Infrastructure sector in Indonesia - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Infrastructure sector in Indonesia - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Infrastructure sector in Indonesia is estimated to grow at a CAGR of approximately 3% during the forecast period.

Indonesia's government increased its infrastructure investment needs by USD 429.7 billion in 2020-2024, up 20% from USD 359.2 billion in 2015-2019. Currently, the financing of infrastructure through the Government and Private Cooperation Scheme has reached 83 projects with a total investment of USD 40 billion. Although 30 projects with a total value of USD 50 billion were generated for the non-government budget expenditure financing scheme. PPP (Public-Private Partnership) scheme is set to build 11 projects with a potential project value of Rp19.7 trillion in 2020. Besides that, the government has four focuses on its budget, namely education, healthcare, social protection, and infrastructure.

In 2020, the PUPR Ministry will continue its priority and strategic initiatives to improve national priority achievements, which are infrastructure and balanced regional growth, as well as the sustainability of food, energy, energy and living climate, in the infrastructure sector. Those national priorities are implemented through a water resource management by improving quantity, quality, and water accessibility, which is covered by on-going dam constructions (49 dams).

Key Market TrendsIncrease in value of civil construction:

In 2018, that construction hit a record high of IDR 443.99 trillion, with 65% for civil infrastructure and 35% for real estate and building constructions. From 2015 to 2019 the Government has allocated infrastructure spending up to USD 95 billion, a significant increase from USD 65,5 billion from 2009 to 2014. In 2018, the government has allocated IDR 410.7 trillion.

Government Infrastructural Development Plans

A further trend in the development of infrastructure will be increased geographical diversity. Although construction activity in recent years has been concentrated in Jakarta and the surrounding provinces of Banten and West Java, the Jokowi administration is aiming to decentralize business activity away from Java. Many proposed projects in the latest round of talks with Beijing in Jakarta: four hydropower plants in North Kalimantan, as well as coal-fired power plants, industrial parks, ports, and other facilities in Central Kalimantan, North Sumatra, North Sulawesi and on the Bali resort island.

Competitive Landscape

The report covers the major players operating in the Infrastructure sector in Indonesia. The market is fragmented, the market is expected to grow during the forecast period due to the rapid growth in the infrastructure projects and other few factors driving the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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