Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)
Description
Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)
Summary
The construction industry in Indonesia is expected to expand by 4.1% in real terms in 2025. This will be supported by investments in transportation infrastructure projects, particularly rail and road infrastructure projects, coupled with rising public and private sector investments in housing and power construction projects. Furthermore, growth will also be supported by rising foreign direct investments (FDI) in the country. According to the Ministry of Investment and Downstream Industry, the FDI in the country reached IDR219.9 trillion ($13.7 billion) in the first quarter of 2025, marking a year-on-year (YoY) growth of 12.7%. Mining sector accounted for approximately 23% of the total realized investment in Q1 2025, which is equivalent to approximately IDR104.3 trillion ($6.5 billion).
GlobalData expects the industry to register an average annual growth of 5.9% from 2026 to 2029, supported by rising investments in renewable energy, housing and transport infrastructure sectors. In April 2025, Indonesia’s sovereign wealth fund, Danantara, and Qatar announced plans to invest IDR64.2 trillion ($4 billion) in Indonesia. The funding will prioritize large-scale construction and infrastructure projects. This partnership aims to accelerate development in sectors such as transportation, energy, and urban development, supporting Indonesia’s ambitious growth targets. Among other recent developments, in April 2025, Indonesia launched Phase II (2025-2029) of construction for its new capital, Nusantara, with a state budget allocation of IDR44.9 trillion ($2.8 billion). This phase will focus on completing legislative and judicial complexes, expanding infrastructure, and maintaining existing amenities.
GlobalData’s Construction in Indonesia - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the Indonesian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -
Summary
The construction industry in Indonesia is expected to expand by 4.1% in real terms in 2025. This will be supported by investments in transportation infrastructure projects, particularly rail and road infrastructure projects, coupled with rising public and private sector investments in housing and power construction projects. Furthermore, growth will also be supported by rising foreign direct investments (FDI) in the country. According to the Ministry of Investment and Downstream Industry, the FDI in the country reached IDR219.9 trillion ($13.7 billion) in the first quarter of 2025, marking a year-on-year (YoY) growth of 12.7%. Mining sector accounted for approximately 23% of the total realized investment in Q1 2025, which is equivalent to approximately IDR104.3 trillion ($6.5 billion).
GlobalData expects the industry to register an average annual growth of 5.9% from 2026 to 2029, supported by rising investments in renewable energy, housing and transport infrastructure sectors. In April 2025, Indonesia’s sovereign wealth fund, Danantara, and Qatar announced plans to invest IDR64.2 trillion ($4 billion) in Indonesia. The funding will prioritize large-scale construction and infrastructure projects. This partnership aims to accelerate development in sectors such as transportation, energy, and urban development, supporting Indonesia’s ambitious growth targets. Among other recent developments, in April 2025, Indonesia launched Phase II (2025-2029) of construction for its new capital, Nusantara, with a state budget allocation of IDR44.9 trillion ($2.8 billion). This phase will focus on completing legislative and judicial complexes, expanding infrastructure, and maintaining existing amenities.
GlobalData’s Construction in Indonesia - Key Trends and Opportunities to 2029 (Q2 2025) 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.
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -
- Historical (2020-2024) and forecast (2025-2029) 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
- Identify and evaluate market opportunities using our 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 business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
47 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Indonesia, Key Economic Indicators
- Table 3: Indonesia, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: Indonesia, Top Commercial Construction Projects by Value
- Table 5: Indonesia, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: Indonesia, Top Industrial Construction Projects by Value
- Table 7: Indonesia, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
- Table 8: Indonesia, Top Infrastructure Construction Projects by Value
- Table 9: Indonesia, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
- Table 10: Indonesia, Top Energy and Utilities Construction Projects by Value
- Table 11: Indonesia, Institutional Construction Output by Project Type (Real % Change), 2020-29
- Table 12: Indonesia, Top Institutional Construction Projects by Value
- Table 13: Indonesia, Residential Construction Output by Project Type (Real % Change), 2020-29
- Table 14: Indonesia, Top Residential Construction Projects by Value
- Table 15: Indonesia, Key Contractors
- Table 16: Indonesia, Key Consultants
- Table 17: Indonesia, Construction Output Value (Real, $ Million)
- Table 18: Indonesia, Construction Output Value (Nominal, IDR Trillion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: South and South-East Asia, Construction Output (Real % Change), 2023–29
- Figure 2: Indonesia, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: Indonesia, Risk Summary
- Figure 4: Indonesia, Risk Regional Comparison
- Figure 5: Indonesia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: Indonesia, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: Indonesia, Construction Value-Add (2010 Constant Prices, IDR Trillion)
- Figure 8: Indonesia, Value Index of Construction Completed by Construction Companies (2016 = 100)
- Figure 9: Indonesia, Construction Projects Momentum Index
- Figure 10: South and South-East Asia, Construction Projects Momentum Index
- Figure 11: Indonesia, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 12: Indonesia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 13: Indonesia, Accommodation and Food Services Value-Add (2010 Constant Prices, IDR Trillion)
- Figure 14: Indonesia, Wholesale and Retail Trade Value-Add (2010 Constant Prices, IDR Trillion)
- Figure 15: Indonesia, Real Retail Sales Index (2010=100)
- Figure 16: Indonesia, Commercial Property Demand Index for Office and Hotel Buildings (2017=100)
- Figure 17: Indonesia, Number of Foreign Tourist Visits (in Thousands)
- Figure 18: Indonesia, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 19: Indonesia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 20: Indonesia, Manufacturing Value-Add (2010 Constant Prices, IDR Trillion)
- Figure 21: Indonesia, Total Value of Export ($ Billion)
- Figure 22: Indonesia, Bank Indonesia Prompt Manufacturing Index (PMI-BI)
- Figure 23: Indonesia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 24: Indonesia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 25: Indonesia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 26: Indonesia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 27: Indonesia, Total Oil and Gas Exports ($ Million)
- Figure 28: Indonesia, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 29: Indonesia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Indonesia, Education Sector Value-Add (IDR Trillion, 2010 Constant Prices)
- Figure 31: Indonesia, Health Services and Social Activities Value-Add (IDR Trillion, 2010 Constant Prices)
- Figure 32: Indonesia, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 33: Indonesia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: Indonesia, Real-Estate Value-Add (IDR Trillion, 2010 Constant Prices)
- Figure 35: Indonesia, Residential Property Prices (% Change YoY)
- Figure 36: Indonesia, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 37: Indonesia, Headquarters of Key Consultants (% of Total Project Pipeline)
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