Construction Indonesia

11 - 14 SEPTEMBER 2024

Jakarta International Expo, Jakarta - Indonesia

Infrastructure projects remain a high priority for Indonesian goverment

The construction sector, especially the provision of physical infrastructure is one of the important sectors in the economic development system. Infrastructure becomes one of the pillars supporting the national economic growth. Based on data from the Central Bureau of Statistics (BPS) in 2016, the construction sectors is in the third position of source of economic growth with a contribution of 0.51 percent after the manufacturing sector and trade sector. The increase of construction sector makes the Indonesian economy in 2016 to grow by 5.02 percent, higher than in 2015 at 4.88 percent. In Q1 / 2017, Indonesia’s economy grew 5.01 percent (yoy) in Q1 / 2016. The rapid growth of the construction industry has transformed the construction sector into the largest contributor of Indonesia’s national income, with the contribution of the construction sector to the formation of Gross Domestic Product (GDP) also quite significant ie 10.38 percent or 4th after industry, agriculture, and trade sector.

The government of Indonesia still continues to focus on construction sector and infrastructure development as one of important factor to push the national economy. Acceleration of infrastructure development, will accelerate the national economic growth. Indonesia’s construction market is the largest in ASEAN, which accounts for 60-70 percent of total market in the region.

Indonesia’s Construction Sector on the Up & Up

A flurry of major infrastructure projects in Indonesia is set to boost the construction sector. Over the next four years the government aims to build: 5,500 km of railways, 2,600 km of roads, 1,000 km of toll roads, 49 dams and 24 seaports as well as to construct power plants with a combined capacity of 35,000 MW (Oxford Business Group).

According to the publication Asia Construction Outlook, Indonesia is the top rated country in terms of potential construction spending growth in the medium-term. Construction spending is forecast to grow about 5,2% per year in the 2014-2019 period which is above the regional average of 4,4%. In fact, the publication has identified Indonesia as the second most profitable construction market in Asia.

Major Opportunities

Indonesia’s construction will continue to thrive over the forecast period (2017-2021), driven by investment in infrastructure, energy, and residential projects. The construction industry’s output grew by 6.2% in the 2017 in real terms, following an average annual growth of 6.6% during the preceding four years.

Construction Indonesia attracts leading industry professionals and decision makers throughout the construction industry, making it the best place to network and meet potential buyers and key contacts. In its 20th edition, Construction Indonesia has clearly established itself as the biggest and the longest in history an International Construction Structure, Engineering, Procurement, and Equipment Exhibition. Held during 19 – 21 September 2018 at JIExpo Jakarta, will showcase more than 160 companies from 18 countries presenting the very latest In products and services for the construction equipment, heavy machinery, trucks and specialist vehicles, building technology, and building hardware.