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

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact Us

List of Tables

Table 1: Construction Industry Key Data
Table 2: Indonesia, Key Economic Indicators
Table 3: Indonesia, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: Indonesia, Top Commercial Construction Projects by Value
Table 5: Indonesia, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: Indonesia, Top Industrial Construction Projects by Value
Table 7: Indonesia, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: Indonesia, Top Infrastructure Construction Projects by Value
Table 9: Indonesia, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: Indonesia, Top Energy and Utilities Construction Projects by Value
Table 11: Indonesia, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: Indonesia, Top Institutional Construction Projects by Value
Table 13: Indonesia, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: Indonesia, Top Residential Construction Projects by Value
Table 15: Indonesia, Key Contractors
Table 16: Indonesia, Key Consultants
Table 17: Indonesia Construction Output Value (Real, $ Million)
Table 18: Indonesia Construction Output Value (Nominal, IDR Trillion)
Table 19: GlobalData Construction Market Definitions
Table 20: GlobalData Construction Market Definitions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: South and South-East Asia, Construction Output (Real % Change), 2024-30
Figure 2: Indonesia, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 3: Indonesia, Risk Summary
Figure 4: Indonesia, Risk Regional Comparison
Figure 5: Indonesia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 6: Indonesia, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 7: Indonesia, Construction Value-Add (2010 Constant Prices, IDR Trillion)
Figure 8: Indonesia, Value Index of Construction Completed by Construction Companies (2016 = 100)
Figure 9: Indonesia, Construction Projects Momentum Index
Figure 10: South and South-East Asia, Construction Projects Momentum Index
Figure 11: Indonesia, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 12: Indonesia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 13: Indonesia, Accommodation and Food Services Value-Add (2010 Constant Prices, IDR Trillion)
Figure 14: Indonesia, Wholesale and Retail Trade Value-Add (2010 Constant Prices, IDR Trillion)
Figure 15: Indonesia, Real Retail Sales Index (2010=100)
Figure 16: Indonesia, Commercial Property Demand Index for Office and Hotel Buildings (2017=100)
Figure 17: Indonesia, Number of Foreign Tourist Visits (in Thousands)
Figure 18: Indonesia, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 19: Indonesia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 20: Indonesia, Manufacturing Value-Add (2010 Constant Prices, IDR Trillion)
Figure 21: Indonesia, Total Value of Export ($ Billion)
Figure 22: Indonesia, Bank Indonesia Prompt Manufacturing Index (PMI-BI)
Figure 23: Indonesia, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 24: Indonesia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 25: Indonesia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 26: Indonesia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: Indonesia, Total Oil and Gas Exports ($ Million)
Figure 28: Indonesia, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 29: Indonesia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 30: Indonesia, Education Sector Value-Add (IDR Trillion, 2010 Constant Prices)
Figure 31: Indonesia, Health Services and Social Activities Value-Add (IDR Trillion, 2010 Constant Prices)
Figure 32: Indonesia, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 33: Indonesia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Indonesia, Real-Estate Value-Add (IDR Trillion, 2010 Constant Prices)
Figure 35: Indonesia, Residential Property Prices, 2018=100
Figure 36: Indonesia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 37: Indonesia, Headquarters of Key Consultants (% of Total Project Pipeline)

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