Investment Analysis of Construction Industry in Indonesia (2016-2021)

An analyst from Market Research Future (MRFR)’s team said: “The construction market in Indonesia plays an integral part in the financial progress of the country. The construction market in Indonesia is one of the rapidly developing markets in South-East Asia. In 2015, the construction business accounted for 11.92% of Indonesia’s GDP. The construction sector has contributed significantly to the infrastructure development in the country and thereby to the tourism industry in the country over the past few years.”

According to the report, Indonesia is known as the second most productive and profitable construction market in Asia, where a huge number of construction projects are undergoing in both residential as well as non-residential sectors. The majority of the market is dominated by non-residential properties approximately around 56.67% in 2015 as compared to residential construction activities.

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In Indonesia, the construction industry has been growing 8% to 9% annually, due to huge demand for residential properties and growth of the property sector in major cities around the country. The public works investment is a key point in the government’s plan to provide water resources, roads and human settlement infrastructure for the long-term development.

Further, the report states that construction sector as a noteworthy contributor to the nation's economy, and in addition a crucial part of Indonesia's future improvement, the Indonesia construction industry today confronts some challenges such as increasing price of building materials, particularly imported ones along with transportation infrastructure a key restricting factor; however enhancing availability has, for some time, been perceived as a need by progressive governments and late moves look set to enhance conditions.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the construction industry. Further information about this report

Market Synopsis of Investment Analysis of Construction Industry in Indonesia

Indonesia is known as the second most productive and profitable construction market in Asia, where a huge number of construction projects are undergoing in both residential as well as non-residential sectors. For example, one of the head ventures which were started by the property developer named Lippo Karawaci is the Millennium Village and The Global Smart City which is situated on a 70 hectare in Lippon town. The development cost for these projects would be approximately $15 billion. In Indonesia, the construction industry has been growing 8% to 9% annually, due to huge demand for residential properties and growth of the property sector in major cities around the country. The public works investment is a key point in the government’s plan to provide water resources, roads and human settlement infrastructure for the long-term development.

The investment board in Indonesia is favoring to draw assets into the nation as it dispatches a huge framework program intended to quicken modernization and advanced development. Considering the historical trends, the GDP of the construction industry has grown at a higher rate than overall country’s GDP. From 2003 to 2013, the GDP has grown from 125.3 trillion RP to 907.3 trillion RP, where the industry accounts for around 10% of GDP.

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Scope of Report

The market report for Investment Analysis of Construction Industry in Indonesia of Market Research Future comprises of extensive primary research along with the detailed analysis of qualitative as well as quantitative aspects by various industry experts, key opinion leaders to gain the deeper insight of the market and industry performance. The report gives the clear picture of current market scenario which includes historical and projected market size in terms of value and volume.

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