2024 Trend of Indonesia construction industry

The Indonesia Construction Industry is a dynamic and vital sector that contributes significantly to the country’s economy. these are some insights about it:

Market Size and Growth :

The Indonesia Construction Market is estimated to be USD 284.17 billion in 2024 and is projected to reach USD 407.87 billion by 2029.

The CAGR (Compound Annual Growth Rate) during this period is 7.5%1.

Sector Segmentation:

The construction industry encompasses various sectors:

• Commercial: Includes office buildings, retail spaces, and hotels.
• Residential: Encompasses housing and apartments.
• Industrial: Focuses on factories and manufacturing facilities.
• Infrastructure (Transportation): Involves roads, bridges, railways, and airports.
• Energy & Utilities: Includes power plants, pipelines, and utilities infrastructure.

Recent Trends:

Despite challenges due to COVID-19, the industry has shown resilience.

1. Delays in project implementation occurred, but construction was classified as an essential activity and continued.
2. The government re-allocated part of its budget toward COVID-19 relief measures.
3. Positive growth was observed in housing, industrial, and retail sectors.
4. Apartments started to recover, while landed houses remained dominant.

Infrastructure Development:

The Indonesian government has prioritized infrastructure projects to enhance connectivity across thousands of islands.

Investments in infrastructure contribute significantly to the construction sector’s growth, also indonesian goverments nowadays is building their new capital city as named as ibukota Nusantara, a mega project constructed in island of kalimantan.

In summary, the Indonesia Construction Industry is poised for continued expansion, driven by infrastructure development and resilient market dynamics.

summarized from the following sources :

1. https://www.mordorintelligence.com/industry-reports/indonesia-construction-market
2. https://www.statista.com/topics/8224/construction-industry-in-indonesia/
3. https://www2.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html