Indonesia Construction Market by Type (Renovation, and New Construction), by Construction Method (Traditional, Prefabricated/Modular, 3D-Printed, and Green/Sustainable), by Contractor Type (Large Contractor, Medium Contractor, and Small Contractor), and Sector (Real Estate, Commercial, Infrastructure, Industrial) – Industry Trends and Forecast, 2025–2030
Industry: Construction & Manufacturing | Publish Date: 09-Jun-2025 | No of Pages: 111 | No. of Tables: 108 | No. of Figures: 53 | Format: PDF | Report Code : CM2221
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Indonesia Construction Industry Overview
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.
The market is experiencing rapid growth, primarily driven by substantial government-led infrastructure investments, including the development of the new capital city Nusantara and major transportation projects like the Jakarta elevated toll road and the National Railway Master Plan.
With record-high infrastructure allocations in the 2024 and 2025 state budgets and increased foreign and domestic investments, particularly in transportation and renewable energy, the market is seeing significant momentum.
However, growth is challenged by complex regulatory frameworks that cause delays and increased costs. At the same time, the integration of digital technologies such as BIM, AI, IoT, and cloud solutions is presenting lucrative opportunities for efficiency and innovation across construction processes.
Government-Led Infrastructure Projects Drives the Indonesia Construction Market Growth
Indonesia construction market is undergoing robust growth, largely propelled by a surge in government-led infrastructure development, particularly in the transportation and energy sectors.
In 2024, the Indonesian government allocated USD 27.6 billion for infrastructure under its State Budget, marking a 5.8% increase from 2023 and representing the highest infrastructure spending in the past five years.
This momentum continued with the 2025 State Budget, approved in September 2024, which earmarked USD 26.6 billion for infrastructure, including substantial funding for the ongoing development of the new capital city, Nusantara, on Kalimantan Island.
Prominent projects include the USD 1.4 billion Jakarta elevated toll road announced in November 2024 by Metro Pacific Tollways Corp, and the ambitious USD 57 billion National Railway Master Plan (RIPNAS 2030), aimed at expanding Indonesia’s railway network to 10,524 kilometers by 2030.
The government is also actively promoting public-private partnerships (PPPs), with 50 transportation infrastructure projects such as 13 ports and 15 railways underway in 2024, supported by a USD 100 million loan from the Asian Development Bank. These efforts are strategically designed to improve national connectivity, lower logistics costs, and stimulate long-term economic growth.
Surge in Infrastructure Investment Propels the Indonesia Construction Market Trends
The construction market in Indonesia is witnessing significant expansion, driven by increased investments in infrastructure-related projects. In 2024, the sector attracted USD 55.1 billion in total investments, with foreign direct investment (FDI) rising 16.1% year-on-year to USD 28 billion and domestic investment increasing 29.4% to USD 27 billion, according to the Ministry of Investment and Indonesia Investment Coordinating Board.
The transportation sector led with USD 27 billion, driven by projects like the USD 33.7 billion Trans-Sumatra toll road, while the energy sector secured USD 24 billion, including a USD 5 billion solar power and storage facility in the Riau Islands by Quantum Power Asia and IB Vogt.
Additionally, the state utility Perusahaan Listrik Negara (PLN) plans to invest USD 172 billion by 2040 to add 60 GW of renewable energy capacity, with 31.6 GW targeted by 2033. Such investment propels the Indonesia construction market demand for construction in the country.
Regulatory Complexities Hinders the Indonesia Construction Market Expansion
Overcoming regulatory complexities poses a significant challenge in the Indonesia construction market. Infrastructure projects often encounter hurdles due to the intricate network of government regulations and permitting procedures.
Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at local, regional, and national levels. These mandates encompass adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various regulatory requirements.
Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly prolong project timelines and inflate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for the Market Expansion
The Indonesia construction market is experiencing a major digital shift, fueled by the growing implementation of Building Information Modeling (BIM), which is unlocking new growth opportunities. BIM enhances digital design, simulation, and infrastructure management by improving accuracy, collaboration, and resource efficiency.
Highlighting this trend, ALLPLAN introduced Allplan 2024-1 in April 2024, aimed at strengthening BIM functionality and streamlining cloud-based workflows signaling the industry's move toward fully digital project execution. Additionally, the integration of AI, IoT, and cloud technologies is driving real-time collaboration, predictive maintenance, and smarter facility management.
Competitive Landscape
The key 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.
Indonesia Construction Market Key Segments
By Type
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Renovation
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New Construction
By Construction Method
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Traditional Construction
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Prefabricated/Modular Construction
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3D-Printed Construction
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Green/Sustainable Construction
By Type of Contractor
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Large Contractor
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Medium Contractor
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Small Contractor
By Sector
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Real estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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PT Waskita Karya (Waskita)
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PT Adhi Karya (Adhi Karya)
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PT Pembangunan Perumahan (PP)
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PT Wijaya Karya (Wijaya Karya)
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PT Jasa Marga (Persero) Tbk (Jasa Marga)
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PT Totalindo Eka Persada (Totalindo)
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PT Surya Semesta Internusa (SSI)
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PT. Kajima Indonesia
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PT. Balfour Beatty Indonesia
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PT PP Presisi (PP Presisi)
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PT Acset Indonusa (Acset)
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PT Nindya Karya (Nindya Karya)
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PT Jaya Obayashi
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PT PP (Persero) Tbk
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Total Bangun Persada
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 273.15 Billion |
|
Revenue Forecast in 2030 |
USD 535.98 Billion |
|
Growth Rate |
CAGR of 11.4% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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