Indonesia Construction Market Size, Share, Growth, Trends, Report and Outlook 2025-2033

Indonesia Construction Market Overview

The Indonesia construction market size reached USD 117.0 Billion in 2024 and is projected to reach USD 217.5 Billion by 2033, with a CAGR of 7.13% during the forecast period 2025-2033. Growth is driven by rapid urbanization, industrialization, increasing infrastructure investments, and adoption of sustainable construction practices and modern technologies like BIM. The market encompasses key sectors including commercial, residential, industrial, infrastructure, and energy/utility construction.

Indonesia Construction Market Study Assumption Years

• Base Year : 2024
• Historical Year/Period : 2019-2024

Indonesia Construction Market Key Takeaways

• Current Market Size : USD 117.0 Billion (2024)
• CAGR : 7.13%
• Forecast Period : 2025-2033
• The market is expected to grow strongly due to rapid urbanization and industrialization.
• Rising foreign direct investments (FDI) contribute significantly to construction market growth.
• Infrastructure upgrades including roads, airports, and ports are major growth drivers.
• Adoption of sustainable construction practices and modern technologies, such as Building Information Modeling (BIM), enhances industry productivity.
• The expanding tourism sector increases demand in hospitality and leisure construction.
• The capital city relocation to Nusantara is a key investment catalyst.

Request Free Sample Report: https://www.imarcgroup.com/indonesia-construction-market/requestsample

Indonesia Construction Market Growth Factors

Construction market growth occurs because of urbanization and industrialization. Migrating into urban areas increases the demand on residential, commercial, and transport projects. FDIs in the construction market have increased, making Indonesia an attractive investment location. Expected growth in the construction market is further supported by rising project volumes and regulatory changes.

Infrastructure improvement, including roads, airports, ports and bridges is the main driver of growth of multiple sectors. The government investment in infrastructure sector encourages investment and increases demand of affordable housing and public infrastructure facilities. With an emerging middle class comes a need for housing and commercial real estate.

The adoption of more sustainable construction techniques and digital technology such as building information modeling (BIM) is increasing, delivering improved efficiency and quality in the face of rising awareness of environmental issues. The industry is also supported by a growing natural resource extraction infrastructure and a burgeoning post-natural disaster reconstruction market.

Indonesia Construction Market Trends

The Indonesia construction industry is benefiting from solid GDP growth. Demand for infrastructure, housing and commercial construction is being driven by the rapid urbanization, the growth in urban population and the pressure to provide better quality housing and working conditions in the cities.

Foreign direct investment projects in the construction sector are anticipated to help improve domestic capacity and fund projects. We will prioritize infrastructure investments to support economic activities. These investments include roads, airports, ports, and bridges.

Hotels and resorts are built due to middle class growth and tourism increase. Earthquakes and tsunamis, both common throughout Indonesia, create demand by rebuilding after a disaster, allowing for constant construction.
The environmental impact of construction has triggered the development of green standards and sustainable building. Newer technologies such as building information modeling (BIM) and automation are being implemented in the industry to increase productivity.

Market opportunities include the development of smart cities, digital infrastructure, modular construction, Internet of Things (IoT) and AI for construction management, and disaster-resilient construction. The future relocation of Indonesian capital to Nusantara is also expected to add greatly to the construction market.

Buy the Full Report for Complete Data, Trends, and Opportunities: https://www.imarcgroup.com/checkout?id=16996&method=1200

Indonesia Construction Market Segmentation

Sector Insights

• Commercial Construction: Covers office buildings, retail, and mixed-use developments, responding to urban demand and business growth.

• Residential Construction: Includes housing projects driven by population growth and urban migration for improved living standards.

• Industrial Construction: Comprises infrastructure for manufacturing, natural resource extraction, and processing facilities.

• Infrastructure (Transportation) Construction: Encompasses roads, bridges, airports, ports, and public transit systems key to economic connectivity.

• Energy and Utilities Construction: Focuses on power plants, utilities infrastructure, and sustainable energy projects supporting national energy needs.

Indonesia Construction Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Java dominates the market with the largest share due to dense population and economic activity. The region, along with others, is expected to experience a healthy CAGR of 7.13% during 2025-2033, supported by ongoing urbanization and infrastructure expansion.

Indonesia Construction Market Key Players

The report offers an in-depth examination of the competitive landscape, including market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Indonesia Construction Market Recent Developments & News

• In July 2025, the Indonesian government committed to completing the Nusantara capital city infrastructure within three years with a budget of Rp 48.8 Trillion (USD 2.96 Billion) allocated through 2028.

• In June 2025, the Ministry of Public Works and PT Hutama Karya confirmed that the 74.2 km Sigli-Banda Aceh toll road is 96.67% complete and will be finalized by end of 2025, enhancing Aceh's logistics.

• Also in June 2025, PT Semen Indonesia Tbk (SMGR) expanded its solar power capacity sixfold to 6.5 MWp, supporting sustainable cement production and lowering CO2 emissions aligned with its 2030 Sustainability Roadmap.

• In March 2025, PT Wijaya Karya (Persero) Tbk (WIKA) celebrated 65 years as a leading EPCC contractor, delivering 45 industrial plant projects and 43 power plants totaling over 14,800 MW capacity since 2004.

Indonesia Construction Market Key Highlights of the Report

• Comprehensive quantitative analysis of the market from 2019-2033.
• Detailed segmentation by sector and region with historical and forecast data.
• Insights into market drivers, challenges, and opportunities.
• Porter's five forces analysis to assess market competitiveness.
• Competitive landscape with company profiles and market strategies.
• Data provided in PDF and Excel formats with customization options.

Get Your Customized Market Report Instantly: https://www.imarcgroup.com/request?type=report&id=16996&flag=E

Customization Note: If you require any specific information not covered within this report's scope, we will provide it as part of the customization.

Explore More Research Reports & Get Your Free Sample Now:

Indonesia Health And Wellness Market: https://www.imarcgroup.com/indonesia-health-wellness-market/requestsample

Indonesia Coal Market: https://www.imarcgroup.com/indonesia-coal-market/requestsample

Indonesia Luxury Fashion Market: https://www.imarcgroup.com/indonesia-luxury-fashion-market/requestsample

IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel: (D) +91 120 433 0800
United States: +1-201971-6302

IMARC Group is a global management consulting firm that helps ambitious changemakers create a lasting impact.

The company offers comprehensive market assessment, feasibility studies, incorporation support, regulatory assistance, branding and strategy services, and procurement research.

This release was published on openPR.