Challenges and action plans in construction sector owing to COVID-19 pandemic – a case in Indonesia real estates

Abstract

Purpose All industry has been facing tremendous pressure since the beginning of 2020 owing to COVID-19 crisis, including real estate construction. The research is a case study investigating challenges and action plans faced by stakeholders (developers/consultants/contractors) in real estate construction in some major cities in Indonesia. This study aims to identify and prioritize on action plans related to real estate construction stakeholders. Design/methodology/approach The study gathered challenges and action plans by distributing open questionnaire to expert to get insights in their own verbatim. Data reduction was then performed to get high-level challenges and high-level action plans. High-level action plans were then analyzed using proposed Eisenhower-simultaneous importance performance analysis (SIPA) matrix which help prioritize high-level action plans. Correlation matrix was also constructed to gain insight on relation between action plans to challenges and to three main LEAN elements (Muda, Mura and Muri). Alternative ranking method using “sum-product to 3M” approach was also performed to give complementary insights. Findings Ten action plans fall under category “Act now and become COVID-19 champion company.” One falls under category “prepare and invest now to gain competitive advantage,” one falls under category “external collaboration now to survive,” one falls under category “external collaboration for potential efficiency,” whereas the remaining six action plans fall under category “let-it-go” or “do-nothing.” Research limitations/implications The study gathered only 48 and 64 respondents in its first and second questionnaires. Despite small number, the respondents are experts in their own field, and their valuable insights and responses off-set the limited number of participants. The study gives insightful action plans that can be taken by stakeholders in real-estate construction in Indonesia’s major cities analyzed by proposed Eisenhower-SIPA matrix. Originality/value The novelty of the research lies in the insights from industry experts in dealing with current COVID-19 pandemic in real-estate construction in Indonesia. Added value is also given through the use of Eisenhower-SIPA matrix.