Activity in the Indonesian construction industry remained stable in the first three quarters of this year, with the industry’s value add registering year-on-year (Y-o-Y) growth of 2.4% in real terms. However, the recent resurgence of Coronavirus (COVID-19) cases between July and August 2021 is expected to weigh on construction activity in the fourth quarter of this year, affecting the industry’s growth in Q4 2021. Due to this disruption, The publisher has revised down its forecast for 2021 to 3.1%, from the previous projection of 3.8% growth.
In September 2021, the Indonesian government approved a budget of IDR2.7 quadrillion (US$190.1 billion) for 2022, of which IDR1.9 quadrillion (US$133.8 billion) will be allocated for central government spending and IDR770 trillion (US$54.2 billion) for regional administration spending. Simultaneously, the government announced plans to allocate IDR384.8 trillion (US$27.1 billion) towards the infrastructure sector in the budget.
The industry is expected to register an annual average growth of 6.1% between 2022 and 2025, supported by investment on the 2020-2024 National Medium-Term Development Plan (RPJMN). As part of the plan, the government aims to develop various transport infrastructure projects to support economic growth. Accordingly, the government plans to develop 2,500km of new toll roads, 3,000km of new national roads, 38,726m of bridges and 31,053m of flyovers and underpasses during the period. The industry’s output over the forecast period will also be supported by the Electricity Procurement Plan (RUPTL) 2021-2030, under which the government plans to add 40.6GW of additional capacity by 2030, of which 4.7GW of which will be solar, and 51.6% of capacity will be from renewable sources.
The publisher’s Construction in Indonesia - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information and insights into the Indonesian construction industry, including -
In September 2021, the Indonesian government approved a budget of IDR2.7 quadrillion (US$190.1 billion) for 2022, of which IDR1.9 quadrillion (US$133.8 billion) will be allocated for central government spending and IDR770 trillion (US$54.2 billion) for regional administration spending. Simultaneously, the government announced plans to allocate IDR384.8 trillion (US$27.1 billion) towards the infrastructure sector in the budget.
The industry is expected to register an annual average growth of 6.1% between 2022 and 2025, supported by investment on the 2020-2024 National Medium-Term Development Plan (RPJMN). As part of the plan, the government aims to develop various transport infrastructure projects to support economic growth. Accordingly, the government plans to develop 2,500km of new toll roads, 3,000km of new national roads, 38,726m of bridges and 31,053m of flyovers and underpasses during the period. The industry’s output over the forecast period will also be supported by the Electricity Procurement Plan (RUPTL) 2021-2030, under which the government plans to add 40.6GW of additional capacity by 2030, of which 4.7GW of which will be solar, and 51.6% of capacity will be from renewable sources.
The publisher’s Construction in Indonesia - Key Trends and Opportunities to 2025 (Q4 2021) report 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.
Scope
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides -- Historical (2016-2020) and forecast (2021-2025) 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 The publisher'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 The publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
