Construction Sector in Indonesia

Property | Construction

Indonesia's Construction Material Sector

Indonesia's construction material industry has faced tough challenges over the last few years.

Steeling for Growth: Indonesia’s Value Added Steel Industry

Demand for steel in Indonesia has in recent years expanded at a rate largely unparalleled on the global stage. Opportunities are to be found in the manufacture of value added products catering to a growing automotive sector and a consumer base of rising purchasing power.

Index by sector

Building Materials

Indonesia's Construction Material Sector: Challenges Amid Flood of Imports

Indonesia's construction material industry has faced tough challenges over the last few years. The flood of cheap imported products from China, low domestic consumption, and oversupply have put pressure on the sector.

Indonesia’s Construction & Building Materials Sector On the Up & Up

As Indonesia’s real estate market has experienced growth in recent decades, the demand for building materials has skyrocketed. The domestic market for both the industrial and retail segment is thriving, with key players rapidly expanding production capacity of high-demand materials such as concrete.

Steeling for Growth: Opportunities in Indonesia’s Value Added Steel Industry

Demand for steel in Indonesia has in recent years expanded at a rate largely unparalleled on the global stage. Opportunities are to be found in the manufacture of value added products catering to a growing automotive sector and a consumer base of rising purchasing power.

Ceramics

Indonesian Tile Makers Riding on the Property Boom

Indonesia already makes the global top ten in both production and consumption of ceramic tiles; and the country harbours a lot more potential as the population grows, urbanization continues and incomes rise.

Construction

Construction Firms Find Strong Growth in Indonesia

Indonesia's emerging economy is in dire need of better infrastructure, while rising personal income is driving demand for residential and commercial property. These factors put the country squarely on the radar of the global construction industry.

Challenges in the Construction Sector

Indonesia’s construction sector faces limitations in terms of human resources, technology and capacity. This section looks at how the sector is faring and what is being done to develop the private sector of the industry to allow them to compete with state behemoths.

Paints & Coatings

Overview of the Indonesian Paint Industry: Still Promising Despite Slowdown

After experiencing a slowdown in 2015, Indonesia’s paint and coating industry has been on the rise again since 2016. The sector is expected to continue to grow robustly over the next five years driven by the government’s infrastructure and housing projects.

Indonesia Property Snapshot – Construction

Contribution to GDP: 10% (2016)
Number of Contractors: 77,000 (2015)
Number Employed in the Sector: 7 million (2016)
Standardised Qualification: ASEAN Chartered Professional Engineer (ACPE) certificate and the National Construction Services Development Board (LPJKN) certification.
Relevant Law: Presidential Regulation No. 39 of 2014 on the Negative Investment List reserves low-technology and low-risk construction services for local SMEs and cooperatives. Foreign companies can establish representative offices in Indonesia and execute complex and high-technology projects in partnership with local companies, Minister of Public Works Regulation No. 10/PRT/M/2014 provides the guidelines.