Indonesia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
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Indonesia Construction Market Report Overview
The Indonesia construction market size was $244.4 billion in 2022. The market is projected to achieve an AAGR of more than 5% during 2024-2027. The market output will be supported by investment in the transport, energy, housing, and industrial sectors. The government’s focus on reducing greenhouse gas emissions and transitioning from coal to clean energy will also support the industry’s growth over the forecast period.
Indonesia Construction Market Outlook, 2022-2027 ($ Billion)
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The Indonesia construction market research report provides detailed market analysis, information, and insights into the Indonesia construction industry, including the industry’s growth prospects by market, project type, and construction activity. The report also delivers critical insight into the impact of industry trends and issues and an analysis of key risks and opportunities in the construction industry of Indonesia. It also analyzes the mega-project pipeline, focusing on development stages, participants, and listings of major projects in the pipeline. The market report discusses the sectors in the construction market and provides an overview of each sector along with their driving factors.
Market Size (2022) | $244.4 Billion |
AAGR (2024-2027) | >5% |
Forecast Period | 2023-2027 |
Historical Period | 2018-2022 |
Key Sectors | · Commercial Construction
· Industrial Construction · Infrastructure Construction · Energy and Utilities Construction · Institutional Construction · Residential Construction |
Key Contractors | · PT PP (Persero) Tbk
· PT Wijaya Karya (Persero) Tbk · PT Hutama Karya (Persero) · PT Adhi Karya (Persero) Tbk · China State Construction Engineering Corp Ltd |
Key Consultants | · AECOM
· PT Synergy Engineering · Chiyoda Corp · Integrated Design & Engineering Holdings Co Ltd · KBR Inc |
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Indonesia Construction Market Segmentation by Sectors
Infrastructure construction was the leading sector in the Indonesia construction market in 2022.
The key sectors in the Indonesia construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction.
Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. The commercial sector’s growth will be supported by an anticipated improvement in construction demand in the leisure and hospitality sector, coupled with investment in office, retail, and data center projects.
Industrial construction: The project types in this sector include chemical and pharmaceutical plants, manufacturing plants, metal and material production and processing plants, and waste processing plants. The sector growth during the forecast period will be supported by an increase in manufacturing production, coupled with investment in the mining and automotive manufacturing sectors.
Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. The growth of the sector will be supported by government investment in transport projects to improve regional connectivity.
Energy and utility construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. The growth of the sector will be supported by investment in power, oil and gas, and telecommunication projects.
Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. Forecast-period growth in the institutional construction sector will be supported by public investment in health and education projects, coupled with the government’s focus on improving the country’s healthcare infrastructure to lower the number of Indonesians seeking medical services abroad.
Residential construction: The project types in this sector include single-family housing and multi-family housing. The growth will be supported by the government’s plan to construct five million housing units by 2027.
Indonesia Construction Market Analysis by Sectors, 2022 (%)
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Indonesia Construction Market - Competitive Landscape
PT PP (Persero) Tbk was the leading contractor and AECOM was the leading consultant in the Indonesia construction market in 2022.
Some of the leading contractors in the Indonesia construction market are:
- PT PP (Persero) Tbk
- PT Wijaya Karya (Persero) Tbk
- PT Hutama Karya (Persero)
- PT Adhi Karya (Persero) Tbk
- China State Construction Engineering Corp Ltd
Domestic contractors account for a majority share of the project pipeline in the Indonesia construction market.
Indonesia Construction Market Analysis by Contractors, 2022 (%)
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Some of the leading consultants in the Indonesia construction market are:
- AECOM
- PT Synergy Engineering
- Chiyoda Corp
- Integrated Design & Engineering Holdings Co Ltd
- KBR Inc
Consultants with headquarters outside Indonesia are involved in most of the project pipeline by value.
Indonesia Construction Market Analysis by Consultants, 2022 (%)
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Indonesia Construction Market – Latest Developments
- According to the BPS, the value add of the construction industry rose by more than 5% YoY in Q2 2023, preceded by Y-o-Y growth of less than 1% in Q1 2023.
Segments Covered in the Report
Indonesia Construction Sectors Outlook (Value, $ Billion, 2018-2027)
- Commercial Construction
- Industrial Construction
- Infrastructure Construction
- Energy and Utilities Construction
- Institutional Construction
- Residential Construction
Scope
This report provides:
- A comprehensive analysis of the construction industry in Indonesia.
- Historical and forecast valuations of the construction industry in Indonesia, featuring details of key growth drivers.
- Segmentation by sector 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 GlobalData’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 GlobalData’s critical and actionable insight.
- Assess business risks, including cost, regulatory, and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
Frequently asked questions
-
What was the Indonesia construction market size in 2022?
The construction market size in Indonesia was $244.4 billion in 2022.
-
What is the Indonesia construction market growth rate?
The construction market in Indonesia is projected to achieve an AAGR of more than 5% during 2024-2027.
-
Which was the leading sector in the Indonesia construction market in 2022?
Infrastructure construction was the leading sector in the Indonesia construction market in 2022.
-
Which are the leading contractors in the Indonesia construction market?
Some of the leading contractors in the Indonesia construction market are PT PP (Persero) Tbk, PT Wijaya Karya (Persero) Tbk, PT Hutama Karya (Persero), PT Adhi Karya (Persero) Tbk, and China State Construction Engineering Corp Ltd.
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