Indonesia Construction Market by Type (Renovation, and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 17-Dec-2024 | No of Pages: 111 | No. of Tables: 108 | No. of Figures: 53 | Format: PDF | Report Code : CM2221
Indonesia Construction Market Overview
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.
The construction market, known interchangeably as infrastructure market, plays a crucial role in the economy, overseeing the entire lifecycle of diverse physical structures, encompassing infrastructure, buildings, and facilities. This industry undertakes a broad spectrum of projects, spanning from residential, commercial, and industrial developments to civil engineering and institutional infrastructure ventures.
Collaboration among numerous stakeholders, including architects, engineers, contractors, suppliers, developers, investors, and government agencies, is indispensable for its functioning. Positioned for growth, the industry is being propelled by an increased focus on environmentally sustainable practices, such as the incorporation of green building materials and energy-efficient designs. Additionally, factors such as the rising per capita income in emerging economies and low-interest rates in developed nations are expected to further drive the expansion of the infrastructure market.
Government-Led Infrastructure Projects Driving Expansion
Indonesia's construction market is experiencing substantial growth, primarily fueled by an upsurge in government-led infrastructure projects, particularly in transportation and energy sectors. The Indonesian government pledged over USD 400 billion towards infrastructure investments, aiming to upgrade existing infrastructure and enhance supporting facilities.
There is a concerted effort to attract private sector investment, with plans to involve private entities in economic infrastructure development and social services such as healthcare and social welfare. The transportation sector is set to receive the lion's share of the allocated budget, focusing on establishing new mass transit systems and improving the efficiency of existing services.
Investment Boom Propelling Market Growth
The construction market in Indonesia is witnessing significant expansion, buoyed by increased investments in infrastructure-related projects. In 2023, the sector attracted a substantial USD 58 billion in investments, as reported by the Global Infrastructure Hub. Notably, the road transport sector led with a USD 26 billion investment, closely followed by the energy sector with USD 22 billion. This investment surge is expected to persist, driving further growth and advancement in Indonesia's infrastructure market.
Regulatory Complexities in Construction Market Hinders the Growth
Overcoming regulatory complexities poses a significant challenge in the construction market. Infrastructure projects often encounter hurdles due to the intricate network of government regulations and permitting procedures. Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at local, regional, and national levels.
These mandates encompass adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly prolong project timelines and inflate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The construction market in Indonesia is undergoing a significant transformation with the integration of digitalization and the adoption of Building Information Modeling (BIM). Advanced technologies such as BIM are enhancing efficiency, accuracy, and collaboration across diverse projects. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and manage digital representations of structures and infrastructure, facilitating improved coordination and communication among project teams.
For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the Indonesia National Building Information Management (BIM) Program. This initiative aims to revolutionize the infrastructure sector, achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the Indonesia infrastructure sector, the program seeks to streamline lifecycle work processes, enhancing efficiency, cost-effectiveness, resilience, and safety for infrastructure and maintenance projects.
Competitive Landscape
The market players operating in the Indonesia infrastructure industry include PT Waskita Karya (Waskita), PT Adhi Karya (Adhi Karya), PT Pembangunan Perumahan (PP), PT Wijaya Karya (Wijaya Karya), PT Jasa Marga (Persero) Tbk (Jasa Marga), PT Totalindo Eka Persada (Totalindo), PT Surya Semesta Internusa (SSI), PT. Kajima Indonesia, PT. Balfour Beatty Indonesia, PT PP Presisi (PP Presisi), PT Acset Indonusa (Acset), PT Nindya Karya (Nindya Karya), PT Jaya Obayashi, PT PP (Persero) Tbk, Total Bangun Persada, and others.
Indonesia Construction Market Key Segments
By Type
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Renovation
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New Construction
By Sector
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Real estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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PT Waskita Karya (Waskita)
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PT Adhi Karya (Adhi Karya)
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PT Pembangunan Perumahan (PP)
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PT Wijaya Karya (Wijaya Karya)
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PT Jasa Marga (Persero) Tbk (Jasa Marga)
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PT Totalindo Eka Persada (Totalindo)
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PT Surya Semesta Internusa (SSI)
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PT. Kajima Indonesia
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PT. Balfour Beatty Indonesia
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PT PP Presisi (PP Presisi)
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PT Acset Indonusa (Acset)
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PT Nindya Karya (Nindya Karya)
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PT Jaya Obayashi
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PT PP (Persero) Tbk
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Total Bangun Persada
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 233.76 Billion |
|
Revenue Forecast in 2030 |
USD 535.98 Billion |
|
Growth Rate |
CAGR of 11.9% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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