The "Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

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.

Scope

• 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

Key Topics Covered:

1 Executive Summary

2 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

For more information about this report visit https://www.researchandmarkets.com/r/9gooce

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250702783885/en/