Indonesia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2020-2025

Indonesia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2020-2025

Summary

The Indonesian construction industry's output grew by an estimated rate of 3.1% in 2021, as the government eased social restrictions towards the end of the year. The construction industry registered year-on-year (Y-o-Y) growth of 2.4% in the first three quarters of 2021, according to the BPS (Badan Pusat Statistik), although this growth mostly reflects the low base in 2020, when construction output fell by 2.4% in the first three quarters of 2020. The industry’s output in coming quarters may be affected by a possible decline in economy activity, with the emergence of the Omicron variant and a rise in Coronavirus (COVID-19) cases potentially requiring the reimposition of containment measures.

The industry’s performance will be supported by the government’s emphasis on the implementation of large-scale infrastructure projects under the 2020-2024 National Medium-Term Development Plan (RPJMN). Under which the government plans to develop 5,000km of new toll roads, 3,000km of new national roads, 38,726m of bridges and 31,053m of flyovers and underpasses by 2024. The industry’s output over the forecast period (2023-2026) will also be supported by the Electricity Procurement Plan (RUPTL) 2021-2030, under which the government plans to add 40.6GW of additional capacity by 2030, of which 4.7GW will be solar, and 51.6% will be from renewable sources.

Over the remainder of the forecast period, the construction industry is expected to register an annual average growth of 5.8%, supported by the government’s focus on the development of infrastructure, as well as energy and utilities construction projects. Improvements in consumer and investor confidence and positive developments in regional economic conditions will also provide momentum. The industry’s output will also be supported by the government’s plan to invest IDR6.2 quadrillion ($430 billion) on infrastructure projects by 2024, to support long-term social and economic development, which was unveiled by the government in 2020.

This 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.

• Historical (2017-2021) and forecast (2022-2026) 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

• 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.