Indonesia Ready-mix Concrete Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Indonesia Ready-mix Concrete Market is Segmented by Application (Residential and Non-residential). The report offers market size and forecast in value (USD million) for the above-mentioned segment.

Indonesia Ready-mix Concrete Industry Overview

Indonesia Ready-mix Concrete Market Summary
Study Period: 2018 - 2028
CAGR: > 8 %

Major Players

Indonesia Ready-mix Concrete Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Indonesia Ready-mix Concrete Market Analysis

During the time frame of the forecast, the Indonesian ready-mix concrete market is expected to grow at a CAGR of more than 8%.

The COVID-19 pandemic caused lockdowns all over the country, messed up manufacturing and supply chains, and stopped all construction in the country. This had a big effect on the market in 2020. But in 2021, things started to get better, and the market continued to grow for the rest of the projection period.

  • One of the major factors driving the market forward is the increase in investments in the real estate sector. Furthermore, the superior technical features of ready-mix concrete offer it an advantage over conventional concrete, propelling the market forward.
  • On the contrary, the ease of availability of potential substitutes is expected to hinder the growth of the market studied.
  • More money is being put into commercial projects, and more people are learning about ready-mixed concrete. This is likely to lead to new opportunities in the future.

Indonesia Ready-mix Concrete Industry Segments

Ready-mixed concrete (RMC) is the type of concrete that is manufactured at a batching plant at a central factory and delivered to the job site to be used immediately. Because of its great qualities, RMC is used in foundations, walls, floors, bases, driveways, and other construction operations. The Indonesian ready-mix concrete market is segmented by application. By application, the market is segmented into residential and non-residential. The non-residential segment is further segmented into infrastructure, commercial, and industrial. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

Application
Residential
Non-residential
Infrastructure
Commercial
Industrial

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Indonesia Ready-mix Concrete Market Trends

Increasing Investments in the Real Estate Sector

  • The key drivers of Indonesia's construction sector growth are increased investments and construction activities in the residential and infrastructure sectors. Foreign direct investments are expected to fuel the Indonesian real estate sector.
  • In the post-COVID era, to make the infrastructure sector more investor-friendly, the country amended the law on public-private partnerships and passed new land purchase laws as well.
  • The official figures from Statistics Indonesia reflected that the gross domestic product (GDP) from real estate activities in Indonesia amounted to IDR 468.22 trillion (USD 29.85 trillion) in 2021, rising by a mere 3% as compared to the previous year.
  • The Indonesian government introduced the "One Million Houses’ (OMH) program to construct at least 1 million units per year. According to the Ministry of Public Works and Public Housing (PUPR), under the "One Million Houses" program, about 1,117,491 housing units were recorded until the end of 2022.
  • The first wave of Proptech in Indonesia began when the middle class wanted to buy more homes because the economy was getting better and helping it grow.Proptech is becoming more popular as a result of the high concentration of selling, purchasing, and leasing on search portal corporations.
  • Foreign direct investment into Indonesia (excluding investment in banking and the oil and gas sectors) increased by 10.1% Y-o-Y to a record high of IDR 122.3 trillion (USD 8.50 billion) in the fourth quarter of 2021, rebounding sharply from a 2.7% drop in the previous year.
  • In the past few years, new real estate projects in the country have driven the Indonesian property sector. Jakarta's architectural design and the building of the country's new capital have brought in investors from all over the world.
  • Thus, affordable housing projects in Indonesia, funded by the government, international investors, and organizations such as the World Bank, are expected to boost real estate market growth during the projected period. This in turn would lead to the growth of the ready-mix concrete market in the country during the forecast period.
Indonesia Ready-mix Concrete Market - Gross Domestic Product (GDP) from Real Estate Activities, In Trillion Indonesian Rupiah, Indonesia, 2017 - 2021

Increasing Infrastructural Construction Activities

  • Ready-mixed concrete is the best material for building buildings and other large structures made of concrete.It is used to build office buildings, hotels, stores, malls, dams, and roadways, among other things.
  • Growing demand for space in the e-commerce sector is driving up demand in the building sector. Investment in the private sector has also increased as transparency and returns have improved.
  • Indonesia had resumed the process of relocating its capital from Jakarta to Nusantara. In 2019, the project was announced for the first time. However, according to the Nusantara National Capital Authority (NNCA), the first phase of development began in the second quarter of 2022 and is expected to be finished by the end of 2024.
  • The total cost of the whole project is estimated to be around USD 31 billion, and it is expected that about 75% of the total finance will be covered through foreign investments.
  • Infrastructure development looks promising for Indonesia as well, with the government planning to invest over USD 400 billion between 2020 and 2024. The government intends to spend 60% of the budget on transport infrastructure, whereas 17% and 10% of the budget will be spent on the expansion of the country's power generation capabilities and water industry, respectively.
  • Furthermore, Indonesia plans to construct a 900 MW hydropower plant in Kayan River, North Kalimantan (Kaltara).The project is in the EPC stage, with a scheduled start-up date of 2022. The project is planned to be commissioned in 2025 after the construction is completed.
  • All of these things are likely to increase the demand for ready-mix concrete in the commercial sector of Indonesia over the next few years.
Indonesia Ready-mix Concrete Market - Number of Active Construction Establishments, By Type, in Thousands, Indonesia, 2022

Indonesia Ready-mix Concrete Market Competitor Analysis

The ready-mix concrete market in Indonesia is consolidated. The top players—SIG, PT Indocement Tunggal Prakarsa Tbk, Jayamix by SCG, PT Waskita Beton Precast Tbk, and Fosroc, Inc.—dominate the market primarily (in no particular order).

Indonesia Ready-mix Concrete Market Top Players

  1. SIG

  2. PT Indocement Tunggal Prakarsa Tbk

  3. Jayamix by SCG

  4. PT Waskita Beton Precast Tbk

  5. Fosroc, Inc

*Disclaimer: Major Players sorted in no particular order

Indonesia Ready-mix Concrete Market Concentration

Indonesia Ready-mix Concrete Market Recent Developments

  • January 2023: PT Waskita Beton Precast Tbk (WSBP) announced that the company has started supplying its first product for the Capital City of Nusantara (IKN) project in Penajam, East Kalimantan, since the end of January 2023. To support the accelerated completion target, WSBP deployed quality-ready mix production from the Sepaku Batching Plant (BP) with a production volume of 4,157 m3, which will continue to grow in the near future. The purchase of this project from IKN is undoubtedly a breath of fresh air for WSBP in terms of contract value acquisition. WBSP views IKN as a very attractive prospect since it has the potential to absorb needs that are core to the company's business.
  • February 2022: PT. Sinar Tambang Arthalestari announced that it has processed coal fly ash and bottom ash from the Adipala power plant into manufacturing materials for construction and infrastructure. The materials include cement-free ready-mix concrete and concrete blocks, among others.

Indonesia Ready-mix Concrete Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Investments in the Infrastructural Development

      2. 4.1.2 Superior Technical Properties over Standard Concrete

    2. 4.2 Restraints

      1. 4.2.1 Ease of Availability of Potential Substitutes

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size in Value)

    1. 5.1 Application

      1. 5.1.1 Residential

      2. 5.1.2 Non-residential

        1. 5.1.2.1 Infrastructure

        2. 5.1.2.2 Commercial

        3. 5.1.2.3 Industrial

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Fosroc Inc.

      2. 6.4.2 G&W Group

      3. 6.4.3 Jayamix by SCG

      4. 6.4.4 PT Adhimix Precast Indonesia

      5. 6.4.5 PT. Beton Indotama Surya

      6. 6.4.6 PT Indocement Tunggal Prakarsa Tbk

      7. 6.4.7 PT. Indonesian Concrete Fresh

      8. 6.4.8 PT Modern Panel Indonesia

      9. 6.4.9 PT. Sinar Tambang Arthalestari

      10. 6.4.10 PT Waskita Beton Precast Tbk

      11. 6.4.11 Readymix Concrete (B) Sdn Bhd

      12. 6.4.12 SIG

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Investments in Commercial Projects

    2. 7.2 Rising awareness of Ready-mix Concrete

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Indonesia Ready-mix Concrete Market Research FAQs

The Indonesia Ready-mix Concrete Market is studied from 2018 - 2028.

The Indonesia Ready-mix Concrete Market is growing at a CAGR of >8% over the next 5 years.

SIG, PT Indocement Tunggal Prakarsa Tbk, Jayamix by SCG, PT Waskita Beton Precast Tbk, Fosroc, Inc are the major companies operating in Indonesia Ready-mix Concrete Market.

Indonesia Ready-mix Concrete Industry Reports

In-depth industry statistics and market share insights of the Indonesia Ready-mix Concrete Market sector for 2020, 2021, and 2022. The Indonesia Ready-mix Concrete Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Indonesia Ready-mix Concrete Market report PDF.

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