Indonesia Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2048

Indonesia Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2048

The Indonesia Construction Market size was valued at USD 233.76 billion in 2023, and is predicted to reach USD 535.98 billion by 2030, at a CAGR of 11.9% from 2024 to 2030.

Indonesia's construction sector is currently undergoing remarkable expansion, driven largely by a surge in infrastructure initiatives spearheaded by the government, particularly within transportation and energy domains. The Indonesian government committed more than USD 400 billion towards infrastructure development, with the aim of modernizing existing infrastructure and bolstering ancillary facilities. Efforts are being made to encourage private sector participation, with strategies in place to engage private entities in economic infrastructure projects and social services, such as healthcare and welfare programs. The transportation sector is slated to receive the largest portion of this investment, with a focus on establishing new mass transit systems and enhancing the efficiency of current transportation services. This comprehensive approach underscores Indonesia's commitment to fostering robust economic growth and enhancing the quality of life for its citizens through infrastructural development.

However, the construction industry faces significant challenges due to the complex web of government regulations and permitting procedures. These processes often require multiple approvals from various levels of authority, spanning local to national bodies. The regulatory framework encompasses a wide range of requirements, including zoning regulations, environmental assessments, adherence to building codes, and safety standards. Delays in obtaining permits, bureaucratic inefficiencies, and inconsistencies across jurisdictions can greatly extend project timelines and inflate costs. Additionally, fluctuations in regulations or sudden policy changes can disrupt ongoing projects and discourage potential investments. For example, the United States Environmental Protection Agency (EPA) oversees various aspects of the construction sector, such as air quality, waste disposal, and water regulations, providing compliance assistance resources throughout different construction phases.

Conversely, the construction sector is undergoing a transformative shift driven by digitalization and the adoption of Building Information Modeling (BIM). These advancements are revolutionizing project management processes by integrating state-of-the-art technologies to improve efficiency, accuracy, and collaboration. BIM, an advanced 3D modeling tool, empowers stakeholders to create and manage digital representations of structures and infrastructure, fostering enhanced coordination and communication among project teams. For instance, the National Institute of Building Sciences (NIBS) launched the U.S. National Building Information Management (BIM) Program in September 2022. This initiative aims to modernize the construction industry and achieve unprecedented levels of industrial efficiency through digitalization. By addressing the digitalization gap in the U.S. construction sector, this program aims to optimize work processes, thereby enhancing efficiency, cost-effectiveness, resilience, and safety in construction and maintenance activities.

KEY BENEFITS

The Indonesia construction industry is segmented based on type, and sector.
Based on type, the market is segmented renovation and new construction.
Based on sector, the market is divided into real estate, infrastructure, and industrial.

Key Market Players

Leading players operating in the Indonesia construction industry include:
• China State Construction Engineering Corp. Ltd. (CSCEC)
• China Railway Group Ltd. (CREC)
• China Railway Construction Corp. Ltd. (CRCC)
• China Communications Construction Group Ltd. (CCCC)
• Metallurgical Corporation of China Ltd. (MCC)
• Power Construction Corp. of China
• Vinci SA
• China Energy Engineering Corp. (CEEC)
• Shanghai Construction Group (SCG)
• Bouygues Group

 KEY BENEFITS
• The Indonesia construction market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the Indonesia construction market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.