Investment Analysis of Construction Industry in Indonesia

An analyst from Market Research Future (MRFR)’s team said: “The construction market in Indonesia plays an integral part in the financial progress of the country. The construction market in Indonesia is one of the rapidly developing markets in South-East Asia. In 2015, the construction business accounted for 11.92% of Indonesia’s GDP. The construction sector has contributed significantly to the infrastructure development in the country and thereby to the tourism industry in the country over the past few years.”

According to the report, Indonesia is known as the second most productive and profitable construction market in Asia, where a huge number of construction projects are undergoing in both residential as well as non-residential sectors. The majority of the market is dominated by non-residential properties approximately around 56.67% in 2015 as compared to residential construction activities.

In Indonesia, the construction industry has been growing 8% to 9% annually, due to huge demand for residential properties and growth of the property sector in major cities around the country. The public works investment is a key point in the government’s plan to provide water resources, roads and human settlement infrastructure for the long-term development.

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Further, the report states that construction sector as a noteworthy contributor to the nation’s economy, and in addition a crucial part of Indonesia’s future improvement, the Indonesia construction industry today confronts some challenges such as increasing price of building materials, particularly imported ones along with transportation infrastructure a key restricting factor; however enhancing availability has, for some time, been perceived as a need by progressive governments and late moves look set to enhance conditions.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the construction industry. Further information about this report