The construction industry in Indonesia is expected to expand by 4.1% in real terms in 2025. This will be supported by investments in transportation infrastructure projects, particularly rail and road infrastructure projects, coupled with rising public and private sector investments in housing and power construction projects. Furthermore, growth will also be supported by rising foreign direct investments (FDI) in the country. According to the Ministry of Investment and Downstream Industry, the FDI in the country reached IDR219.9 trillion ($13.7 billion) in the first quarter of 2025, marking a year-on-year (YoY) growth of 12.7%. Mining sector accounted for approximately 23% of the total realized investment in Q1 2025, which is equivalent to approximately IDR104.3 trillion ($6.5 billion).
The analyst expects the industry to register an average annual growth of 5.9% from 2026 to 2029, supported by rising investments in renewable energy, housing and transport infrastructure sectors. In April 2025, Indonesia’s sovereign wealth fund, Danantara, and Qatar announced plans to invest IDR64.2 trillion ($4 billion) in Indonesia. The funding will prioritize large-scale construction and infrastructure projects. This partnership aims to accelerate development in sectors such as transportation, energy, and urban development, supporting Indonesia’s ambitious growth targets. Among other recent developments, in April 2025, Indonesia launched Phase II (2025-2029) of construction for its new capital, Nusantara, with a state budget allocation of IDR44.9 trillion ($2.8 billion). This phase will focus on completing legislative and judicial complexes, expanding infrastructure, and maintaining existing amenities.
The analyst expects the industry to register an average annual growth of 5.9% from 2026 to 2029, supported by rising investments in renewable energy, housing and transport infrastructure sectors. In April 2025, Indonesia’s sovereign wealth fund, Danantara, and Qatar announced plans to invest IDR64.2 trillion ($4 billion) in Indonesia. The funding will prioritize large-scale construction and infrastructure projects. This partnership aims to accelerate development in sectors such as transportation, energy, and urban development, supporting Indonesia’s ambitious growth targets. Among other recent developments, in April 2025, Indonesia launched Phase II (2025-2029) of construction for its new capital, Nusantara, with a state budget allocation of IDR44.9 trillion ($2.8 billion). This phase will focus on completing legislative and judicial complexes, expanding infrastructure, and maintaining existing amenities.
The Construction in Indonesia - Key Trends and Opportunities to 2029 (Q2 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
