Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028
Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028
Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028
Summary
GlobalData’s Construction in Indonesia - Key Trends and Opportunities to 2028 (Q2 2024) 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.
The construction industry in Indonesia is expected to expand by 5.2% in real terms in 2024, supported by rising foreign investment and an improvement in business confidence and economic conditions. According to the Badan Pusat Statistik (BPS), the value-add of the construction industry rose by 7.6% year on year (YoY) in Q1 2024, preceded by Y-o-Y growth of 7.7% in Q4 and 6.4% in Q3 2023. Over the year, the industry’s growth will be supported by an allocation of IDR422.7 trillion ($27.7 billion) on infrastructure projects as part of the 2024 Budget approved in late 2023. Of this, IDR213.7 trillion ($14 billion) will be invested to construct regional roads, developing the new capital city (IKN), renovating stadiums, and building educational and healthcare infrastructure, while IDR20.3 trillion ($1.3 billion) will be invested in developing infrastructure in the new autonomous regions (DOBs) and supporting public-private partnerships (PPP).
Over the remainder of the forecast period, from 2025 to 2028, the Indonesian construction industry is expected to register an average annual growth of 6% in real terms, supported by public and private sector investment in transport, energy, and residential construction, coupled with the government’s plan to achieve an annual production capacity of 600,000 Electric Vehicles (EVs) by 2030. Growth over the forecast period will also be supported by the National Long-Term Development Plan (RPJPN) for 2025-45, which focusses on the development of renewable energy power plants, the provision of electric transmission networks, biofuel development, and the electric vehicle ecosystem. As part of the plan, the Ministry of National Development Planning of the Republic of Indonesia (Bappenas) estimates that an investment of IDR749.6 trillion ($49.8 billion) per year from 2025 to 2045 to achieve its carbon emission targets.
Scope
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -
Historical (2019-2023) and forecast (2024-2028) 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.