Indonesia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Indonesia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Summary

GlobalData expects the construction industry in Indonesia to expand by 3% in 2023, supported by the government’s focus on infrastructure and energy development. As part of the 2023 State Budget, the government increased its allocation to infrastructure development by 7.8%, from IDR363.8 trillion ($23.8 billion) in 2022 to IDR392 trillion ($25.8 billion) in 2023. The Minister of Finance also asked the Minister of Public Works and Public Housing (PUPR) to complete priority infrastructure projects before the election in 2024, with the projects including the construction of roads, airports, railways, bridges, dams, irrigation networks, and housing. The Indonesian government is prioritizing the development of transport infrastructure along with three railway lines in 2024.

The Indonesian construction industry is expected to register an average annual growth of 5.9% from 2024 to 2027, supported by investment in the transport, energy, housing, and industrial sectors. The government’s focus on reducing greenhouse gas emissions and transitioning from coal to clean energy will also support the industry’s growth over the forecast period. According to the Energy and Mineral Resources Ministry, renewable energy investment in Indonesia amounted to IDR8 billion ($527 million) in the first half of 2023, which is just 29.4% of the full-year target of IDR27.5 billion ($1.8 billion). The government aims to increase the share of renewables in its energy mix to 23% by 2025, up from 12% in 2022, and further to 32% by 2030 and 69% by 2060.

The report provides detailed market analysis, information and insights into the Indonesian construction industry, including -

• The Indonesian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Indonesian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -

Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Indonesia, featuring details of key growth drivers.

Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.