Risk-Based Analysis of Occupational Safety and Health Financing: A Case Study of Small-Scale Construction in Bandung City

Deni Setiawan; Olga Catherina Pattipawaej; Robby Yussac Tallar; Yoel Christian

doi:10.28932/jts.v22i2.14899

Authors

Deni Setiawan Civil Engineering Department, Universitas Kristen Maranatha, Bandung, 40164, Indonesia
Olga Catherina Pattipawaej Civil Engineering Department, Universitas Kristen Maranatha, Bandung, 40164, Indonesia
Robby Yussac Tallar Civil Engineering Department, Universitas Kristen Maranatha, Bandung, 40164, Indonesia
Yoel Christian Civil Engineering Department, Universitas Kristen Maranatha, Bandung, 40164, Indonesia

DOI:

https://doi.org/10.28932/jts.v22i2.14899

Keywords:

Job Safety Analysis, OSH Costs, Project Financing, Risk Management, Small-scale Construction

Abstract

The financing of Occupational Safety and Health (OSH) is frequently neglected in Indonesian small-scale construction, despite evidence that project scale does not mitigate accident risks. This study aims to identify work-related risks using Job Safety Analysis (JSA), evaluate current OSH implementation by contractor "X" in Bandung, and determine the necessary budget allocation based on risk levels. Utilizing a descriptive-quantitative approach, the research benchmarks field practices against Minister of PUPR Regulation No. 10/2021 regarding the Construction Safety Management System. Findings reveal that while basic measures exist, critical gaps remain in Collective Protective Equipment, specifically safety signage and fall protection. Quantitative analysis shows current OSH expenditure accounts for only 0.64% of the total project value, falling significantly below the mandated 1.0%–2.5% range. The study identifies a "Safety Gap" in high-risk phases (Risk Score = 12), where the Cost-to-Risk Ratio is zero. It concludes that an additional budget of IDR 4,480,000.00 is required to achieve a safe OSH proportion of 1.53%. By aligning OSH costs with actual risk profiles through JSA-based budgeting, small-scale contractors can fulfill regulatory requirements and enhance worker safety without compromising project viability.

Downloads

Download data is not yet available.

References

Abrahamsen, E. B., Selvik, J. T., Milazzo, M. F., Langdalen, H., Dahl, R. E., Bansal, S., & Abrahamsen, H. B. (2021). On the use of the ‘Return of Safety Investments’ (ROSI) measure for decision-making in the chemical processing industry. Reliability Engineering & System Safety, 210, 107537. https://doi.org/10.1016/j.ress.2021.107537

Akawi, J., & Musonda, I. (2021). Costing of Health and Safety Elements in Construction Projects in Gauteng, South Africa (pp. 315–320). https://doi.org/10.1007/978-3-030-48465-1_53

Anindya Monika Putri, A. Ferina Herbourina Bonita, Vina Levia Budiman, Andi Rista Irawati Tanrasula, & Erniati Bachtiar. (2025). Comparative Analysis of Fatal Construction Accident Types Revealing Safety Performance in the Services Sector. Structures, Infrastructure, Planning, Implementation, and Legislation, 1(2), 39–50.

https://doi.org/10.69855/sipil.v1i2.317

Bachar, R., Urlainis, A., Wang, K.-C., & Shohet, I. M. (2025). Optimal allocation of safety resources in small and medium construction enterprises. Safety Science, 181, 106680. https://doi.org/10.1016/j.ssci.2024.106680

Baghdadi, A. (2024). Navigating occupational safety and health challenges in sustainable infrastructure projects: a comprehensive review. In Frontiers in Built Environment (Vol. 10). Frontiers Media SA. https://doi.org/10.3389/fbuil.2024.1414366

Belihu, K. T., Woldesenbet, A. K., Shiferaw, A. T., Wubet, W. A., Yehualaw, M. D., & Taffese, W. Z. (2026). Cost Risk Factors in Construction Projects: A Contractor’s Perspective. Information, 17(3), 226. https://doi.org/10.3390/info17030226

Dian, S. R., & Faturohman, T. (2023). The Implementation of Risk-Based Budgeting and Cost Mapping: Study at Pt Kereta Api Indonesia (Persero). European Journal of Business and Management Research, 8(1), 315–320. https://doi.org/10.24018/ejbmr.2023.8.1.1845

Feng, Y. (2013). Effect of safety investments on safety performance of building projects. Safety Science, 59, 28–45. https://doi.org/10.1016/j.ssci.2013.04.004

Fryatt, R. J., & Blecher, M. (2023). In with the good, out with the bad – Investment standards for external funding of health? Health Policy OPEN, 5, 100104.

https://doi.org/10.1016/j.hpopen.2023.100104

Ghodrati, N., Yiu, T. W., Wilkinson, S., Poshdar, M., Talebi, S., Elghaish, F., & Sepasgozar, S. M. E. (2022). Unintended Consequences of Productivity Improvement Strategies on Safety Behaviour of Construction Labourers; A Step toward the Integration of Safety and Productivity. Buildings, 12(3), 317. https://doi.org/10.3390/buildings12030317

Hacibektasoglu, S. E., Mertoglu, B., & Tozan, H. (2021). Application of a Novel Hybrid f-SC Risk Analysis Method in the Paint Industry. Sustainability, 13(24).

Hana Fajrianti, & Mila Tejamaya. (2024). Occupational Health & Safety Cost Analysis in Civil Construction Projects. Media Publikasi Promosi Kesehatan Indonesia (MPPKI), 7(7), 1990–2013. https://doi.org/10.56338/mppki.v7i7.5243

Hashemian, S. M., & Triantis, K. (2023). Production pressure and its relationship to safety: A systematic review and future directions. Safety Science, 159, 106045. https://doi.org/10.1016/j.ssci.2022.106045

Jaafar, M. H., Arifin, K., Aiyub, K., Razman, M. R., Ishak, M. I. S., & Samsurijan, M. S. (2018). Occupational safety and health management in the construction industry: a review. International Journal of Occupational Safety and Ergonomics, 24(4), 493–506. https://doi.org/10.1080/10803548.2017.1366129

Jiménez Carabalí, V., & Afonso, P. (2023). Cost at Risk (CaR): a Methodology for Costing under Uncertainty. Production, 33. https://doi.org/10.1590/0103-6513.20220121

Kelmendi, A., Rugova, N., & Donev, D. (2024). Challenges of Occupational Health and Safety Management in Healthcare Institutions in Kosovo. Materia Socio Medica, 36(3), 149. https://doi.org/10.5455/msm.2024.36.149-154

Kementrian PUPR. (2019). Surat Edaran Menteri PUPR Nomor 11/SE/M/2019 tentang Petunjuk Teknis Biaya Penyelenggaraan Sistem Manajemen Keselamatan Konstruksi.

Kementrian PUPR. (2021). Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Nomor 10 Tahun 2021 tentang Pedoman Sistem Manajemen Keselamatan Konstruksi.

Li, C., Wang, X., Wei, C., Hao, M., Qiao, Z., & He, Y. (2021). Analysis of the Correlation between Occupational Accidents and Economic Factors in China. International Journal of Environmental Research and Public Health, 18(20).

https://doi.org/10.3390/ijerph182010781

Permana, M. A., Witjaksana, B., & Purnama, J. (2025). Analysis of Occupational Safety and Health (OSH) Cost Requirements in The Construction of Rubaru 1 Elementary School. Asian Journal of Social and Humanities, 3(7), 1359–1369.

https://doi.org/10.59888/ajosh.v3i7.543

Putra, S. jaya E., & Armada, A. (2023). EVALUASI TERHADAP IMPLEMENTASI JOB SAFETY ANALYSIS (JSA) DENGAN JOB SAFETY OBSERVATION (JSO). Jurnal TeKLA, 5(1), 39. https://doi.org/10.35314/tekla.v5i1.3409

Ria Novasari Mei Astuti, & Doni Hikmat Ramdhan. (2024). Factors Contributing to the Successful Implementation of an OHS Management System in the Informal/SME Sector. Media Publikasi Promosi Kesehatan Indonesia (MPPKI), 7(6), 1458–1466. https://doi.org/10.56338/mppki.v7i7.5501

Salahuddin Araibi, A., H. Dalef, H., K. Hussein, H., Shaiful Ashrul Ishak, M., & Roslan Rahim, M. (2024). Enhancing Risk Management: Leveraging the Likelihood/Severity Matrix for Effective Risk Assessment and Mitigation in the Electrical and Electronic Sector. Al-Khwarizmi Engineering Journal, 20(3), 59–70. https://doi.org/10.22153/kej.2024.07.003

Sudiarno, A., & Putri Maharani, N. (2024). A Conceptual Framework for Analyzing Occupational Safety and Health Program Investment: Hierarchy of Controls-Based Approach. The Indonesian Journal of Occupational Safety and Health, 13(2), 201–212. https://doi.org/10.20473/ijosh.v13i2.2024.201-212

Weeks, K., Safa, M., & Zamiran, S. (2025). The Productivity–Safety Nexus: The Impact of Human Factors on Operational Efficiency in Construction Projects. Buildings, 16(1), 87. https://doi.org/10.3390/buildings16010087

Yusof, N., & Misnan, M. S. (2019). A Review of Safety Issues among Small Grade Contractors in Construction Industry. MATEC Web of Conferences, 266, 05008. https://doi.org/10.1051/matecconf/201926605008