The construction industry in Indonesia is expected to expand by 5.4% in real terms in 2026, supported by investments in energy and industrial projects, along with government’s reforms and policies to boost overall economic output. According to the Badan Pusat Statistik (BPS), the construction industry’s value-add grew by 5.5% year on year (YoY) in Q1 2026, preceded by YoY growths of 3.9% in Q4 and 4.2% in Q3 2025. In April 2026, the Indonesian government announced that construction work on five waste-to-energy projects in the country will commence in June 2026. Once completed, these plants are estimated to process more than 7,000 tons of waste per day. Furthermore, the government’s target of building three million housing units annually through 2029, under the ‘3 Million Housing Program’, will also accelerate private and public investments in the housing sector. Additionally, the Indonesian government aims to increase the nation's economy by 5.8% to 6.5% by the year 2027, and by 8% by 2029, driven majorly by increasing revenue through state control of top commodity exports such as palm oil and thermal coal.
Growth over the forecast period will also be driven by the National Long-Term Development Plan (RPJPN) 2025-2045 and the Medium-Term Plan (RPJMN) 2025-2029, which targets advanced industrialization, increased global competitiveness and incentivizing public-private partnerships in infrastructure development. Additionally, Indonesia is also planning to add 69.5GW of new generation capacity by 2034, of which 42.6GW will come from renewable energy sources with an estimated investment of IDR3.1 quadrillion ($185 billion), under the Electricity Supply Business Plan (RUPTL) 2025-2034. Furthermore, Indonesia’s residential real estate market is also experiencing a period of steady expansion, supported by rising public and private investments in addressing Indonesia's severe housing deficit. Among the recent developments in the housing sector, the Indonesian sovereign wealth fund, Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), in March 2026, announced an allocation of IDR16 trillion ($1 billion) to fund a massive, subsidized apartment project in Meikarta, Cikarang. The project includes the construction of 18 residential towers, each 32 stories high, offering approximately 140,000 apartment units.
Growth over the forecast period will also be driven by the National Long-Term Development Plan (RPJPN) 2025-2045 and the Medium-Term Plan (RPJMN) 2025-2029, which targets advanced industrialization, increased global competitiveness and incentivizing public-private partnerships in infrastructure development. Additionally, Indonesia is also planning to add 69.5GW of new generation capacity by 2034, of which 42.6GW will come from renewable energy sources with an estimated investment of IDR3.1 quadrillion ($185 billion), under the Electricity Supply Business Plan (RUPTL) 2025-2034. Furthermore, Indonesia’s residential real estate market is also experiencing a period of steady expansion, supported by rising public and private investments in addressing Indonesia's severe housing deficit. Among the recent developments in the housing sector, the Indonesian sovereign wealth fund, Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), in March 2026, announced an allocation of IDR16 trillion ($1 billion) to fund a massive, subsidized apartment project in Meikarta, Cikarang. The project includes the construction of 18 residential towers, each 32 stories high, offering approximately 140,000 apartment units.
The Construction in Indonesia - Key Trends and Opportunities to 2030 (Q2 2026) report provides detailed market analysis, information, and insights into the Indonesian construction industry, including:
- The Indonesian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Indonesian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Indonesia. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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 our 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 business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
