Market Size of Indonesia Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Facility Management Market Analysis
The Indonesia Facility Management Market is expected to grow by registering a CAGR of 8.5% during the forecast period (2022-2027). The growth of the studied market in the country is primarily led by the growth of the construction sector, as in the past few years, the sector has seen continuous growth, owing to increased investment across public and private sectors.
- According to Statistics Indonesia, the GDP growth rate for the construction sector in the country was estimated to be around 2.81% in 2021. Additionally, as per the data provided by Statistics Indonesia and BKPM, a government agency, the FDI in the construction sector of the country amounted to approximately USD 93 million in 2021.
- Driven by the growing domestic consumption, the industrial sector in the country has also witnessed steady growth over the last few years. This entry of global players across various sectors has also boosted the growth of the local industries. For instance, in January 2022, LS Cable & System announced the completion of the construction of a 64,000 square meter power cable plant in Indonesia.
- Furthermore, the entry of global tech companies such as Microsoft, IBM, Google, and Amazon into the country is also driving the growth of the data center sector to support their digital infrastructure, which in turn is driving the demand for facility management services in the country. For instance, in November 2021, DCI Indonesia announced the opening of the first phase of its second data center campus outside Jakarta.
- Although, the growth of the above-mentioned sector has been driving the demand for facility management services. However, the penetration of these services is still low as compared to other countries such as China. The Integrated FM services are still in their nascent stage, which are expected to gain traction during the forecast period.
- A significant impact of COVID-19 has been observed in the country, as the reported COVID cases till May 6, 2022, accounted for 6,047,986. Owing to the imposition of stringent movement restrictions & widespread lockdown to curb the spread of the virus, the market witnessed a sudden slowdown in its value chain during the initial phase of the pandemic. However, with the widespread vaccination and slow down in the spread of the virus, the market is expected to gain traction and provide ample opportunities for the growth of the studied market.
