Summary

The Indonesian construction industry continues to expand at a fast pace, driven mainly by government investment in energy and transport infrastructure. It registered an annual growth rate of 6.1% in real terms in 2018, with the industry’s output value - measured at constant 2017 US dollar exchange rates - increasing from US$199.2 billion in 2017 to US$211.3 billion that year. The industry’s output value is expected to continue to expand at a healthy rate over the forecast period (2019-2023), with investments in housing, transport and tourism infrastructure projects continuing to drive growth. In the 2019 budget, the government increased its total spending on transport infrastructure from IDR410.7 trillion (US$28.8 billion) in 2018 to IDR415 trillion (US$29.1 billion) in 2019.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.75% over the forecast period. The industry is consequently expected to rise from a value of US$211.3 billion in 2018 to US$279.5 billion in 2023, measured at constant 2017 US dollar exchange rates. The focus on the development of local energy resources is also expected to drive industry growth. The government aims to produce 114GW of power by 2024 and 430GW of power by 2050, to meet the rising electricity demand of the country.

Accounting for 34.2% of the industry’s total value in 2018, infrastructure construction was the largest market in the Indonesian construction industry during the review period. The market is expected to follow a similar trend over the forecast period, with infrastructure construction accounting for 36.4% of the industry’s total value in 2023. Residential construction was the second-largest market in the Indonesian construction industry during the review period, accounting for 25.8% of the industry’s total value in 2018. Energy and utilities construction accounted for 22.4% of the industry’s total output in 2018, followed by commercial construction with 7.8%, industrial construction with 6.3% and institutional construction with 3.5%.

The total construction project pipeline in Indonesia including all mega projects with a value above US$25 million - stands at IDR9 quadrillion (US$630.9 billion). The pipeline, which includes all projects from pre-planning to execution, is well balanced, with 50.8% of the pipeline value being in projects in the pre-execution and execution stages as of May 2019.

The report “Construction in Indonesia - Key Trends and Opportunities to 2023” 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
  • 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
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline



Furthermore, the report helps the user to -

  • Identify and evaluate market opportunities using 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 critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors




Scope

This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -

  • Historical (2014-2018) and forecast (2019-2023) 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 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.