Indonesia Construction Industry Report 2023: Market to Grow by 4.2% in Real Terms in 2024, Before Recording an Average Annual Growth Rate (AAGR) of 6% from 2025 to 2027
Dublin, Jan. 18, 2024 (GLOBE NEWSWIRE) -- The "Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027" report has been added to * ResearchAndMarkets.com's* offering.
Indonesia's construction industry to grow by 4.2% in real terms in 2024, before recording an average annual growth of 6% from 2025 to 2027.
The industry's growth over the forecast period will be supported by the government's focus on infrastructure and energy development, coupled with investment in the development of the country's new capital Nusantara (IKN). In September 2023, the Indonesian parliament passed into law the IDR3.3 quadrillion ($216 billion) state budget for 2024.
The budget will support President Joko Widodo's (known as 'Jokowi') focus on accelerating development projects by the end of his second and final term next year, and includes investment in the construction of roads, smelters, and a government center in the IKN. As part of the 2024 state budget, the government announced an allocation of IDR422.7 trillion ($27.7 billion) to work on infrastructure projects next year; this marks the highest infrastructure budget in the last five years and is 5.8% higher than the 2023 infrastructure budget realisation that is expected to reach IDR399.6 trillion ($26.2 billion) this year.
Forecast-period growth in the Indonesian construction industry will also be supported by investment in the transport, energy, housing, and industrial sectors. The government is focusing on reducing greenhouse gas emissions and transitioning from coal to clean energy. In November 2023, the Indonesian government launched a new investment plan that will provide IDR305.3 trillion ($20 billion) in funding from global lenders to develop the country's renewable energy resources.
The investment proposal is known as the Comprehensive Investment and Policy Plan (CIPP), and is led by the US and Japan. Through this funding, the government now expects to increase the share of renewable energy in its total electricity mix from just 12% in 2022 to 44% by 2030. Previously, in September 2023, the state-owned utilities company Perusahaan Listrik Negara (PLN) announced that the country would require approximately IDR2.6 quadrillion ($172 billion) in funding by 2040, for building new renewable energy projects and carrying out improvements to the existing grid to add 60GW of new renewable capacity by that year.
Forecast-period growth in the construction industry will also be backed by ongoing works under the National Medium-Term Development Plan (RPJMN). Under the RPJMN to 2024, the government plans to develop 5,000km of new toll road, 3,000km of new national road, 38,726m of bridges, and 31,053m of flyovers and underpasses by 2024.
*Scope*
· Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Indonesia, featuring details of key growth drivers.
· Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
· Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
· Listings of major projects, in addition to details of leading contractors and consultants
*Reasons to Buy*
· Identify and evaluate market opportunities using the standardized valuation and forecasting methodologies.
· Assess market growth potential at a micro-level with over 600 time-series data forecasts.
· Understand the latest industry and market trends.
· Formulate and validate strategy using the critical and actionable insight.
· Assess business risks, including cost, regulatory and competitive pressures.
· Evaluate competitive risk and success factors.
*Key Topics Covered:*
*1 Executive Summary*
*2 Construction Industry: At-a-Glance*
*3 Context*
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
*4 Construction Outlook*
4.1 All Construction
· Outlook
· Latest news and developments
· Construction Projects Momentum Index
4.2 Commercial Construction
· Outlook
· Project analytics
· Latest news and developments
4.3 Industrial Construction
· Outlook
· Project analytics
· Latest news and developments
4.4 Infrastructure Construction
· Outlook
· Project analytics
· Latest news and developments
4.5 Energy and Utilities Construction
· Outlook
· Project analytics
· Latest news and developments
4.6 Institutional Construction
· Outlook
· Project analytics
· Latest news and developments
4.7 Residential Construction
· Outlook
· Project analytics
· Latest news and developments
*5 Key Industry Participants*
5.1 Contractors
5.2 Consultants
*6 Construction Market Data*
*7 Appendix*
For more information about this report visit https://www.researchandmarkets.com/r/e5pbk9
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