tenders in West Papua
This study aims to determine the level of market concentration in construction work tenders in West Papua and to investigate the correlation between the market concentration index and the average participation in tenders, the number of work packages, and average tender savings. West Papua has privil...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Yayasan Ilomata
2023-04-01
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| Series: | Ilomata International Journal of Tax and Accounting |
| Subjects: | |
| Online Access: | https://www.ilomata.org/index.php/ijtc/article/view/709 |
| _version_ | 1797799979713036288 |
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| author | Bagas Johantri Rachma Aprilia Sopian Sopian |
| author_facet | Bagas Johantri Rachma Aprilia Sopian Sopian |
| author_sort | Bagas Johantri |
| collection | DOAJ |
| description | This study aims to determine the level of market concentration in construction work tenders in West Papua and to investigate the correlation between the market concentration index and the average participation in tenders, the number of work packages, and average tender savings. West Papua has privileges in procurement and has special autonomy funds for development. The study uses tender data from 2018-2022 and employs the Herfindahl-Hirschman Index (HHI) and Concentration Ratio 4 (CR4) to calculate market concentration. The results indicate that, based on HHI, the market concentration in the building construction and civil engineering subsectors is generally low, except for civil engineering in 2022. However, based on CR4, the market concentration in the building construction subsector is moderate, and in the civil engineering subsector, it is low, except for 2018. Moreover, there is a negative correlation between the number of packages and average participants, as well as between the number of packages and CR4 values. The findings of this study can be useful for construction providers to understand the competition in tenders and assist the government in developing competitive procurement strategies. Future research can investigate the economic benefits of local West Papua businesses when market concentration is low. |
| first_indexed | 2024-03-13T04:27:59Z |
| format | Article |
| id | doaj.art-855d1bdce97a4c5b91715ea535a1145d |
| institution | Directory Open Access Journal |
| issn | 2714-9838 2714-9846 |
| language | English |
| last_indexed | 2024-03-13T04:27:59Z |
| publishDate | 2023-04-01 |
| publisher | Yayasan Ilomata |
| record_format | Article |
| series | Ilomata International Journal of Tax and Accounting |
| spelling | doaj.art-855d1bdce97a4c5b91715ea535a1145d2023-06-20T01:59:23ZengYayasan IlomataIlomata International Journal of Tax and Accounting2714-98382714-98462023-04-014220822010.52728/ijtc.v4i2.709709Market Concentration in Construction Tenders in West PapuaBagas Johantri0Rachma Aprilia1Sopian Sopian2Politeknik Keuangan Negara STANPoliteknik Keuangan Negara STANPoliteknik Keuangan Negara STANThis study aims to determine the level of market concentration in construction work tenders in West Papua and to investigate the correlation between the market concentration index and the average participation in tenders, the number of work packages, and average tender savings. West Papua has privileges in procurement and has special autonomy funds for development. The study uses tender data from 2018-2022 and employs the Herfindahl-Hirschman Index (HHI) and Concentration Ratio 4 (CR4) to calculate market concentration. The results indicate that, based on HHI, the market concentration in the building construction and civil engineering subsectors is generally low, except for civil engineering in 2022. However, based on CR4, the market concentration in the building construction subsector is moderate, and in the civil engineering subsector, it is low, except for 2018. Moreover, there is a negative correlation between the number of packages and average participants, as well as between the number of packages and CR4 values. The findings of this study can be useful for construction providers to understand the competition in tenders and assist the government in developing competitive procurement strategies. Future research can investigate the economic benefits of local West Papua businesses when market concentration is low.https://www.ilomata.org/index.php/ijtc/article/view/709concentration ratiogovernment procurementherfindahl-hirschman indextender |
| spellingShingle | Bagas Johantri Rachma Aprilia Sopian Sopian Market Concentration in Construction Tenders in West Papua Ilomata International Journal of Tax and Accounting concentration ratio government procurement herfindahl-hirschman index tender |
| title | Market Concentration in Construction Tenders in West Papua |
| title_full | Market Concentration in Construction Tenders in West Papua |
| title_fullStr | Market Concentration in Construction Tenders in West Papua |
| title_full_unstemmed | Market Concentration in Construction Tenders in West Papua |
| title_short | Market Concentration in Construction Tenders in West Papua |
| title_sort | market concentration in construction tenders in west papua |
| topic | concentration ratio government procurement herfindahl-hirschman index tender |
| url | https://www.ilomata.org/index.php/ijtc/article/view/709 |
| work_keys_str_mv | AT bagasjohantri marketconcentrationinconstructiontendersinwestpapua AT rachmaaprilia marketconcentrationinconstructiontendersinwestpapua AT sopiansopian marketconcentrationinconstructiontendersinwestpapua |