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2022 Indonesia Construction Industry Databook Series: Government Encouraging Housing Provision for People Expected to Drive Growth

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Dublin, Feb. 08, 2023 (GLOBE NEWSWIRE) -- The "Indonesia Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Indonesia is expected to grow by 7.4% to reach IDR 10,26,652 billion in 2022.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Indonesia remains intact. The construction industry in Indonesia is expected to grow steadily over the next four quarters.

The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.2% during 2022-2026. The construction output in the country is expected to reach IDR 13,07,100.6 billion by 2026.

The construction industry across the Southeast Asian region is projected to record steady growth in 2022, and Indonesia is no different. Notably, the infrastructure spending by the Indonesian government on building the new capital city, along with its provision to offer housing to people, is expected to support the industry's growth in Indonesia from the short to medium-term perspective.

Notably, the government is also working with international partners for its nationwide smart cities program, which is expected to bring in foreign investment in the Indonesian construction industry. However, the rising interest rates, along with labor shortages and higher material costs, can hamper the profit margins of construction firms in the country. Overall, the publisher maintains a positive growth outlook for the construction industry in Indonesia over the next three to four years.

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Indonesia begins the construction activities for the US$34 billion new capital city

With the government pushing ahead with its ambitious US$34 billion new capital city, the construction activities began for the government buildings in August 2022. Notably, the Indonesian government is also planning to start developing the infrastructure at Nusantara, including the construction of sanitation, toll roads, and water systems.

To bring more wealth and development outside the island of Java, Indonesia plans to move its capital to East Kalimantan. Notably, Nusantara is planned as an environmentally friendly city that will make use of renewable energy entirely. The publisher expects the construction activities of the new planned capital city to keep supporting the growth of the industry in Indonesia from the short to medium-term perspective.

Government encouraging housing provision for people expected to drive residential construction sector growth

Globally, governments have launched and implemented affordable housing programs to boost homeownership among locals. This has resulted in increased spending in the residential construction sector, driving the growth of the construction industry around the world. Notably, similar trends are visible in Indonesia. For instance,

  • In August 2022, the Ministry of Public Works and Public Housing affirmed that the Indonesian government would continue to encourage the provision of housing for people in the country. Through the Housing Financing Liquidity Facility scheme, the government offered housing assistance amounting to IDR 29 trillion in 2022 and is projected its value to reach IDR 32 trillion in 2023 for building a minimum of 220,000 houses.

  • Under the Housing Loan Program for Housing Financing Liquidity Facilities (KPR FLPP), the Indonesian government disbursed funds worth IDR 97.44 trillion for people from the low-income group (MBR) from 2010 to June 2022, helping build 1.1 million housing units across the country.

These innovative government programs to boost house ownership are expected to keep supporting the growth of the residential construction industry in Indonesia over the next three to four years.

Construction of a high-speed railway network to support the industry growth in Indonesia

To boost the railway network in the country, as part of the Belt and Road Initiative of China, the ongoing construction activities are offering support to the construction industry in Indonesia. For instance,

  • The construction of the Jakarta-Bandung high-speed railway in Indonesia, which is in part funded by the Belt and Road Initiative, is projected to be fully completed in 2023. Notably, the Jakarta-Bandung high-speed railway also tested its first trains on August 5, 2022. These infrastructure construction projects will keep assisting the industry growth in Indonesia in H2 2022.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Indonesia. KPIs covered include the following:

  • Market size by value

  • Market size by volume of construction

  • Number of units

Indonesia Top Cities Construction Data

Indonesia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Housing type (multi family, single family)

  • Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)

  • Price point/income level (luxury, mid-tier, affordable)

  • Construction stage (new construction, re-development & maintenance)

Indonesia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Green building by Housing type (multi family, single family)

  • Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)

  • Green building by Price point/income level (luxury, mid-tier, affordable)

Indonesia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Office (further broken down by Grade A, Grade B, and Grade C)

  • Retail (further broken down by Grade A, Grade B, and Grade C)

  • Hospitality (further broken down by Grade A, Grade B, and Grade C)

  • Restaurant (further broken down by Grade A, Grade B, and Grade C)

  • Entertainment

  • Sports facility

  • Construction stage (new construction, re-development & maintenance)

Indonesia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Office green building construction

  • Retail green building construction

  • Hospitality green building construction

  • Restaurant green building construction

  • Entertainment green building construction

  • Sports facility green building construction

  • Other commercial green building construction

Indonesia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

Indonesia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Healthcare construction

  • Educational construction

  • Public sector

  • Construction stage (new construction, re-development & maintenance)

Indonesia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

  • Healthcare green building construction

  • Educational green building construction

Indonesia Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

  • Marine and inland water infrastructure

  • Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

  • Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

  • Construction stage (new construction, re-development & maintenance)

Indonesia Green Infrastructure Construction: 10- year market size & forecast in value terms

Reasons to buy

  • In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Indonesia.

  • Top Ten Cities Construction Value Data

  • Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

  • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

  • City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

For more information about this report visit https://www.researchandmarkets.com/r/d76c6j

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