Market Trends of Indonesia Facility Management Industry
This section covers the major market trends shaping the Indonesia Facility Management Market according to our research experts:
Manufacturing Sector to Become a Major Demand Driver
- The manufacturing sector in Indonesia has witnessed significant growth over the past decade and has become a major contributor to the country's economy. According to the Ministry of Industry, in the second quarter of 2021, the manufacturing sector's contribution to the national GDP amounted to 17.34%. Furthermore, major contributors from the sector were the food and beverage industry (6.66%) and pharmaceutical, traditional medicine, and chemical industries (1.96%).
- As facility management services help the manufacturing companies in minimizing the operational cost while maintaining a high level of service, an increasing number of companies have started adopting such solutions to streamline their manufacturing plants. Furthermore, the growing demand is also encouraging the facility management service providers to come up with innovative solutions.
- For instance, ISS Indonesia offers both strategic advice and operational know-how to keep the manufacturing plants compliant and safe to ensure production runs at its most optimal levels, without interruptions.
- Moreover, through the Ministry of Industry's Making Indonesia 4.0 roadmap, the Indonesian government plans to implement industry 4.0 to further accelerate the growth of the manufacturing sector. The roadmap includes establishing Indonesia's Digital Industry Center 4.0 in a smart building that will be home to Indonesia 4.0 showcase, artificial intelligence research and development, engineering, and supporting ecosystem for Industry 4.0. Such trends are expected to create further opportunities for the studied market during the forecast period.
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Growth of Construction activities in Commercial and Industrial Sector to Drive the Growth
- The past decade has witnessed significant growth in the demand for commercial infrastructure in Indonesia as an increased number of MNCs have set up their offices in the country. Some of the leading technology companies such as IBM, Microsoft, Oracle, Nielsen, Amazon, and Google have their offices in the country. According to International Finance Corporation (IFC), over 90 percent of all jobs in Indonesia are attributed to the private sector.
- Furthermore, increasing investment made by the Indonesian government to modernize their public infrastructure is further driving the growth of the construction sector in the country. For instance, the Indonesian government is building a new capital city in the country, which covers about 56,180 hectares in East Kalimantan province.
- As facility management services facilitate highly economical construction of the assets, helps to manage the workers efficiently as well as ensure that the required resources are in proper places and in working condition, the demand has been steady in the last few years.
- Furthermore, the country has also been witnessing increased construction of data centers which is a major driver for the facility management services. For instance, in April 2022, NTT launched a new data center in Indonesia. The new Jakarta 3 Data Center is located in Bekasi and includes a purpose-built four-story building with a 15.2 MW capacity and 18,000 sqm of IT space.
