Indonesia Construction Market

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Indonesia Construction Market

Indonesia Construction Market by Type (Renovation, and New Construction), by Sector (Real Estate and Others), by Construction Method (Traditional Construction, Prefabricated/Modular Construction, 3D Printed Construction, Green/Sustainable Construction), and by Type of Contractor (Small Contractor, Medium Contractor and Large Contractor) – Country Industry Trends and Forecast, 2025–2030

Industry: Construction & Manufacturing | Publish Date: 09-Oct-2025 | No of Pages: 153 | No. of Tables: 117 | No. of Figures: 62 | Format: PDF | Report Code : CM2221

Indonesia Construction Industry Overview

The Indonesia Construction Market size was valued at USD 273.15 billion in 2024, and is projected to grow to USD 312.84 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 535.98 billion by 2030, with a CAGR of 11.4% from 2025 to 2030.

The market is experiencing rapid growth, primarily driven by substantial government-led infrastructure investments, including the development of the new capital city Nusantara and major transportation projects like the Jakarta elevated toll road and the National Railway Master Plan. 

With record-high infrastructure allocations in the 2024 and 2025 state budgets and increased foreign and domestic investments, particularly in transportation and renewable energy, the market is seeing significant momentum. 

However, growth is challenged by complex regulatory frameworks that cause delays and increased costs. At the same time, the integration of digital technologies such as BIM, AI, IoT, and cloud solutions is presenting lucrative opportunities for efficiency and innovation across construction processes.

Government’s Strategic Initiative for Fast‑Tracking Large‑Scale Infrastructure Projects

Indonesia’s construction sector is being significantly propelled by the government’s focused approach to infrastructure build‑out. Central to this strategy is prioritizing large‑scale transportation corridors (highways, rail, ports), energy‑generation facilities (power plants, grid upgrades), and the phased development of the new capital city. The Ministry of Public Works and Housing (PUPR) has unlocked dedicated funding lines and streamlined permitting to shorten project cycles. This public‑sector momentum not only accelerates delivery timelines but also underpins broad‑based economic expansion through enhanced connectivity and urban modernization.

 

Rapid Urbanization and Booming Real Estate Demand

Parallel to public‑sector investment, Indonesia’s accelerating urban migration and rising middle‑class incomes are driving explosive demand for residential, commercial, and mixed‑use developments—particularly in Greater Jakarta, Surabaya, and Makassar. Developers are racing to supply affordable housing, high‑end condominiums, and integrated township projects. This demographic shift has also spurred a wave of office towers, retail malls, and logistics parks to service expanding metropolitan populations. As land values climb in key urban corridors, construction activity is intensifying to meet both housing shortages and evolving lifestyle needs.

 

Complex Regulatory Landscape Slows Project Implementation

Despite the sector’s robust potential, regulatory bottlenecks continue to hamper growth. Developers often face intricate approval procedures involving multiple agencies, ranging from environmental clearance to zoning and land-use permits. Even with the digitization of permit processes under the OSS system, fragmented coordination between national and local authorities contributes to lengthy delays, particularly for large-scale infrastructure. Additionally, variations in local policies and enforcement of building codes create uncertainty, complicating project planning and execution.

Digitalization and BIM Integration Transforming Construction Efficiency

Indonesia’s construction market is entering a new era driven by digital transformation. Spearheaded by national initiatives like the BIM Roadmap, the adoption of Building Information Modeling (BIM) is revolutionizing project planning, coordination, and execution. Public megaprojects are increasingly leveraging BIM for design optimization, cost control, and risk management, leading to improved efficiency and reduced delays. Enhanced by complementary technologies such as IoT sensors, AI-driven analytics, and cloud-based collaboration platforms, the sector is evolving toward smarter, more sustainable construction practices that offer higher quality outputs and global competitiveness.

 

Competitive Landscape  

The key players operating in the Indonesia construction industry include PT Wijaya Karya (Persero) Tbk, PT Adhi Karya (Persero) Tbk., PT Waskita Karya (WSKT), Hutama Karya, PT TOTAL BANGUN PERSADA Tbk., AGUNG PODOMORO GROUP, Pakuwon Jati, PT Ciputra Development (CTRA), POSCO E&C, PT PP (Persero) Tbk, PT Brantas Abipraya Persero., PT Surya Semesta Internusa Tbk., Mitra Gunung Makmur, PT ACSET Indonusa Tbk., PT Jaya Obayashi, and others.

Indonesia Construction Market Key Segments

By Type                

  • Renovation            

  • New Construction            

By Sector                

  • Real Estate            

    • Residential        

      • Affordable    

      • Luxury    

    • Commercial        

      • Retail Buildings    

      • Office Buildings    

      • Hospitality    

      • Healthcare Facilities    

      • Educational Institutes    

      • Entertainment Ventures    

  • Infrastructure    

    • Transportation    

      • Airport

      • Port

      • Rail

      • Road

    • Water and Wastewater    

    • Energy    

    • Telecommunication    

  • Industrial        

    • Manufacturing Plant    

    • Warehouses    

    • Power Plants    

    • Oil Refineries    

    • Chemical Plants

By Construction Method                

  • Traditional Construction            

  • Prefabricated/Modular Construction            

  • 3D Printed Construction            

  • Green/Sustainable Construction            

By Type of Contractor

  • Small Contractor

  • Medium Contractor

  • Large Contractor                

Key Players

  • PT Wijaya Karya (Persero) Tbk

  • PT Adhi Karya (Persero) Tbk.

  • PT Waskita Karya (WSKT)

  • Hutama Karya

  • PT TOTAL BANGUN PERSADA Tbk.

  • AGUNG PODOMORO GROUP

  • Pakuwon Jati

  • PT Ciputra Development (CTRA)

  • POSCO E&C

  • PT PP (Persero) Tbk

  • PT Brantas Abipraya Persero.

  • PT Surya Semesta Internusa Tbk.

  • Mitra Gunung Makmur

  • PT ACSET Indonusa Tbk.

  • PT Jaya Obayashi.

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2024

USD 273.15 Billion

Revenue Forecast in 2030

USD 535.98 Billion

Growth Rate

CAGR of 11.4% from 2025 to 2030

Analysis Period

2024–2030

Base Year Considered

2024

Forecast Period

2025–2030

Market Size Estimation

Billion (USD)

Growth Factors

  • Government’s Strategic Initiative for Fast‑Tracking Large‑Scale Infrastructure Projects

  • Rapid Urbanization and Booming Real Estate Demand

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.

Indonesia Construction Market Revenue by 2030 (Billion USD) Indonesia Construction Market Segmentation Indonesia Construction Market Major Regions

About the Author

Sikha Haritwal is a researcher with more than 5 years of experience. She has been keeping a close eye on several industry verticals, including construction & manufacturing, personal care products, and consumer electronics. She has avid interest in writing news articles and hopes to use blog as a platform to share her knowledge with others.

About the Reviewer

Supradip Baul is an accomplished business consultant and strategist with over a decade of rich experience in market intelligence, strategy, technology and business transformation. His work has included rigorous qualitative and quantitative analysis across multiple industries, helping clients shape investment decisions and long-term roadmaps. Earlier in his career, he was associated with Gartner, where he contributed to industry-leading reports and market share analyses. He has worked with leading global companies and holds an MBA with a dual specialization in Marketing and Finance.

Frequently Asked Questions

Construction firms are adopting digital tools like Building Information Modeling (BIM) to enhance project planning and execution efficiency.

According to Next Move Strategy Consulting, the size of the Indonesia infrastructure market was estimated at USD 273.15 billion in 2024.

There's a growing emphasis on sustainable building practices, including the use of eco-friendly materials and energy-efficient designs, to align with environmental goals.

Evolving regulations are influencing project planning and execution, requiring companies to adapt to new compliance standards.

According to Next Move Strategy Consulting, the size of the Indonesia construction market is estimated to be at USD 535.98 billion in 2030.

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