The Indonesia Construction Market Report is Segmented by Sector (Commercial, Residential, Industrial, Infrastructure (Transportation) Construction, and Energy and Utilities Construction). The Report Offers Market Size and Forecasts in Terms of Value (USD) for all the Above Segments.

Indonesia construction market size is projected to exhibit a growth rate (CAGR) of 6.84% during 2024-2032. The rapid urbanization and industrialization, the growing awareness and emphasis on sustainable construction, continuous technological advancements and innovations in construction chemicals, and rising focus on improving the overall quality and aesthetics of construction projects represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on sector.

The Indonesia Commercial Construction Industry Report is Segmented by Type (Offices, Retail, Hospitality, Institutional, and Others). The Report Offers Market Size and Forecast for Indonesia Commercial Construction Market in Value (USD) for all the Above Segments.

In 2023, the gross domestic product growth rate for the construction sector in Indonesia was estimated to be around five percent, indicating a sharp increase from the previous year. Due to the COVID-19 crisis, many infrastructure projects in 2020 in Indonesia had been on hold. A significant increase in growth was seen in 2021, but it slightly decreased in 2022 by about 0.8 percent.

The Indonesian construction industry, valued at $284.17 million in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) of 7.50% from 2025 to 2033. This expansion is driven by several key factors. Firstly, significant government investment in infrastructure development, particularly in transportation projects like roads, railways, and ports, fuels substantial demand. Secondly, a growing population and rising urbanization necessitate the construction of new residential and commercial buildings, contributing to market expansion. Finally, the energy and utilities sector is undergoing significant upgrades and expansions, creating further opportunities for construction companies. Major players like Adhi Karya, Waskita Karya, and Samsung C&T are key beneficiaries of these trends, competing for large-scale projects. However, challenges remain. These include potential fluctuations in government spending, material cost volatility influenced by global commodity prices, and a need for skilled labor to meet the increasing demand. The industry's segmentation reflects these drivers, with commercial, residential, industrial, infrastructure (transportation), and energy & utilities construction sectors all contributing significantly to the overall market size. The consistent growth trajectory indicates a promising outlook for the Indonesian construction industry, albeit one subject to ongoing economic and logistical considerations. The forecast period of 2025-2033 presents considerable opportunities for both domestic and international construction firms. Growth within the residential sector is expected to outpace other segments due to rapid urbanization and a burgeoning middle class. Industrial construction will also see significant growth fueled by foreign direct investment and the expansion of manufacturing activities. Infrastructure projects, funded by both public and private sectors, will remain a crucial driver of overall market expansion. Strategic partnerships between local and international companies will play a vital role in leveraging expertise and resources to successfully navigate the market's dynamics. Furthermore, embracing sustainable construction practices and integrating innovative technologies will become increasingly crucial for companies to gain a competitive edge. Careful management of risks associated with regulatory changes, labor availability, and material costs will be essential for long-term success in this dynamic and expanding market. This report provides a detailed analysis of the Indonesian construction industry, offering invaluable insights for investors, businesses, and policymakers. With a focus on the period 2019-2033, including a base year of 2025 and a forecast period spanning 2025-2033, this study delves into market dynamics, key players, and future trends. The report utilizes high-search-volume keywords like "Indonesia construction market," "Indonesian infrastructure development," "Indonesian construction industry forecast," and "Southeast Asia construction," to ensure maximum online visibility. Key drivers for this market are: Government Policies and Regulatory Support, Tourism and Hospitality Sector Growth. Potential restraints include: Financial and Funding Challenges. Notable trends are: Growth of Infrastructural Plans Drives the Construction Market In Indonesia.

The Indonesia Data Center Construction Market Report is Segmented by Infrastructure (Electrical Infrastructure [Power Distribution Solutions (PDUs, Transfer Switches, Switchgear, Power Panels and Components, and Other Power Distribution Solutions), Power Backup Solutions (UPS and Generators), and Services (Design and Consulting, Integration, and Support and Maintenance)], Mechanical Infrastructure [Cooling Systems (Immersion Cooling, Direct-To-Chip Cooling, Rear Door Heat Exchanger, and In-Row and In-Rack Cooling), Racks, and Other Mechanical Infrastructures], and General Construction), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for the Above Segments.

Indonesia Construction Market size was valued at USD 23.5 Billion in 2024 and is projected to reach USD 37.8 Billion by 2032, growing at a CAGR of 6.1% from 2025 to 2032.

Indonesia Construction Market: Definition/ Overview

Construction is the methodical process of creating or constructing infrastructure, structures, and buildings via a collaborative effort of planning, designing, and carrying out numerous activities. It entails the use of various materials, tools, equipment, and professional personnel to construct everything from residential and commercial structures to highways, bridges, and other civil engineering projects while complying to safety regulations, construction rules, and architectural requirements.

Explore Indonesia's $280 billion construction market. Learn about growth drivers like urbanization, government initiatives, and smart city developments. Key players include Ciputra Group, PT Waskita Karya, and Sinar Mas Land.

The Indonesia Construction Equipment Market Report is Segmented by Equipment Type (Earthmoving Equipment (Excavators, Backhoe Loaders, Motor Graders, and Others (Bull Dozers, Etc. )), Road Construction Equipment (Road Rollers and Asphalt Pavers), Material Handling Equipment (Cranes, Forklift & Telescopic Handlers, and Others (Articulated Boom Lifts, Etc. ), and Other Construction Equipment (Concrete Pump Trucks, Dumpers, Tippers, Etc. ), and Drive Type (Hydraulic and Electric and Hybrid). The Report Offers the Market Size and Forecasts in Value (USD) and Volume (Units) for all the Above Segments.

In 2023, there were approximately 9.25 million people working in the construction industry in Indonesia. In the past few years, the construction industry in Indonesia has been experiencing increased growth as Indonesia's current president pledged to improve the nation's connectivity.

The Indonesia Construction Chemicals Market is segmented by End Use Sector (Commercial, Industrial and Institutional, Infrastructure, Residential) and by Product (Adhesives, Anchors and Grouts, Concrete Admixtures, Concrete Protective Coatings, Flooring Resins, Repair and Rehabilitation Chemicals, Sealants, Surface Treatment Chemicals, Waterproofing Solutions). Key Data Points observed include new construction floor area in residential, commercial, industrial and institutional sectors; existing construction floor area, infrastructure spending, and major infrastructure projects.

In 2023, preliminary figures showed the GDP of the construction sector in Indonesia was 2.07 quadrillion Indonesian rupiah. For the past few years, Indonesia’s President Joko Widodo has focused on developing infrastructures all over the nation to increase connectivity. Following the agriculture and retail sectors, the construction industry is one of the major contributors to Indonesia’s GDP. Construction workers in Indonesia Over eight million people were working in the construction industry in Indonesia. However, only 1.34 million of those were permanent workers as construction workers in Indonesia are usually hired as temporary or casual workers. Jakarta had the highest average wage for temporary construction workers in Indonesia, at slightly over 150 thousand Indonesian rupiah or 10.33 U.S. dollars daily. Following the increasing number of construction establishments in Indonesia, it is expected that the number of workers will also increase accordingly. Indonesia’s construction sector has been mainly focusing on Java Island Indonesia’s infrastructure build-up has been mainly focused on Java Island, where the current capital city, Jakarta, lies and where most of its population resides. Recently, the Indonesian government has started to shift its focus on developing its other islands. In August 2019, Indonesia's president announced that the capital city would be relocated to East Kalimantan as part of the strategy to reduce development inequality between Java and the other islands. It is thus expected that the gap between the value of total construction completed between Indonesian provinces would become smaller.

Indonesia Prefabricated Buildings Market size was valued at USD 8.0 Billion in 2024 and is projected to reach USD 13.23 Billion by 2031, growing at a CAGR of 6.5% from 2024 to 2031.

Indonesia Prefabricated Buildings Market Drivers

Government Support: Government initiatives and policies are promoting sustainable and efficient construction practices, encouraging the adoption of prefabricated buildings.

Rapid Urbanization: The rapid urbanization in Indonesia is leading to increased demand for housing and commercial spaces, which prefabricated construction can efficiently meet.

Labor Shortages and Rising Costs: Prefabricated construction can mitigate labor challenges and reduce construction timelines

Natural Disasters: Prefabricated buildings are often more resilient to natural disasters.

Indonesia Commercial Construction Market size was valued to be USD 14.5 Billion in the year 2024 and it is expected to reach USD 24.3 Billion in 2032, at a CAGR of 6.6% from of 2025 to 2032.

Indonesia Commercial Construction Market: Definition/ Overview

Commercial construction is the design, development, and construction of structures used for business and commercial purposes, such as office buildings, retail spaces, hotels, restaurants, warehouses, and industrial facilities.

This field of construction entails complicated projects that need specialist understanding of building rules, zoning restrictions, and commercial-grade materials, as well as an emphasis on usefulness, durability, and safety compliance.

The Indonesia Construction Equipment Rental Market size was valued at around USD 3.03 billion in 2022 & is projected to grow at a CAGR of about 4.82% during the forecast period 2023-28, owing to the rising construction of residential, commercial, and public infrastructures.

The Indonesia Construction Chemicals Market is experiencing robust growth, driven by significant infrastructure development initiatives and a burgeoning construction sector fueled by rapid urbanization and economic expansion. The market, valued at approximately $1.5 billion in 2025, is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated market size of $2.8 billion by 2033. Key drivers include government investments in large-scale infrastructure projects like roads, bridges, and airports, as well as rising demand for residential and commercial buildings. The increasing adoption of sustainable and high-performance construction materials, coupled with stringent building codes emphasizing durability and safety, is further bolstering market growth. Within the market, segments like concrete admixtures, waterproofing solutions, and adhesives are expected to witness particularly strong growth, driven by their crucial role in enhancing the quality and longevity of construction projects. However, challenges such as price volatility of raw materials and potential labor shortages could pose some restraints to market expansion. The competitive landscape is characterized by both domestic and international players, with companies like Sika AG, MAPEI S.p.A., and Saint-Gobain holding significant market share. The strong growth trajectory is expected to continue, fueled by long-term government plans for infrastructure development and sustained growth in the construction sector. Specific product segments, such as polyaspartic flooring resins, driven by their durability and aesthetic appeal, are poised for accelerated growth. Furthermore, increasing awareness of sustainable construction practices will drive demand for eco-friendly construction chemicals. Competition is likely to intensify with both established players expanding their product portfolios and new entrants seeking opportunities within this lucrative market. Strategic partnerships, mergers, and acquisitions are expected to play a key role in shaping the market's dynamics. Companies are focusing on innovation and product diversification to cater to the evolving needs of the construction industry and to gain a competitive edge. Indonesia Construction Chemicals Market: A Comprehensive Report (2019-2033) This in-depth report provides a comprehensive analysis of the Indonesia construction chemicals market, covering the period from 2019 to 2033. With a focus on the base year 2025 and a forecast period extending to 2033, this report offers invaluable insights into market size, growth drivers, challenges, and future trends for businesses operating in or considering entry into this dynamic sector. The report meticulously segments the market by end-use sector (residential, commercial, industrial, and infrastructure) and product type (adhesives, anchors & grouts, concrete admixtures, concrete protective coatings, flooring resins, repair & rehabilitation chemicals, sealants, surface treatment chemicals, and waterproofing solutions). This granular approach allows for a detailed understanding of specific market niches and their growth potential. The report also leverages a wealth of data from the historical period (2019-2024) to inform accurate estimations and forecasts. This analysis will help you navigate the complexities of this market and make informed business decisions. This report will be crucial for stakeholders including manufacturers, distributors, investors, and government agencies. Recent developments include: May 2023: Sika, a global leader in construction chemicals, acquired the MBCC Group, including its waterproofing solutions, anchors & grouts, flooring resins, repair & rehabilitation chemicals, and other businesses, with the exception of its concrete admixture operations in Europe, North America, Australia, and New Zealand.February 2023: Master Builders Solutions, an MBCC Group brand, inaugurated a new offshore grout production plant in Taichung, Taiwan, in order to meet the ongoing demand of the offshore wind turbine market.November 2022: Saint-Gobain's subsidiary, Chryso, introduced CHRYSO Dem Aqua 800, a vegetable oil emulsion-based mold release agent for different concrete applications to provide excellent surface finish quality, mold protection, HSE profile, and optimized consumption.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2024, the Indonesian construction sands market decreased by -15.5% to $3.5M, falling for the second consecutive year after two years of growth. In general, the total consumption indicated pronounced growth from 2012 to 2024: its value increased at an average annual rate of +2.2% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -17.4% against 2022 indices.

Indonesia Construction Index: Value of Construction Index: North Sumatera data was reported at 312.380 2010=100 in Dec 2018. This records an increase from the previous number of 303.200 2010=100 for Sep 2018. Indonesia Construction Index: Value of Construction Index: North Sumatera data is updated quarterly, averaging 25.820 2010=100 from Mar 1990 (Median) to Dec 2018, with 116 observations. The data reached an all-time high of 312.380 2010=100 in Dec 2018 and a record low of 0.880 2010=100 in Dec 1991. Indonesia Construction Index: Value of Construction Index: North Sumatera data remains active status in CEIC and is reported by Central Bureau of Statistics. The data is categorized under Indonesia Premium Database’s Construction and Properties Sector – Table ID.EE004: Construction Index: Value of Construction Index: by Province.

In 2023, there were approximately 143.66 thousand small construction establishments active in Indonesia. Indonesia's construction industry has experienced increased growth due to rising infrastructure constructions across the country.

Explore the Indonesia Construction Equipment Rental Market, focusing on demand for machinery, cost-effective solutions, and its role in infrastructure development