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Market Value of Green Building in Indonesia (2017-2021, $ Million)

  • The Market Value of Green Building in Indonesia reached $18,485 million in 2021

  • This represents an increase of 4.0% as compared to $17,776 million in 2020

  • The indicator recorded a historical growth (CAGR) of 6.3% between 2017 and 2021

Market Value of Green Building in Indonesia (2017-2021, $ Million)

Published: January 2022
Source: GlobalData

Construction is one of the most heavily regulated industries and is increasingly subject to more stringent rules about the environmental impact of constructing buildings. The World Green Building Council estimates that construction and the energy required to operate buildings account for around 40% of global carbon emissions. 

The growing importance of long-term environmental sustainability is leading to developments intended to reduce the environmental harm of new builds. The construction industry attracts its fair share of criticism around the world, the primary areas of concern being air, water, and noise pollution. As an industry, it also has been a slow adopter of new practices and technologies. With the need for greater sustainability beginning to influence leading companies more than ever before, change became inevitable. 

Green construction is increasingly a subject of concern to governments around the world, and even to the United Nations. The United Nations 2030 Agenda for Sustainable Development has reportedly played an influential role in the growth of more environmentally friendly construction. A green building is a building that is both environmentally responsible and resource-efficient throughout the lifecycle of the building – design, construction, maintenance, renovation, and demolition. The building considers the impact on the environment and quality of life of occupants during every step of the building lifecycle. Non-hazardous, reusable, and recyclable material is used while constructing the building. It also uses renewable energy such as solar, and also ensures efficient utilization of energy, water, and other resources. 

The percentage of companies which will have a majority of ‘green’ projects is said to be increasing rapidly, and much of this growth is expected to come from developing countries. The five countries leading the market are China, the US, India, Mexico, and Indonesia. 

The green building market in Indonesia was valued at $18.5 billion in 2021, a growth of 4.0% over that in 2020. Historically, the market recorded a compound annual growth rate of 6.3% during 20217–21.  



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