Indonesia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Indonesia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects the growth of the Indonesian construction industry to slow from 2% in 2022 to 1.2% this year, owing to high building material prices, elevated interest rates and inflation and slowing external demand. The industry’s output in 2023 will, however, be supported by the government’s focus on infrastructure development. As part of the 2023 State Budget, the government increased its allocation to infrastructure development by 7.8% to IDR392 trillion ($25.3 billion). The industry's growth in 2023 will also be supported by investment to develop the National Capital City of the Archipelago (IKN) - Nusantara. The Directorate General of Human Settlements of the Public Works and Public Housing (PUPR) Ministry prepared a budget of IDR10.4 trillion ($670.3 million) to support the development of the IKN in 2023. The Minister of the PUPR had reported that development of the IKN had reached a progress of 25%, as of April 2023.The construction industry in Indonesia is expected to expand by 4.5% in 2024, before recording an average annual growth rate of 6.4% from 2025 to 2027, supported by investment in transport, renewable energy, manufacturing, and housing infrastructure projects. The government is focused on promoting Indonesia as a major hub for Electric Vehicles (EV). To boost EV sales and attract investment from foreign companies, in March 2023, the government announced IDR7 trillion ($455.9 million) in state funds to subsidize electric motorcycle sales through 2024. It also lowered the value-add tax (VAT) on battery-based electric vehicle sales from 11% to 1%, in early April 2023, to encourage the adoption of EVs; this reduction came into effect in April 2023 and will remain in place until the end of this year.The 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.

Scope

This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -

Historical (2018-2022) and forecast (2023-2027) 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.
• Evaluate competitive risk and success factors.