Indonesia Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Indonesia Construction Market Report is Segmented by Sector (Commercial, Residential, Industrial, Infrastructure (Transportation) Construction, and Energy & Utilities Construction). The Report Offers Market Size and Forecasts in Values (USD) for all the Above Segments.

Indonesia Construction Market Size

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Indonesia Construction Market Summary
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Study Period 2019-2029
Base Year For Estimation 2023
Market Size (2024) USD 284.17 Billion
Market Size (2029) USD 407.87 Billion
CAGR (2024 - 2029) 7.50 %
Market Concentration Medium

Major Players

Indonesia Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Indonesia Construction Market Analysis

The Indonesia Construction Market size is estimated at USD 284.17 billion in 2024, and is expected to reach USD 407.87 billion by 2029, growing at a CAGR of 7.5% during the forecast period (2024-2029).

  • While market experts continued to expect a broad recovery in Indonesia's infrastructure sector from 2022, the resurgence in COVID-19 cases in recent months and corresponding movement restrictions caused some operational disruptions. However, the impact was not as severe as in 2020 or in some other industries, as construction was still classified as an essential activity and was allowed to continue. The industry was impacted by delays in project implementation and the re-allocation of part of the government's budget toward COVID-19. The government re-allocated 20.4% of its 2020 budget (USD 1.7 billion) to COVID-19 relief measures.
  • The construction value for building projects was estimated to reach IDR 157.47 trillion (USD 10.97 billion) in 2022, driven by growth in the housing and industrial sectors. Trends in other categories, such as hotel, retail, and office, started to show positive growth compared to 2021, which was expected to boost the construction market in the coming years. In the residential market, the market size of apartments was expected to increase, while landed houses were projected to decrease slightly compared to 2021. Overall, the market size of landed houses was larger than that of apartments. The houses were dominated by the Greater Jakarta area, with suburbs in Bekasi, Bogor, and Tangerang as the dominant areas.
  • Meanwhile, apartments were dominated in DKI Jakarta Province. These findings indicated that landed houses continued the development trend in the suburbs, and apartments started to move toward recovery. The retail category trend was expected to grow in 2022. The construction of shopping centers was expected to increase slightly. Shophouses and retail outlets were projected to continue the upward trend in 2022. Retail was estimated to reach IDR 17.17 trillion (USD 1.19 billion) in 2022.
  • Office projects also showed an increasing trend, although slightly. Thus, the total construction projects in 2022 were estimated to reach IDR 15.14 trillion (USD 1.05 billion). The development of data centers might have increased its share significantly in 2022, i.e., IDR 4.59 trillion (USD 32.02 million) of the total value of office construction. Indonesia was the second most productive and profitable construction market in Asia, where many construction projects were underway in residential and non-residential sectors.
  • There is a huge demand for residential properties, and the property sector is growing in major cities across 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 long-term development. Indonesia's receptive stance toward China's Belt and Road Initiative (BRI) will be a boon to its construction industry over the next decade and help sustain the current rapid pace of development. Private and foreign capital is crucial in bridging the country's widening infrastructure gap.

Indonesia Construction Market Trends

Growth of infrastructural plans drives the construction market in Indonesia

  • As demand for these services continues to rise in Indonesia, the fourth most populous nation in the world, more data centers are soon to be built there. Indonesia is on track to overtake Singapore as the second-largest public cloud market in Southeast Asia. The country is already home to major cloud providers like Google Cloud, AWS, Microsoft Azure, and Alibaba Cloud. Equinix is currently trying to jump on board in Indonesia.
  • To establish its International Business Exchange (IBX) data center in Jakarta, the tech company will invest USD 74 million. The expansion is anticipated to make it possible for businesses in Indonesia and beyond to make use of its reliable platform to link and connect the basic infrastructure that underpins their operations.
  • Data across the first half of 2021 showed some signs of recovery, albeit at a much lower rate than the initial expectations. There remains a mixed picture for the remainder of the year. Since its peak in July, the caseload has improved, and restrictions have started to ease in Jakarta and some parts of Java. However, cases have continued to surge outside these regions.
  • The government initially allocated a substantial proportion (slightly under 50%) of the 2021 budget toward infrastructure development, although it had to renegotiate and reallocate funds for healthcare. As such, projects in the pre-construction phases may come under heavy pressure, particularly state-funded projects, impacting the growth for the remaining months of the year.
Indonesia Construction Market: Government budget for infrastructure, Indonesia, in trillion Indonesian rupiah, 2017-2022

Increased involvement of state-owned enterprises (SOEs) driving the market

  • More than 50% of construction roles are awarded to established Indonesian state-owned enterprises (SOEs) and companies such as Wijaya Karya, Adhi Karya Waskita Karya, and Pembangunan Perumahan. These SOEs are involved in major infrastructure projects across the market, such as the Patimban Deep-Sea Port in West Java or work relating to the Jakarta Mass Rapid Transit System.
  • Under the National Medium-Term Development Plan (2020-2024 RPJMN), the government plans to invest IDR6 quadrillion (USD 412 billion) in developing transport, industrial, energy, and housing infrastructure projects by 2024. In November 2020, the government announced the provision of IDR 42.38 trillion (USD 2.6 billion) for state-owned enterprises (SOEs) in 2021 to help boost their role in supporting the country's economic recovery by creating more jobs and conducting business activities.
Indonesia Construction Market: Share of construction roles by company nationality: Indonesia, in (%), 2022

Indonesia Construction Industry Overview

The Indonesian construction market needs to be more competitive and more cohesive with the presence of major local and international players. Key players in the market are Chiyoda Corp., Wijaya Karya, Toyo Construction Co. Ltd, TBEA Co. Ltd, Hyundai Engineering & Construction Co. Ltd, and many others. The Indonesian construction market presents opportunities for growth during the forecast period, which is expected to drive market competition. The market is fragmented, as many new entrants are focusing on bagging projects to strengthen their positions among the key players of the market.

Indonesia Construction Market Leaders

  1. Chiyoda Corp.

  2. Wijaya Karya

  3. Toyo Construction Co. Ltd

  4. TBEA Co. Ltd

  5. Hyundai Engineering & Construction Co. Ltd

*Disclaimer: Major Players sorted in no particular order

Indonesia Construction Market Concentration
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Indonesia Construction Market News

  • December 2023: Masdar entered into contracts with PLN, Indonesia’s state-owned public utility company, to propel significant development initiatives for Southeast Asia’s largest floating solar power plant (SPS) and investigate possibilities in green hydrogen. This collaboration has resulted in the initiation of the world’s largest floating solar power station (SPS) project, the 145MW “Cirata” (Cirata reservoir) in West Java, Indonesia, which commenced operations in December 2023.
  • December 2023: Gravel secured funding from NEA to bolster Indonesia’s thriving construction industry.

Indonesia Construction Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Impact of Government Regulations and Initiatives on the Industry

    4. 4.4 Review and Commentary on the Extent of China's Belt and Road Initiative

    5. 4.5 Comparison of Key Industry Metrics of Indonesia with Other ASEAN Member Countries (Analyst View)

    6. 4.6 Comparison of Construction Cost Metrics of Indonesia with Other ASEAN Member Countries (Analyst View)

    7. 4.7 Impact of COVID-19 on the market


    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION (Market Size by Value)

    1. 6.1 By Sector

      1. 6.1.1 Commercial Construction

      2. 6.1.2 Residential Construction

      3. 6.1.3 Industrial Construction

      4. 6.1.4 Infrastructure (Transportation) Construction

      5. 6.1.5 Energy and Utilities Construction


    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Chiyoda Corp.

      2. 7.2.2 Toyo Construction Co. Ltd

      3. 7.2.3 TBEA Co. Ltd

      4. 7.2.4 Hyundai Engineering & Construction Co. Ltd

      5. 7.2.5 Samsung C&T and Corporation

      6. 7.2.6 McConnell Dowell

      7. 7.2.7 Adhi Karya

      8. 7.2.8 PT PP (Persero)

      9. 7.2.9 Wijaya Karya

      10. 7.2.10 Waskita Karya

      11. 7.2.11 PT Jaya Konstruksi Manggala Pratama*

    3. *List Not Exhaustive

    1. 8.1 Existing Infrastructure

    2. 8.2 Ongoing Projects

    3. 8.3 Upcoming Projects


  10. 10. APPENDIX

**Subject to Availability
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Indonesia Construction Industry Segmentation

Construction includes any on-site physical work that involves erecting a structure, cladding, external finish, formwork, fixtures, installing services, and unloading equipment, supplies, or the like. 

The Indonesian construction market is segmented by sector (commercial, residential, industrial, infrastructure (transportation) construction, and energy & utilities construction).  

The report offers market size and forecasts in values (USD) for all the above segments.

By Sector
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction
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Indonesia Construction Market Research FAQs

The Indonesia Construction Market size is expected to reach USD 284.17 billion in 2024 and grow at a CAGR of 7.5% to reach USD 407.87 billion by 2029.

In 2024, the Indonesia Construction Market size is expected to reach USD 284.17 billion.

Chiyoda Corp., Wijaya Karya, Toyo Construction Co. Ltd, TBEA Co. Ltd and Hyundai Engineering & Construction Co. Ltd are the major companies operating in the Indonesia Construction Market.

In 2023, the Indonesia Construction Market size was estimated at USD 262.86 billion. The report covers the Indonesia Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Indonesia Construction Industry Report

Statistics for the 2024 Indonesia Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Indonesia Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)