Infrastructure Sector In Indonesia - Growth, Trends, COVID - 19 Impact, And Forecast (2023 - 2028)

The Infrastructure Sector in Indonesia is Segmented by the Infrastructure Segment (Social Infrastructure [Schools, Hospitals, Defense, and Other Social Infrastructures], Transportation Infrastructure [Railways, Roadways, Airports, and Waterways], Extraction Infrastructure [Power Generation, Electricity Transmission and Distribution, Water, Gas, Telecoms], and Manufacturing Infrastructure [Metal and Ore Production, Petroleum Refining, Chemical Manufacturing, Industrial Parks and Clusters, and Other Manufacturing Infrastructures]). The report offers market size and forecasts in values (USD billion) for all the above segments.

Indonesia Infrastructure Sector Market Size

Indonesia Infrastructure Sector Market Summary
Study Period: 2019-2028
CAGR: 3 %

Major Players

Indonesia Infrastructure Sector Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Indonesia Infrastructure Sector Market Analysis

The infrastructure sector in Indonesia is estimated to record a CAGR of approximately 3% during the forecast period.

  •  Indonesia's government increased its infrastructure investments by USD 429.7 billion in 2020-2024, up by 20% from USD 359.2 billion in 2015-2019. After a decline brought on by the COVID-19 crisis, aggregate production in Indonesia significantly increased in 2021. The Indonesian government has initiated a program to upgrade basic infrastructure, including roads, airports, and seaports, which will likely stimulate demand for building materials. Infrastructure development was given IDR 414 trillion (USD 28.5 billion) in the country's 2021 state budget, a 47% increase from the 2020 budget.
  • According to the spokesperson of Volvo Construction Equipment, several ongoing significant projects are boosting the demand for aggregates and quarrying equipment in the nation.
  • Infrastructure financing through the country's Government and Private Cooperation Scheme reached 83 projects with a total investment of USD 40 billion. About 30 projects totaling USD 50 billion were generated for the non-government budget expenditure financing scheme.
  • In 2021, the PUPR Ministry continued its priority and strategic initiatives to improve national priority achievements, which include infrastructure and balanced regional growth, as well as the sustainability of food, energy, and living climate in the infrastructure sector. These national priorities are implemented through water resource management by improving quantity, quality, and water accessibility, which is covered by ongoing dam constructions (49 dams).
  • The large population and robust domestic demand in Indonesia are anticipated to result in favorable economic growth in the Indonesian infrastructure sector. With 250 million people, more than half of whom reside in cities, Indonesia has a sizable domestic market. Additionally, an expanding and wealthy middle class promotes GDP growth, with about 60% of GDP coming from private consumption.

Indonesia Infrastructure Sector Industry Segmentation

Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. Basic infrastructure in an organization or a nation comprises communication and transportation, sewage, water, a health and education system, safe drinking water, and a monetary system. 

The infrastructure sector in Indonesia is segmented by the infrastructure segment (social infrastructure [schools, hospitals, defense, and other social infrastructures], transportation infrastructure [railways, roadways, airports, and waterways], extraction infrastructure [power generation, electricity transmission, and distribution, water, gas, telecoms], and manufacturing infrastructure [metal and ore production, petroleum refining, chemical manufacturing, industrial parks and clusters, and other manufacturing infrastructures]). The report offers market size and forecasts in values (USD billion) for all the above segments.

By Infrastructure Segment
Social Infrastructure
Other Social Infrastructures
Transportation Infrastructure
Extraction Infrastructure
Power Generation
Electricity Transmission and Distribution
Manufacturing Infrastructure
Metal and Ore Production
Petroleum Refining
Chemical Manufacturing
Industrial Parks and Clusters
Other Manufacturing Infrastructures

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Indonesia Infrastructure Sector Market Trends

This section covers the major market trends shaping the Indonesia Infrastructure Sector Market according to our research experts:

Increase in Value of Civil Construction

The building industry is the fourth-largest contributor to Indonesia's GDP. Among all Asian countries, Indonesia has some of the highest levels of construction investment. The government's goal of building the archipelago's infrastructure to improve connection has helped the business thrive.

Java Island, Indonesia's most populous island and the location of its capital city, Jakarta, has been the center of the country's infrastructural development over the past several decades.

Despite the expansion of neighboring islands, the total value of its completed development projects is still more than 40 times greater than that of Bali and 30 times greater than that of Papua. The Indonesian government has been constructing toll roads across the country to lessen development disparities.

The Trans-Sumatra Toll Road, Indonesia's greatest infrastructure project, connects the northern and southern halves of Sumatra, the second-largest island in the archipelago and the sixth-largest island in the world.

More than 80% of Indonesia's construction businesses are small businesses that depend largely on local labor. The majority of Indonesia's construction employees are located in West Java. In Indonesia, finding a permanent construction job is still uncommon because most workers are contract day laborers who lack credentials and formal education. The Indonesian government has assisted these workers in getting the formal certification required to advance their careers in recent years.

Infrastructure sector in Indonesia-   Number of construction establishments in Indonesia from 2012 to 2021

Government's Infrastructural Development Plans

Increased geographical diversity is likely to be an emerging trend in the development of infrastructure in Indonesia. Although construction activity in recent years has been concentrated in Jakarta and the surrounding provinces of Banten and West Java, the Jokowi administration aims to decentralize business activity away from Java.

Many projects were proposed in the latest round of talks with Beijing in Jakarta, including four hydropower plants in North Kalimantan and coal-fired power plants, industrial parks, ports, and other facilities in Central Kalimantan, North Sumatra, North Sulawesi, and on the Bali resort island.

The Indonesian government has charged its state-owned business Pelindo II with creating and running an expansion of the current Tanjung Priok harbor in North Jakarta, Indonesia's main commercial port, to improve the quality and quantity of its infrastructure. This new port, which will operate as a port of the highest caliber, will be named New Priok Port or Kalibaru Port. The project's construction began in 2012 and is estimated to be completed by 2023.

Around IDR 365.8 trillion (USD 26.5 billion) was allotted by the Indonesian government for infrastructure in 2022, a decline of more than IDR 50 trillion (USD 0.32 billion). The total cost of finished civil construction in Indonesia was IDR 752.7 trillion (USD 90.89 billion) in 2020.

Infrastructure sector in Indonesia - Government budget for infrastructure in Indonesia from 2012 to 2022

Indonesia Infrastructure Sector Industry Overview

The report covers the major players operating in the Indonesian infrastructure sector. The market is fragmented and is expected to grow during the forecast period due to the rapid growth in infrastructure projects in the country. Some of the major players in the market are 

Indonesia Infrastructure Sector Market Leaders

  1. PT. Acset Indonusa TBK

  2. PT. Adhi Karya (Persero) TBK

  3. PT. Brantas Abipraya (Persero)

  4. PT. Hutama Karya (Persero)

  5. PT. Indonesia Pondasi Raya TBK

*Disclaimer: Major Players sorted in no particular order

Indonesia Infrastructure Sector Market Concentration

Indonesia Infrastructure Sector Market News

  • December 2022: SEAX Global/SEAX Indonesia Pratama successfully acquired an 8,400 square meter site in BSD Technopark, South Tangerang, Indonesia, for its new SEAX Global Data Center Campus. Although SEAX Global offers connection solutions throughout Singapore, Malaysia, and Indonesia. The new campus marks the company's entry into the data center market. SEAX, which now constructs, maintains and manages submarine and terrestrial cable assets throughout the area, made a strategic entry into the data center industry with the goal of providing seamless wholesale connectivity solutions throughout South East Asia.
  • October 2022: Equinix Inc., the leading provider of digital infrastructure, invested USD 74 million for the International Business ExchangeTM (IBX) data center to be built in the city core of Jakarta as part of its expansion into Indonesia. Through this development, Equinix will allow Indonesian enterprises and multinationals in the country to use its dependable platform to link and connect the basic infrastructure that underpins their companies.

Indonesia Infrastructure Sector Market Report - Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

      1. 4.1.1 Market Drivers

      2. 4.1.2 Market Restraints

      3. 4.1.3 Market Opportunities

    2. 4.2 Value Chain/Supply Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Insights

      1. 4.4.1 Current Economic and Infrastructure Market Scenario

      2. 4.4.2 Technological Innovations in the Industry

      3. 4.4.3 Impact of Government Regulations and Initiatives on the Industry

      4. 4.4.4 Impact of COVID -19 on the Market


    1. 5.1 By Infrastructure Segment

      1. 5.1.1 Social Infrastructure

        1. Schools

        2. Hospitals

        3. Defense

        4. Other Social Infrastructures

      2. 5.1.2 Transportation Infrastructure

        1. Railways

        2. Roadways

        3. Airports

        4. Waterways

      3. 5.1.3 Extraction Infrastructure

        1. Power Generation

        2. Electricity Transmission and Distribution

        3. Water

        4. Gas

        5. Telecoms

      4. 5.1.4 Manufacturing Infrastructure

        1. Metal and Ore Production

        2. Petroleum Refining

        3. Chemical Manufacturing

        4. Industrial Parks and Clusters

        5. Other Manufacturing Infrastructures


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 PT. Acset Indonusa TBK

      2. 6.2.2 PT. Adhi Karya (Persero) TBK

      3. 6.2.3 PT. Brantas Abipraya (Persero)

      4. 6.2.4 PT. Hutama Karya (Persero)

      5. 6.2.5 PT. Indonesia Pondasi Raya TBK

      6. 6.2.6 PT. Jagat Konstruksi Adipersada

      7. 6.2.7 PT. Jasa Marga (Persero) TBK

      8. 6.2.8 PT. Jaya Konstruksi Manggala Pratama TBK

      9. 6.2.9 PT. Kajima Indonesia

      10. 6.2.10 PT. Mitra Pemuda TBK*

    3. *List Not Exhaustive

  8. 8. APPENDIX

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Indonesia Infrastructure Sector Market Research FAQs

The Indonesia Infrastructure Sector is studied from 2019 - 2028.

The Indonesia Infrastructure Sector is growing at a CAGR of 3% over the next 5 years.

PT. Acset Indonusa TBK, PT. Adhi Karya (Persero) TBK, PT. Brantas Abipraya (Persero), PT. Hutama Karya (Persero), PT. Indonesia Pondasi Raya TBK are the major companies operating in Indonesia Infrastructure Sector.

Indonesia Infrastructure Sector Industry Report

Statistics for the 2023 Indonesia Infrastructure Sector market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Infrastructure Sector analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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