Market Size of Indonesia Infrastructure Sector Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 95.78 Billion |
| Market Size (2029) | USD 126.27 Billion |
| CAGR (2024 - 2029) | 5.68 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Infrastructure Market Analysis
The Indonesia Infrastructure Sector Market size is estimated at USD 95.78 billion in 2024, and is expected to reach USD 126.27 billion by 2029, growing at a CAGR of 5.68% during the forecast period (2024-2029).
- Indonesia's government increased its infrastructure investments by USD 429.7 billion in 2020-2024, up 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, including infrastructure, balanced regional growth, and 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, 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.
