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Construction in Indonesia - Key Trends and Opportunities to 2020

Construction in Indonesia - Key Trends and Opportunities to 2020

Synopsis

In real terms, Indonesia’s construction industry is set to perform well over the forecast period (2016–2020) compared to the review period (2011–2015). The industry’s growth over the forecast period will be driven by investment in residential, infrastructure and energy construction projects.

Forecast-period growth will also be driven by the country’s development program over 2015–2019, under which the government aims to develop the country’s transport infrastructure.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 8.09% over the forecast period; up from 6.79% during the review period.

Government efforts to improve transport infrastructure and develop regional connectivity will support the industry’s growth over the forecast period. Plans to increase energy production in the country are also expected to support funding in energy infrastructure projects. Investment in social housing projects will also support the industry’s growth. The government aims to construct 10 million houses by 2019 to address the country’s housing deficit.

The Indonesian construction industry will face challenges over the forecast period. Land acquisition problems, weak cooperation and coordination between the central and local governments, limited funding and bureaucracy are expected to affect the growth prospects of the Indonesian construction industry.

Summary

Timetric’s Construction in Indonesia – Key Trends and Opportunities to 2020 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
  • Analysis of equipment, material and service costs for each project type in Indonesia
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Indonesian construction industry
  • Profiles of the leading operators in the Indonesian construction industry
  • Data highlights of the largest construction projects in Indonesia
Scope

This report provides a comprehensive analysis of the construction industry in Indonesia It provides:
  • Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in Indonesia using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Analysis of key construction industry issues, including regulation, cost management, funding and pricing
  • Detailed profiles of the leading construction companies in Indonesia
Reasons To Buy
  • Identify and evaluate market opportunities using Timetric'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 Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • The construction industry will be supported by the government’s infrastructure development plan. Under the National Medium-Term Development Plan (RPJMN) 2015–2019, the government aims to construct 3,258km of rail, 1,000km of toll roads, 42GW electricity power plants, 24 new seaports and 15 new airports by 2019, which will support projected economic growth of 7%.
  • According to Bank Indonesia (BI), the country’s central bank, residential property prices increased in 2015, backed by growth in demand due to an increase in population and urbanization. The country’s annual average residential property price index for 16 cities grew by 5.6% in 2015. The largest house price increase was recorded in Makassar, where prices grew by 14.8% in 2015 compared to 2014.
  • The Indonesian construction industry’s growth will be driven by a government plan to increase the share of renewable energy in terms of total energy consumption, encouraging investment in renewable energy infrastructure. The government aims to generate 19% of the country’s total electricity needs through renewable sources by 2019, and 25% by 2025.
  • To support economic development and growth, the government launched the 2014–2019 Indonesia Broadband Plan (IBP) in October 2014. Through this initiative, the government plans to improve internet speed and coverage, as well as decrease service fees. Accordingly, the government plans to provide basic broadband access to all citizens by 2019, and equip at least 71% of urban households with an internet connection speed of 20Mbps, and 49% of rural households with an internet connection speed of 10Mbps by 2019.
  • Government efforts to balance supply and demand for affordable housing are expected to support growth in the residential construction market over the forecast period. The government and several construction companies are focusing on developing affordable housing projects in Indonesia. In a bid to provide affordable housing to meet demand from lower- and middle-income groups, the government set a target of constructing 10 million social housing units over 2015–2019.


  • EXECUTIVE SUMMARY
  • INDUSTRY OUTLOOK
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities Construction
    • Institutional Construction
    • Residential Construction
  • KEY ISSUES AND DEVELOPMENTS
  • MARKET DATA ANALYSIS
    • Construction Output and Value Add
      • Construction output by project type
        • Table Indonesian Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Construction Output by Project Type (IDR Billion), 2015-2020
      • Construction output by cost type
        • Table Indonesian Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Construction Output by Cost Type (IDR Billion), 2015-2020
      • Construction output by activity type
        • Table Indonesian Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Construction Output by Activity Type (IDR Billion), 2015-2020
      • Construction value add by project type
        • Table Indonesian Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Commercial Construction
      • Commercial construction output by project type
        • Table Indonesian Commercial Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Commercial Construction Output by Project Type (IDR Billion), 2015-2020
      • Commercial construction output by cost type
        • Table Indonesian Commercial Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Commercial Construction Output by Cost Type (IDR Billion), 2015-2020
      • Commercial construction output by activity type
        • Table Indonesian Commercial Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Commercial Construction Output by Activity Type (IDR Billion), 2015-2020
      • Commercial construction value add by project type
        • Table Indonesian Commercial Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Commercial Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Industrial Construction
      • Industrial construction output by project type
        • Table Indonesian Industrial Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Industrial Construction Output by Project Type (IDR Billion), 2015-2020
      • Industrial construction output by cost type
        • Table Indonesian Industrial Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Industrial Construction Output by Cost Type (IDR Billion), 2015-2020
      • Industrial construction output by activity type
        • Table Indonesian Industrial Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Industrial Construction Output by Activity Type (IDR Billion), 2015-2020
      • Industrial construction value add by project type
        • Table Indonesian Industrial Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Industrial Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table Indonesian Infrastructure Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Infrastructure Construction Output by Project Type (IDR Billion), 2015-2020
      • Infrastructure construction output by cost type
        • Table Indonesian Infrastructure Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Infrastructure Construction Output by Cost Type (IDR Billion), 2015-2020
      • Infrastructure construction output by activity type
        • Table Indonesian Infrastructure Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Infrastructure Construction Output by Activity Type (IDR Billion), 2015-2020
      • Infrastructure construction value add by project type
        • Table Indonesian Infrastructure Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Infrastructure Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table Indonesian Energy and Utilities Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Energy and Utilities Construction Output by Project Type (IDR Billion), 2015-2020
      • Energy and utilities construction output by cost type
        • Table Indonesian Energy and Utilities Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Energy and Utilities Construction Output by Cost Type (IDR Billion), 2015-2020
      • Energy and utilities construction output by activity type
        • Table Indonesian Energy and Utilities Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Energy and Utilities Construction Output by Activity Type (IDR Billion), 2015-2020
      • Energy and utilities construction value add by project type
        • Table Indonesian Energy and Utilities Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Energy and Utilities Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Institutional Construction
      • Institutional construction output by project type
        • Table Indonesian Institutional Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Institutional Construction Output by Project Type (IDR Billion), 2015-2020
      • Institutional construction output by cost type
        • Table Indonesian Institutional Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Institutional Construction Output by Cost Type (IDR Billion), 2015-2020
      • Institutional construction output by activity type
        • Table Indonesian Institutional Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Institutional Construction Output by Activity Type (IDR Billion), 2015-2020
      • Institutional construction value add by project type
        • Table Indonesian Institutional Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Institutional Construction Value Add by Project Type (IDR Billion), 2015-2020
    • Residential Construction
      • Residential construction output by project type
        • Table Indonesian Residential Construction Output by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Residential Construction Output by Project Type (IDR Billion), 2015-2020
      • Residential construction output by cost type
        • Table Indonesian Residential Construction Output by Cost Type (IDR Billion), 2011-2015
        • Table Indonesian Residential Construction Output by Cost Type (IDR Billion), 2015-2020
      • Residential construction output by activity type
        • Table Indonesian Residential Construction Output by Activity Type (IDR Billion), 2011-2015
        • Table Indonesian Residential Construction Output by Activity Type (IDR Billion), 2015-2020
      • Residential construction value add by project type
        • Table Indonesian Residential Construction Value Add by Project Type (IDR Billion), 2011-2015
        • Table Indonesian Residential Construction Value Add by Project Type (IDR Billion), 2015-2020
  • COMPANY PROFILE: PT WIJAYA KARYA (PERSERO) TBK
    • PT Wijaya Karya (Persero) Tbk - Company Overview
      • Table PT Wijaya Karya (Persero) Tbk, Key Facts
    • PT Wijaya Karya (Persero) Tbk - Main Services
      • Table PT Wijaya Karya (Persero) Tbk, Main Services
    • PT Wijaya Karya (Persero) Tbk - History
      • Table PT Wijaya Karya (Persero) Tbk, History
    • PT Wijaya Karya (Persero) Tbk - Company Information
      • PT Wijaya Karya (Persero) Tbk - key competitors
      • PT Wijaya Karya (Persero) Tbk - key employees
        • Table PT Wijaya Karya (Persero) Tbk, Key Employees
  • COMPANY PROFILE: PT PP (PERSERO) TBK
    • PT PP (Persero) Tbk - Company Overview
      • Table PT PP (Persero) Tbk, Key Facts
    • PT PP (Persero) Tbk - Business Description
    • PT PP (Persero) Tbk - Main Services
      • Table PT PP (Persero) Tbk, Main Services
    • PT PP (Persero) Tbk - History
      • Table PT PP (Persero) Tbk, History
    • PT PP (Persero) Tbk - Company Information
      • PT PP (Persero) Tbk - key competitors
      • PT PP (Persero) Tbk - key employees
        • Table PT PP (Persero) Tbk, Key Employees
  • COMPANY PROFILE: PT ADHI KARYA (PERSERO) TBK
    • PT Adhi Karya (Persero) Tbk - Company Overview
      • Table PT Adhi Karya (Persero) Tbk, Key Facts
    • PT Adhi Karya (Persero) Tbk - Business Description
    • PT Adhi Karya (Persero) Tbk - Main Services
      • Table PT Adhi Karya (Persero) Tbk, Main Services
    • PT Adhi Karya (Persero) Tbk - History
      • Table PT Adhi Karya (Persero) Tbk, History
    • PT Adhi Karya (Persero) Tbk - Company Information
      • PT Adhi Karya (Persero) Tbk - key competitors
      • PT Adhi Karya (Persero) Tbk - key employees
        • Table PT Adhi Karya (Persero) Tbk, Key Employees
  • COMPANY PROFILE: PT JASA MARGA (PERSERO) TBK
    • PT Jasa Marga (Persero) Tbk - Company Overview
      • Table PT Jasa Marga (Persero) Tbk, Key Facts
    • PT Jasa Marga (Persero) Tbk - Business Description
    • PT Jasa Marga (Persero) Tbk - Main Services
      • Table PT Jasa Marga (Persero) Tbk, Main Services
    • PT Jasa Marga (Persero) Tbk - History
      • Table PT Jasa Marga (Persero) Tbk, History
    • PT Jasa Marga (Persero) Tbk - Company Information
      • PT Jasa Marga (Persero) Tbk - key competitors
      • PT Jasa Marga (Persero) Tbk - key employees
        • Table PT Jasa Marga (Persero) Tbk, Key Employees
  • COMPANY PROFILE: PT NUSA RAYA CIPTA TBK
    • PT Nusa Raya Cipta Tbk - Company Overview
      • Table PT Nusa Raya Cipta Tbk, Key Facts
    • PT Nusa Raya Cipta Tbk - Main Services
      • Table PT Nusa Raya Cipta Tbk, Main Services
    • PT Nusa Raya Cipta Tbk - History
      • Table PT Nusa Raya Cipta Tbk, History
    • PT Nusa Raya Cipta Tbk - Company Information
      • PT Nusa Raya Cipta Tbk - key competitors
      • PT Nusa Raya Cipta Tbk - key employees
        • Table PT Nusa Raya Cipta Tbk, Key Employees
  • APPENDIX
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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