The analyst expects the Indonesian construction industry to expand by 4.1% in real terms in 2025. This will be supported by investments in transport infrastructure and energy projects, coupled with a slowdown in inflation rates and higher budget allocations. According to the Badan Pusat Statistik (BPS), the value-add of the construction industry grew by 3.6% year on year (YoY) in H1 2025, preceded by an annual growth of 7% in 2024. According to the Central Bank of Indonesia, the core inflation in August 2025 fell to 2.32%, compared to 2.37% in both July and June and 2.4% in May 2025; it is also well within the government’s 2025 target range of 2.5%. In July 2025, the Bali government announced IDR16.1 trillion ($1 billion) in funds to support the construction of real estate and tourism projects in Bali by 2029. Furthermore, in June 2025, the government announced the IDR1.3 quadrillion ($80 billion) seawall project from Banten to East Java, stretching 700km; the project will be constructed in phases across 20 years.
The analyst expects the industry to register an average annual growth of 5.8% from 2026 to 2029, supported by rising investments in housing, mining, and transport infrastructure sectors, along with energy projects. To support the energy sector, in August 2025, the government launched a plan to deploy 20GW of centralized solar projects, 80GW of other solar plants, and 320 gigawatt hours (GWh) of battery energy storage systems across 80,000 villages. Of the total 10,000 villages are projects to be completed in 2025. Additionally, in June 2025, the government revealed the 2025-2034 Electricity Supply Business Plan, which plans to add 69.5GW of new power generation capacity, with 76% coming from renewable sources. Of the total, 17.1GW will be from solar, 11.7GW from hydro, 7.2GW from wind, 5.2GW from geothermal, and the rest from other sources by 2034. Indeed, it will require an estimated cost of IDR2.9 quadrillion ($182 billion).
The analyst expects the industry to register an average annual growth of 5.8% from 2026 to 2029, supported by rising investments in housing, mining, and transport infrastructure sectors, along with energy projects. To support the energy sector, in August 2025, the government launched a plan to deploy 20GW of centralized solar projects, 80GW of other solar plants, and 320 gigawatt hours (GWh) of battery energy storage systems across 80,000 villages. Of the total 10,000 villages are projects to be completed in 2025. Additionally, in June 2025, the government revealed the 2025-2034 Electricity Supply Business Plan, which plans to add 69.5GW of new power generation capacity, with 76% coming from renewable sources. Of the total, 17.1GW will be from solar, 11.7GW from hydro, 7.2GW from wind, 5.2GW from geothermal, and the rest from other sources by 2034. Indeed, it will require an estimated cost of IDR2.9 quadrillion ($182 billion).
The Construction in Indonesia - Key Trends and Opportunities to 2029 (Q3 2025) 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 (2020-2024) and forecast (2025-2029) 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-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
