Indonesia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (Q2 2026)
Powered by ![]()
All the vital news, analysis, and commentary curated by our industry experts.
The construction industry in Indonesia is expected to expand by 5.4% in real terms in 2026, supported by investments in energy and industrial projects, along with government’s reforms and policies to boost overall economic output. According to the Badan Pusat Statistik (BPS), the construction industry’s value-add grew by 5.5% year on year (YoY) in Q1 2026, preceded by YoY growths of 3.9% in Q4 and 4.2% in Q3 2025. In April 2026, the Indonesian government announced that construction work on five waste-to-energy projects in the country will commence in June 2026. Once completed, these plants are estimated to process more than 7,000 tons of waste per day. Furthermore, the government’s target of building three million housing units annually through 2029, under the ‘3 Million Housing Program’, will also accelerate private and public investments in the housing sector. Additionally, the Indonesian government aims to increase the nation's economy by 5.8% to 6.5% by the year 2027, and by 8% by 2029, driven majorly by increasing revenue through state control of top commodity exports such as palm oil and thermal coal.
Growth over the forecast period will also be driven by the National Long-Term Development Plan (RPJPN) 2025–2045 and the Medium-Term Plan (RPJMN) 2025-2029, which targets advanced industrialization, increased global competitiveness and incentivizing public-private partnerships in infrastructure development. Additionally, Indonesia is also planning to add 69.5GW of new generation capacity by 2034, of which 42.6GW will come from renewable energy sources with an estimated investment of IDR3.1 quadrillion ($185 billion), under the Electricity Supply Business Plan (RUPTL) 2025–2034. Furthermore, Indonesia’s residential real estate market is also experiencing a period of steady expansion, supported by rising public and private investments in addressing Indonesia's severe housing deficit. Among the recent developments in the housing sector, the Indonesian sovereign wealth fund, Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), in March 2026, announced an allocation of IDR16 trillion ($1 billion) to fund a massive, subsidized apartment project in Meikarta, Cikarang. The project includes the construction of 18 residential towers, each 32 stories high, offering approximately 140,000 apartment units.
GlobalData’s Construction in Indonesia – Key Trends and Opportunities to 2030 (Q2 2026) report provides detailed market analysis, information, and insights into the Indonesian construction industry, including:_x000D_
– The Indonesian construction industry's growth prospects by market, project type and construction activity_x000D_
– 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_x000D_
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides:
Historical (2021–2025) and forecast (2026–2030) 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
Reasons to Buy
Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies_x000D_
Assess market growth potential at a micro-level with over 600 time-series data forecasts_x000D_
Understand the latest industry and market trends_x000D_
Formulate and validate business strategies using GlobalData's critical and actionable insight_x000D_
Assess business risks, including cost, regulatory and competitive pressures_x000D_
Evaluate competitive risk and success factors
Table of Contents
Table
Figures
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.