An Analysis of Critical Success Factors for Enhancing the Performance of Regional Apparatus Organizations (RAOs) in Construction Sector Development in Indonesia

Abstract

Regional Apparatus Organizations (RAOs) in every administrative region of Indonesia serve as the primary supervisory authorities, ensuring that government-managed construction infrastructure projects run efficiently and comply with applicable regulations. Nevertheless, their performance in several areas remains suboptimal due to weak risk management, limited human resource capacity, and low utilization of information technology. The current research specifically examined the Critical Success Factors (CSFs) that shape RAO performance in the construction sector and modeled the causal relationships among these factors. Data were collected through a literature review and a perception-based questionnaire survey involving 60 RAOs across Sulawesi Island. Analysis using Structural Equation Modeling (SEM) via SmartPLS software revealed that Supervision (X3) exerted the strongest influence (0.6749), followed by Institutional Capacity (X1) (0.1983) and Development/Guidance (X2) (0.1571). The CSFs-based model provides actionable references and enables RAOs to overcome operational barriers and supports local governments in strengthening institutional capacity and the supervision of construction projects. Furthermore, the findings highlight concrete strategies for policymakers to design targeted capacity-building initiatives, sustainable development programs, and improved supervision systems within the construction sector.

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