The Break Down of The Patron-Client Relationship:

Evident from Makassar Construction Industry Labor Market

Chairil Anwar and Marhawati M

anwarchairil12@gmail.com
wati_chairil@hotmail.com

Abstract
This study examines the interaction between worker flow and the operation of the labor
market within the construction activities. Especially in relation to worker with its employee as
patron-client relationship Makassar labour market operation. Makassar, South Sulawesi is the
provincial capital and the biggest city of eastern Indonesia. The empirical analysis is based on an
examination of construction workers, labor subcontractors and three different categories of
contractors, who are the key stakeholders in the industry. The structure of the construction
industry and its operation was found to be very much dependent on the relationship between the
stakeholders in the industry. The operation of the industry lacked transparency and its structure
feeds on cronyism and family/personal contacts. Heavy government involvement and
paternalism have been constraints on the development of an independent and efficient industry.
The workforce in the industry in general can be divided into permanent employees and non-
permanent employees. The subcontractors, or so called ‘mandor’, play an important role in
recruiting labor to satisfy the industry’s needs.

Exploring through 200 construction worker, 40 mandors and 30 contractors. It shows that
migration has played an important role in influencing the performance and the structure of the
market. The construction industry labour market has traditionally not been open to much
competition, because of evidence of segmentation with laborers connected to particular
‘mandor’. Moreover many construction occupations have offered very insecure employment.
However, this study found that the urban construction labour market has changed, and is now a
more open labour market, in which barriers have been broken down, including patron-client
relationship that mainly due to economic changes.

Key words: Worker mobility, Construction Industry, Labor Market and Economic Change.

Introduction
In urban areas, the industrial development process and greater integration into the global
economy, have been encouraged by organisations such as APEC and WTO, and the result has
been increased urbanisation and rural-urban migration, particularly in the developing countries of
the Asia Pacific region. Urban amenities and higher wage rates and modernisation processes
have attracted many people from rural areas (pull factors), whereas other forces such as poverty,
have pushed migrants from these rural areas to the city. The urbanisation process which involved
a process of economic and social transformation, has been reflected in the rural-urban flow of
human resources. The level of urbanisation refers to the proportion of the population that is
resident in areas designated as urban (Stren at.al, 1992) and is an indicator of the amount of
transformation that has occurred.
 This process involves the movement of substantial numbers of people from rural to urban
areas and it usually results from rapid industrial development that is mainly concentrated in
urban centres, but often expands to encompass urban peripheries. Geographic movement here
does not only mean the movement from rural to urban, but also includes urban to urban
movement depending on the derived demand for labor created.
In most developing countries, the construction sector plays a major role in economic
growth. Activities in this sector can contribute up to 50 percent of gross domestic capital
formation (Stretton, 1977). Lewis (1965, pp. 208-209) states that the expansion of capital is a
function of the rate at which the construction industry can be expanded. Plans cannot be
implemented if there are not carpenters, masons, electricians or engineers to do the necessary
building. Rapid capital formation in the economy can be accelerated if the construction industry
is expanded. It is therefore important to economic growth that construction activities be
structured in a manner that facilitate an efficient expansion of output and a change in the output
mix as demand changes.
The structure of the industry must also allow the construction of buildings at minimum
cost. As the industry often faces fluctuations following economic change, it requires compact
and efficient responses among laborers in the industry. An efficient industry needs a group of
experienced builders, and it is important for the contractors, subcontractors and workers to be
able to cope with the dramatic fluctuations in demand which the industry may face. The effects
of economic fluctuations and the way the industry responds are an interesting focus of
discussion.
The important issue here is the operation of the construction industry and the relationship
between stakeholders, particularly the traditional relationship between intermediaries (so called
‘mandor’) and the workers. Previous studies (UNIDO, 1969; Stretton, 1977; Firman, 1988; and
Kartini, 1990) have found that mandor (middle men) have played significant roles in the
recruitment process and labor hiring, even beyond their customary role of supervising,
coordinating and managing. Currently though, it appears the role performed by the mandor is
changing due to the economic downturn, and technological and skill development. This study
will examine and re-assess this relationship to find out a workable relationship which will
support a more efficient industry, and benefit the stakeholders in an equitable way.

Methodology
The study used three main sources of data and information namely: primary data,
secondary data, and intensive field observation. The primary data were obtained through
interviewing respondents using a questionnaire. These interviews provided both a qualitative and
quantitative perspective at the individual level, as well as focus group discussion. The secondary
data provided an overall picture on a more macro socio-economic and aggregate scale and was of
course more quantitative in nature. Intensive field observation was also undertaken to detect
phenomena of significance to the processes under study that may not have been detected in the
collection of the primary and secondary information, and also to elucidate and elaborate issues
identified from other sources.
The sample in this study comprised 200 construction workers, 40 mandor, and 30
contractors. They were selected from six of the 11 districts (kecamatan) in Makassar City. Six
districts were chosen mainly because they were the location of building activities and appeared
well distributed geographically. Three districts (Wajo, Makassar and Mamajang) were located in
the city centre, where substantial re-building, and renovation was continuing. Three districts
(Tamalate, Panakukkang and Biringkanaya) were located in the city periphery, where building
activities were expanding very rapidly in the newly developing and fast growing areas of
Makassar.

The fieldwork methods used in this case study of the construction industry in Makassar in
order to look at relationship between worker and sub-contractor as patron-client. Experience
suggests that the choice of the research method should be based on the needs of the real situation
in the field. Field observations, questionnaire surveys, and semi-structured in-depth interviews
have all made important contributions to this study. Fieldwork was carried out by the researcher
immersing himself in a collective way of life for the purpose of gaining firsthand knowledge
about a major facet of it.

Effects of the Economic Downturn on the Stakeholders Relationship

There is no doubt that the economic downturn has seriously affected the construction
industry, even though its impact has probably varied among the provinces of Indonesia. Java has
been affected very seriously as economic activities were concentrated in this region. The
construction sector was most affected by the cuts in the government budget and in infrastructure
spending resulting from the crisis. The government budget on public work projects was cut
drastically, which affected the construction industry including contractors, subcontractors, and
ultimately the construction workers.

Over 83.3 percent of the interviewed contractors experienced changes that affected their
situation in running construction activities as a result of the crisis. Some 80 percent felt that
projects had decreased in number, which placed them in a difficult situation in which to survive.
This uncertain situation forced them to try to find ways to avoid the collapse of their business
because their costs were increasing while revenues had stopped. Some 53 percent of them
wanted to remain in this sector and only 20 percent wanted to move out to other sectors.
Nevertheless, they expected the government to pay more attention to the construction industry as
it employed a lot of people.
As intermediate scale operators, sub-contractor or mandor also suffered from worsening
economic conditions caused mainly by the financial crisis. In practice, the mandor have an
important role in physically producing a building at an economic cost. He acts as the
subcontractor in managing workers on the construction site, and the completion of a building
project depends very much on his management and supervisory skills. When the crisis occurred,
it appears that most mandor lost their jobs. Most depended on construction activities as the main
source of their family income, and on contractors as well. From interviews, 85 percent of them
felt that economic changes had affected their work both directly and indirectly. About 90 percent
of them felt that the number of construction projects had decreased and this had affected their
welfare. They felt very sad, that they could no longer provide employment for their affiliated
workers and act as mandor for them. The commitment to fulfil their laborers’ needs was
important and if they could not do this then their strong relationship with their workers was
weakened.
 As an intermediate scale operator, the mandor’s responsibility was to provide job security
for his workers. Therefore, he had to accept whatever building jobs were available, and this
involved accepting more home renovations or small projects offered by housing developers and
real estate developments. Most downzised their operations to become small mandor (skilled
tradesman or kepala tukang), which allowed them to access small construction jobs. The small
mandor worked with his laborers while supervising his affiliated workers, which they had not
felt was necessary in better times.
In the construction industry, laborers constitute the base of the structure. It was the
laborers who put their hard work into the project, but at the same time were in a very vulnerable
and risky position when changes occurred to the industry. Therefore it was the laborers who were
most at risk and those most hurt in an economic downturn, they were also those who received the
smallest rewards of all the stakeholders in the industry. Since the crisis, it is the construction
workers who have been most affected by the decrease in building projects.
In practice, many risks and costs have been transferred from contractors to mandor as
subcontractors. Contractors avoid all costs related to labor recruitment and hiring. Almost all the
uncertainties are transferred to the mandor, then in turn, those ‘costs’ are passed on to the
laborers. The workers suffered greatly when demand decreased. They are in the most vulnerable
position among all the stakeholders in the construction sector. The contractors are able to
minimise costs related to labor hiring and training, thus permitting them to tackle fluctuating
demands for labor.
In the fieldwork interviews, 85 percent of the laborers felt the crisis had affected their
work condition, 7.5 percent said it had not, and 8.0 percent did not know. Even though around 80
percent felt that there was a decrease in the number of jobs created since the crisis happened,
they were still optimistic that they would still have work even if they had to take on smaller jobs
than before. Unfortunately, no data was available and it was almost impossible to detect how
many of them had lost their jobs since the crisis.
During the economic crisis (1998 and 2008), 91 percent of all construction workers, had at
least one period of unemployment lasting at least two weeks. And almost 25 percent had more
than two periods of unemployment of at least 2 weeks duration. The data showed that there were
more periods of unemployment among some of the unskilled (92.6 percent migrants and 84.6
percent nonmigrants) categories of workers, notably among the assistant and ground worker
category.
This higher incidence of unemployment among the unskilled category reflects the
flexibility demanded of unskilled workers as they have to shift into and out of construction work,
and the greater permanence of the highly skilled specialised tradesmen (carpenters). The
carpenters, in fact, have many kinds of specific jobs in construction particularly in the course of
completing a building, which meant they had a lower incidence of unemployment.

The Effect on the Traditional Mandor-Worker Relationship

The word mandor actually comes from the Portuguese word which means “he, who
supervises and guards workers or employees”. The term mandor began to be used first among
workers in the plantation sector, before later being applied to the construction sector. The
Javanese call them ‘bedeng’ which is also similar to ‘pondok’, where tukang and laborers are
recruited to be directly employed on the site. In this case, the employer needed a man who could
negotiate with, organise and supervise the laborers. This man acted as an intermediary who was
more effective if he was a native of the area in order to develop smooth communications between
the owner and the workers.

As a patron, the mandor is the person who negotiates with the contractor about the
tukang’s and worker’s wages. His aim in negotiating is that his workers receive an income which
is competitive with other wage rates available for urban jobs. Certainly, this income is higher
than the workers receive in the village. To obtain workers, the mandor needs to have enough
information on wages in other urban jobs. He must know the wages offered on other construction
sites otherwise he will not be able to hold his workers. He usually tries to provide fringe benefits
in the hope of winning the support and loyalty of his workers, and to motivate them to finish
their jobs on time and give their best efforts.

A Weakening of the Relationship

When the economic down turn occured, the traditional relationship between mandor and
worker was already beginning to weaken. The difficult economic situation further affected the
mandor’s position vis-à-vis his affiliated laborers. The workers felt there was no longer any
support and commitment from the mandor, and they felt neglected. A lot of mandor faced
difficulties in securing jobs for their affiliated workers. There were fewer building projects
offered by contractors, with the few projects available being much smaller in number than the
number of mandor waiting for jobs. In this situation everyone had to struggle to survive. The
weakening of the relationship was caused by the inability of the mandor to provide jobs for his
workers and this meant they felt there was no longer a commitment, there were fewer fringe
benefits, and little support and guarantees from the mandor.

With the weakening of the role of the mandor caused by the worsening economic
situation, there was a tendency for new small mandor to emerge. In much literature and in some
research results, the small mandor was not recognised as part of the construction sector labor
system. The common structure in the construction industry was the skilled tradesman together
with the laborers under the mandor who acted as a subcontractor, with only the mandor having
access to the employer. This was clearly described by Firman (1988) in his research in Antapani
Bandung and Kartini (1990) in the case of the Jakarta construction industry.

The rise of the small mandor, who were originally skilled tradesmen (kepala tukang) is a
new feature of the construction industry. One may argue that the skilled tradesmen tried to find
alternative ways of organising themselves to survive in the construction industry with the aid of
other laborers. Then as the position of traditional mandor weakened, the small mandor began to
replace the the traditional role of the mandor in handling the labor gangs and in searching for
construction jobs. Although the projects were smaller than in the boom years, some continued to
be available.

The position of small mandor has emerged in a time of economic downturn as a response
to the changing situation. It has resulted in the development of a new structure in which the role
of mandor has faded. Unlike the mandor, the small mandor leads and coordinates his affiliated
workers and at the same time he is also involved in working together with these workers.
Generally, small mandor were previously heads of groups of skilled tradesmen, who usually had
their tradesmen assist them. Though some might have previously been mandor themselves, the
worsening economic condition and the declining number of building projects, has forced them to
downsize.

The Breakdown of the Patron-Client Relationship

As field supervisor, the mandor also acts as a patron to the workers. He is basically
responsible not only for the workers’ professional work, but also for their personal wellbeing.
Health and safety issues, wage levels, and support for the family life of the workers, have all
been part of the mandor’s responsibility. This traditional relationship was reported by Firman
(1988) and Kartini (1990) in their research in Indonesia. Nevertheless, these roles are not very
clear and not well developed in the Makassar case due to the type of recruitment and the pattern
of workers’ mobility. Unlike in Firman’s case study, recruitment in Makassar is mostly done in
the city or on the building site. The workers are free to come to the city and join the construction
activities both through the mandor and directly through personal applications. The industry has
also hired commuters and circular migrants as laborers. Labor recruitment would occurred in the
villages or on the sites, and had involved ethnic, friend or relative links. This is unlike the
Javanese system of recruitment, which is initially arranged in the areas of origin with the
subcontractors having full responsibility for all costs related to labor hiring and all family
matters. This system operated under an unwritten contract, as was the case with the Javanese
mandor when they were working in the construction sector in Makassar.

Table 1. Number of Workers who Broke their Relationship with the Labor Subcontractor
During the Economic Down turn, by Skill Category
Skill Category Migrant Nonmig
S % T % Total S % T % Total
(N) (N)
Mason 8 28.6 20 71.4 28 9 60.0 6 40.0 15
Carpenter 9 34.6 15 65.4 26 4 50.0 4 50.0 8
Assistant Mason 1 25.0 3 75.0 4 1 33.3 2 66.7 3
Assistant Carpenter 0 0 4 100.0 4 0 0 0 0 0
Concrete Block Maker 0 0 3 100.0 3 0 0 2 100.0 2
Roof Designer Maker 1 25.0 3 75.0 4 0 0 0 0 0
Ground Worker 0 0 2 100.0 2 0 0 1 100.0 1
Pipe Fitter 0 0 0 0 0 0 0 0 0 0
Others 1 25.0 3 75.0 4 0 0 0 0 0
Total 20 26.7 45 73.3 75 14 48.3 15 51.7 29
Source: Field Survey, 2009 S= Survived T= Terminated

Nevertheless, in a booming economy the mandor played a significant role in his

relationship with the employer (contractor). With so many projects handled by the mandor, he
was free to recruit labor and collect as many laborers as he could. The contractor only wanted to
communicate with the mandor as a sub contractor, and the mandor had the authority to recruit
labor in his own way. Here the mandor sometimes acted as a broker (calo), which may create a
form of exploitation (Hugo, 1993: 58 and Manning, 1998), especially if the recruitment is done
in the area of origin (in the rural areas). The recruitment in the villages might create a patron-
client relationship because the recruited workers would be very much dependent on the broker
who provided transport costs and some additional costs in advance.

In short, in a booming economy labor subcontractors (mandor) played an important role

and gained many opportunities for the workers they recruited and for developers to whom they
provided laborers. However, when the economic situation changed, the relationship changed and
eventually weakened. The workers were neglected and left jobless with no security of
employment. During the crisis mandor and workers tried to find their own way to survive. About
52 percent of nonmigrants and 73 percent of migrants terminated their relationship with their
mandor during the crisis. Migrants were more likely to have terminated the relationship with the
mandor than nonmigrants, particularly in skill categories like masonry, carpentry and roof
designing, and in the unskilled category in assistant carpentry. Nevertheless, nonmigrants were
also neglected by their mandor which caused termination of the relationship particularly in a
skilled category like concrete block makers and an unskilled category such as ground work. This
termination was mainly initiated by the mandor which signalled he did not care, could offer no
job, and had poor communications with his workers.
The mandor also faced difficulties in finding projects. One mandor usually handled more
than one project at a time in normal conditions, but to get even one in the economic downturn
was very difficult. It was understandable in this situation that he could no longer guarantee jobs
for his affiliated workers. The worsening economic climate forced many workers to decide
whether they could keep working in the construction sector or if they should move to another
sector. The case of Dg. Naba and Dg. Rasyid (not real names), two workers in Kecamatan
Tamalate and Biringkanaya in Makassar can be used as case studies (Boxes 2 and 3).
Box 1: Case Study of Mandor Worker Separation

Dg. Naba, a worker in a house building project in Kecamatan Tamalate had 5 years of work
experience. He was married and had 3 children and lived in Sungguminasa Kecamatan Sombaopu
Gowa. As a bricklayer, he commuted everyday from his house approximately 4.5 km to his
workplace, a 45 minute bicycle ride. He worked with mandor Dg. Tompo (his nickname) for more
than 3 years. He was happy working with the mandor as he treated him well and received many
kindnesses from him. He easily got another job when he finished one job with this mandor. He did
not need to apply to get the next job, the mandor usually had already prepared it for him, even on
other building sites. The salary that he received was Rp 60,000/day ($US 5) whereas before it was
Rp 40,000/day. Since he worked with this mandor, he has had no problems with him. He was
recruited for the first time through a friend three years ago. However, suddenly the number of
projects that he was offered decreased dramatically because of the economic downturn that has
made it difficult for the mandor to get projects. The mandor could no longer guarantee his next
job. The situation became worse and just 3 months ago, the mandor said that he could not
provide a job for him and asked him to understand the situation. He actually understood, but was
very disappointed. His current job he found himself through a friend and he was glad to have it
even though the salary was lower than his previous job and the working time was not full time (8
hours a day), but rather just hours a day and he could return home earlier. He recognised that
currently he felt differently than when he had to work with the mandor, but he must work in
order to survive in a situation like this.
 There are a few workers who experienced a fate like Dg. Naba and Dg. Rasyid. Of the
104 workers, who obtained their construction job through a mandor, 26 percent felt disappointed
because of the lost connection and because they were neglected by their mandor. One may argue
that the economic recession and the decrease in the number of projects was the main cause, as it
meant the mandor had lost the power and confidence and capacity to lead the workers. The
workers also felt abandoned by their leader.
Box 2: A Second Case Study of Worker-Mandor Separation

Dg. Rasyid is a worker in Sudiang Kecamatan Biringkanaya Makassar. He is married and has one
child and has only an elementary level of education. He had six years experience in the
construction sector. As a concrete block maker, he commuted from Maros to Kecamatan
Biringkanaya, a 3.5 km distance. It took 30 minutes to get to the building site from his home by
bicycle. His work is not like that of a bricklayer who should come every day. Because of the
different type of job, he comes only if he is needed. But if he is needed, he has to work 12 hours
continuously within a shift system. He received a salary of Rp 50,000 per day (equivalent to $US
4.5) whereas he received just Rp 35,000 per day before. He has worked with mandor Andarias for
two years. He was happy working with the mandor because he continuously gained jobs from the
mandor and there were no difficulties to find the next job after finishing his current job. The
mandor was even able to provide them with jobs before he finished his present job. It just
depended on him as to how many jobs he accepted. He felt it was convenient working with the
mandor and enjoyed his kindness. However, since one year ago he said, the mandor faced
serious difficulties finding construction projects for his affiliated workers, even though he had
downsized his occupation to be a tukang (small mandor) and worked with the other workers in
order to survive. Thus the mandor tried to find a small project for himself and sometimes took
his brothers together with him to finish the job, or asked for help from his brothers, while
helping them to earn money. That was why he neglected his old affiliated workers. With the
situation like this, Dg Rasyid decided to find a job without a mandor. He went to every site
manager in search of a job and eventually found work in Sudiang District. It was only temporary
but he was happy because he could survive. He was disappointed with the previous mandor
because he ignored his fate. He said, after finishing this job, he has been offered work on another
building job by his family, to build a new house which is also located in Biringkanaya District.
Fortunately he has a family who can help him with building activities, and he needs just 4 months
to finish a house. After that, he said, he will try to find another job, but if it is possible he may try
to work as a fish seller (selling door to door) as a temporary position in order to earn an income
in such difficult times.

In the more open labor market, daily wage payments may not be appropriate. A better
alternative may be remuneration in the form of a package of work which will be offered, or
based on per meter/per unit piece of work with a fixed price. This trend has been emerging in the
long and medium term building projects such as housing for low and middle income groups.
Housing building activities look likely to increase because they are open to a large range of
buyers, even if they have to be supported by government through BTN (State Saving Bank)
financing.
 Given the changes that have happened due to the economic downturn, there will
certainly be implications for the urban construction labor market and the particular operations of
the industry. A more open labor market may emerge from this situation, which allows
competition, even though it might produce a less committed industry workforce and it will imply
a higher labor turnover rate for the industry. In addition, a changed structure of the market will
emerge from the development of more highly-skilled laborers, with the mandor having a less
dominant role than before. Improved access to information on job vacancies is a necessary
condition for the development of a more open and competitive labor market. In short, these case
studies have shown that the economic downturn has effected the construction sector, the
operation of the industry, and specifically the relationship between major stakeholders, notably
the traditional relationship between subcontractors (mandor) and construction workers.

Conclusion
The economic downturn has brought some changes in the organization of the
construction industry, especially in the relationship between stakeholders. This study examined
the traditional relationship between intermediaries and laborers. The relationship between
mandor, as labor subcontractors, and the workers, which previously had features of a patron-
client relationship, seems to have broken down, particularly after the collapse of the economy in
1997. There is no longer any security and commitment to laborers from the mandor, where
previously there existed a very strong traditional relationship. This has made the industry and its
labor markets more open and more transparent. Cumulative changes in the industry, in the labor
market environment, and the desire to empower labor through establishing trade union
organization among construction workers, will continue to restructure the construction industry
and its labor market.

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