Construction Market in Indonesia 2015-2019
About Construction Equipment Market in Indonesia
Construction equipment refers to tools and equipment that are specially designed for executing construction tasks, mainly earthwork operations. This equipment offers an efficient, accurate, easy, and cost-effective method for the construction of complex and high-quality infrastructure.The growing construction activities in Indonesia is boosting the construction equipment market in the country. While urbanization is encouraging the development of infrastructure, an increase in disposable income is driving the demand for residential and commercial property in the country, thereby propelling the demand for construction equipment. However, there are certain growth inhibitors for the market in Indonesia. Raw materials such as steel availability (import increased from 3.4 million tons in 2009 to over 8 million tons in 2013), high fuel price, and poor transport infrastructure are some of the major challenges curtailing the market growth.
Technavio's analysts forecast the construction equipment market in Indonesia to grow at a CAGR of 10.9% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the construction equipment market in Indonesia for the period 2015-2019. The report presents five key vendors and a detailed analysis of these vendors.
Technavio's report, Construction Equipment Market in Indonesia 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the market landscape and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Construction Market in Indonesia 2015-2019
Technavio recognizes the following companies as the key players in the Construction Market in Indonesia: PT Jaya Konstruksi Manggala Pratama, PT Multi Structure Sarana, PT Nusa Konstruksi Enjiniring and PT Total Bangun Persada
Other Prominent Vendors in the market are: PT Adhi Karya Persero and PT Waskita Karya Persero
Commenting on the report, an analyst from Technavio’s team said: “The increasing demand for energy, related to construction activities, will lead to an increase in greenhouse gas emissions. Therefore, the government is promoting sustainable development practices in the country, including green buildings. The government has formulated guidelines for building construction to protect the environment, and they are mandatory for developers and contractors. The GBCI is the governing body for sustainable development in the country. Apart from this, the INKINDO is set to adopt the Singapore Building Construction Authority’s BCA Green Mark rating system.”
According to the report, in 2014, half of the population of Indonesia was settled in urban areas. This has led to an increase in demand for high-quality infrastructure such as roads, railways, airports, and mass transit systems. The development of social and transport infrastructure has had a huge positive impact on the economy, enabling the growth of several sectors because of efficient delivery of goods and services. The growing urban population in Indonesia has also created a surge in the non-residential construction sector. The increase in demand for commercial spaces, especially multipurpose high-rises, is driving the growth of this sector, and therefore the construction market in Indonesia.
Further, the report states that dependency on imports will affect the construction market in Indonesia negatively during the forecast period.
PT Jaya Konstruksi Manggala Pratama, PT Multi Structure Sarana, PT Nusa Konstruksi Enjiniring, PT Total Bangun Persada, PT Adhi Karya Persero, PT Waskita Karya Persero