Indonesia Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction, Q1 2022 Update

Indonesia Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction, Q1 2022 Update

Report Description

According to ConsTrack360's Q4 2021 Global Construction Survey, construction industry in Indonesia is expected to grow by 12.8% to reach IDR 10,72,022 billion in 2022.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Indonesia remains intact. The construction industry in Indonesia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.3% during 2022-2026. The construction output in the country is expected to reach IDR 14,18,470.4 billion by 2026.

Innovation in the construction sector is expected to meet the growing demand for affordable infrastructure in Indonesia

In Indonesia, the Public Works and Public Housing Ministry (PUPR) is looking at the use of concrete 3D printing to meet the growing demand for affordable infrastructure. Moreover, the PUPR, along with the construction firm PT.PP Tbk and Autoconz have used the technology to erect structures layer-by-layer from the mortar.

According to the PUPR, adopting the 3D printing technology in the construction sector is expected to help the nation build homes more quickly and sustainably. Apart from using innovative technology for building homes, the ministry is also planning to use 3D printing technology to construct schools in the country. The wider implementation of the technology for building residential and commercial projects in Indonesia will also provide the Indonesian Government some respite, which is currently facing funding problems on the back of the global pandemic.

Moreover, ConsTrack360 expects the use of innovative technology to boost the infrastructure development in the country, which will subsequently assist the growth of the overall industry from the short to medium-term perspective.

Areas of priority in the Indonesian infrastructure construction sector in 2022 and beyond

According to the Indonesian Minister of Public Works and Housing, the Indonesian infrastructure construction sector is giving priority to five types of projects in 2022 and beyond. Notably, the first category of the projects involves the completion of national strategic projects which have been implemented since 2020. These include the construction of 48 dams, 406 kilometers of toll roads, 25,000 hectares of irrigation areas, 9,705 apartments, restoration of schools and sports facilities.

The second category of priority project includes the implementation of a capital-intensive plan with a total budget of IDR 21.2 trillion. The third category of the project includes the completion of the development of tourist destinations. These includes Mandalika, Labuan Bajo, Danau Toba, and Borobudur, among others. The fourth category of the project involves the development of food farms in three locations - central Kalimantan, North Sumatra, and East Nusa Tenggara. The fifth category of the project involves the development of the Batang Integrated Industrial Zone in Central Java.

ConsTrack360 expects the development of all of these projects to keep supporting the growth of the construction industry in Indonesia from the short to medium-term perspective.

Reallocation of funds for healthcare restricted the spending on infrastructure construction in Indonesia to some extent

To fight the global pandemic and to contain the spread of the novel coronavirus, the Indonesian Government had to reallocate funds for healthcare. Initially, the Indonesian Government had allocated nearly 50% of the 2021 budget to the infrastructure development projects in the country. However, the Covid-19 outbreak resulted in reallocation, thereby affecting the growth of the construction sector in Indonesia.

However, ConsTrack360 is projecting a strong recovery in the growth of the Indonesian construction industry in 2022. With the global pandemic-induced restrictions starting to ease in Jakarta and some parts of Java during Q3 2021, construction activities are expected to pick up the pace again in the country, which will help the construction sector to recover in 2022.

ConsTrack360 also expects more funding for infrastructure construction projects from the Indonesian Government in 2022, which will subsequently help in the industry’s recovery over the next four to eight quarters.

This report from ConsTrack360 provides data and trend analyses on construction industry in Indonesia, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope
• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Indonesia. KPIs covered include the following:
• Market size by value
• Market size by volume of construction
• Number of units
• Indonesia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Housing type (multi family, single family)
• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Price point / income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)
• Indonesia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Green building by Price point / income level (luxury, mid-tier, affordable)
• Indonesia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

• Indonesia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction
• Indonesia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
• Indonesia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare construction
• Educational construction
• Public sector
• Construction stage (new construction, re-development & maintenance)
• Indonesia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare green building construction
• Educational green building construction
• Indonesia Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)
• Indonesia Green Infrastructure Construction: 10- year market size & forecast in value terms

Reasons to buy
• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Indonesia.
• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.