Indonesia Construction Market is Expected to Reach USD 535.98 Billion by 2030

Surge in infrastructure initiatives spearheaded by the government is driving the Indonesia construction market growth during the forecast period

The Indonesia Construction Market size was valued at USD 273.15 billion in 2024, and is projected to grow to USD 312.84 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 535.98 billion by 2030, with a CAGR of 11.4% from 2025 to 2030, according to the research by Next Move Strategy Consulting.

Indonesia construction market is experiencing strong growth, driven by substantial government-led infrastructure development, particularly in the transportation and energy sectors. In 2024, the Indonesian government allocated USD 27.6 billion for infrastructure through its State Budget, reflecting a 5.8% increase over 2023 and marking the highest infrastructure expenditure in five years. This momentum continued with the 2025 State Budget, approved in September 2024, which committed USD 26.6 billion toward infrastructure, including significant funding for the development of the new capital city, Nusantara, on Kalimantan Island.

Key projects include the USD 1.4 billion Jakarta elevated toll road, announced in November 2024 by Metro Pacific Tollways Corp, and the USD 57 billion National Railway Master Plan (RIPNAS 2030), which targets the expansion of Indonesia’s railway network to 10,524 kilometers by 2030. The government is also advancing public-private partnerships (PPPs), with 50 transportation infrastructure projects in progress, including 13 ports and 15 railways, supported by a USD 100 million loan from the Asian Development Bank. These initiatives aim to strengthen national connectivity, reduce logistics costs, and drive long-term economic growth.

However, regulatory complexity remains a significant barrier in the construction sector. Infrastructure projects face delays due to the multi-layered regulatory environment and extensive permitting procedures. Projects require approvals from various government bodies at local, regional, and national levels, covering zoning compliance, environmental assessments, building codes, safety standards, and other legal requirements. Lengthy approval timelines, bureaucratic inefficiencies, and regulatory inconsistencies across jurisdictions extend project durations and inflate costs. Unanticipated regulatory changes further disrupt execution and discourage investment.

On the other hand, the construction industry is undergoing a major digital transformation, led by the growing use of Building Information Modeling (BIM), which is unlocking new growth potential. BIM supports precise digital design, simulation, and infrastructure management, enhancing accuracy, coordination, and resource optimization. Reflecting this evolution, ALLPLAN released Allplan 2024-1 in April 2024 to strengthen BIM capabilities and streamline cloud-based workflows, signaling a shift toward fully digital project delivery. The integration of AI, IoT, and cloud technologies reinforces real-time collaboration, predictive maintenance, and intelligent facility management.

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Several market players operating in the Indonesia construction industry include PT Waskita Karya (Waskita), PT Adhi Karya (Adhi Karya), PT Pembangunan Perumahan (PP), PT Wijaya Karya (Wijaya Karya), PT Jasa Marga (Persero) Tbk (Jasa Marga), PT Totalindo Eka Persada (Totalindo), PT Surya Semesta Internusa (SSI), PT. Kajima Indonesia, PT. Balfour Beatty Indonesia, PT PP Presisi (PP Presisi), PT Acset Indonusa (Acset), PT Nindya Karya (Nindya Karya), PT Jaya Obayashi, PT PP (Persero) Tbk, Total Bangun Persada, and others.

Key Insights from the Indonesia Construction Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the Indonesia construction market trends is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The report provides the Indonesia construction market share of key players, along with a detailed competitive analysis.