Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q3 2026)
Summary
The construction industry in Indonesia is expected to expand by 5.4% in real terms in 2026, supported by investments in energy and manufacturing projects. Indonesia is strengthening investment activity and expanding its financial infrastructure to support economic growth and development. In July 2026, the government revealed that the country attracted IDR1.1 quadrillion ($56.1 billion) in investment in the first half of 2026, up 7.2% year-on-year (YoY) and reaching 49.5% of its 2026 target of IDR2 quadrillion ($120.8 billion). This included IDR507.6 trillion ($30.7 billion) in foreign direct investment and IDR502.9 trillion ($30.4 billion) in domestic investment. In the same month, the Ministry of Finance revealed that the government expects the planned international financial center to attract IDR300-500 trillion ($16.7-$27.8 billion) in investment, supporting new foreign bank branches and business entities, with the government considering full corporate income tax and VAT exemptions within the centers.The analyst expects the industry to register an average annual growth of 5.9% from 2027 to 2030, supported by rising investments in transport infrastructure and renewable energy projects. Indonesia’s government proposed the 2027 State Budget in August 2026, with government spending of IDR4.1 quadrillion ($247.5 billion), up from IDR3.8 quadrillion ($232.4 billion) in 2026; revenue is projected at IDR3.4 quadrillion ($296.9 billion), resulting in a fiscal deficit of 2.4% of GDP, down from 2.7% in 2026. Boosting the industry’s output, Indonesia is 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 its Electricity Supply Business Plan (RUPTL) 2025-2034. Indonesia is planning an IDR1.2 quadrillion ($71.3 billion) solar energy program to develop around 100GW of solar capacity between 2026 and 2028, supported by 145.8GWh of battery storage, as announced by the government in August 2026.
The analyst’s Construction in Indonesia- Key Trends and Opportunities to 2030 (Q3 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

