According to IMARC Group’s report titled "Indonesia Construction Market Size, Share, Trends and Forecast by Sector, and Region, 2026-2034" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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Indonesia Construction Market Overview

The Indonesia construction market size reached USD 125.4 Billion in 2025. It is projected to reach USD 226.1 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 6.77% during the forecast period 2026-2034. Market growth is driven by rapid urbanization, industrialization, rising foreign direct investments (FDI), infrastructure upgrades, and adoption of sustainable and modern construction technologies like Building Information Modeling (BIM). The report presents a thorough review featuring the Indonesia construction market analysis, share, trends, and research of the industry.

Indonesia Construction Market Key Takeaways

• Current Market Size : USD 125.4 Billion in 2025
• CAGR : 6.77%
• Forecast Period : 2026-2034
• The market growth is attributed to rapid urbanization and industrialization.
• Rising foreign direct investments (FDI) and infrastructure upgrades in roads, airports, and ports bolster growth.
• Adoption of sustainable construction practices and modern technologies like BIM drives efficiency.
• Increasing demand for housing and commercial spaces fueled by population growth and a burgeoning middle class.
• Natural disaster reconstruction efforts boost ongoing construction activities.

Indonesia Construction Market Growth Factors

• Rapid urbanization creating demand for residential, commercial, and transportation infrastructure.
• Expansion of industrialization attracting increasing foreign direct investments (FDI).
• Infrastructure upgrades including roads, airports, and ports to support economic expansion.
• Growing middle-class population driving demand for housing and commercial developments.
• Flourishing tourism industry impacting hospitality and leisure-related constructions.
• Reconstruction due to natural disasters such as earthquakes and tsunamis sustaining demand.
• Rich natural resources like minerals, coal, and palm oil requiring infrastructure and facilities.
• Adoption of sustainable building practices and green building standards responding to environmental concerns.
• Integration of modern construction technologies such as Building Information Modeling (BIM) and automation enhancing productivity.

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Indonesia Construction Market Trends

• Indonesia's robust economic growth directly accelerates construction demand.
• Rapid urban migration leads to increased projects in housing, office spaces, and transportation.
• Rising foreign direct investments enhance the sector's appeal for developers.
• Infrastructure of ports, airports, roads, and bridges requires significant improvements.
• The middle-class demographic shift supports increased commercial and residential developments.
• The tourism sector growth triggers construction in hospitality and leisure sectors.
• Reconstruction needs persist due to vulnerability to earthquakes and tsunamis.
• Awareness of environmental issues fosters adoption of sustainable construction practices.
• Modern technologies such as BIM and automation improved efficiency and industry productivity.

Indonesia Construction Market Segmentation

Sector Insights:

• Commercial Construction: Involves building spaces for business and commercial activities.
• Residential Construction: Covers construction of housing and dwellings for the population.
• Industrial Construction: Includes factories, processing plants, and industrial facilities.
• Infrastructure (Transportation) Construction: Encompasses roads, airports, ports, and related structures.
• Energy and Utilities Construction: Addresses facilities related to energy generation and utility services.

Indonesia Construction Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The dominant region includes Java, contributing a significant market share with continued growth driven by urbanization and infrastructure projects. The overall market exhibits a CAGR of 6.77% during the forecast period.

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 reaffirmed its commitment to the Nusantara capital city (IKN) construction, allocating Rp 48.8 Trillion (USD 2.96 Billion) through 2028 to complete core infrastructure in three years.
• June 2025 saw the Ministry of Public Works and PT Hutama Karya announce the near completion of the 74.2 km Sigli-Banda Aceh toll road, part of the Trans-Sumatra Toll Road, poised to enhance logistics in Aceh.
• PT Semen Indonesia Tbk (SMGR) increased solar power capacity sixfold to 6.5 MWp in June 2025 to support sustainable construction, aligning with its 2030 Sustainability Roadmap.
• PT Wijaya Karya (Persero) Tbk (WIKA) celebrated 65 years in March 2025, highlighting its expertise in EPCC projects, including numerous industrial plants and power projects totaling over 14,800 MW.

Indonesia Construction Market Key Highlights of the Report

• Comprehensive quantitative analysis of market segments and trends from 2020-2034.
• Insightful details on market drivers, challenges, and opportunities specific to Indonesia.
• Porter's Five Forces analysis to assess competition and market attractiveness.
• Detailed profiles and competitive landscape analysis of key market players.
• Historical and forecast data coverage for sector-wise and regional market assessments.

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