Indonesia Construction Sector Report 2025-2026

Indonesia's construction sector is a key driver of economic growth and a major contributor to employment. The sector generates a tenth of the national gross domestic product (GDP) and employs more than 9mn people. In recent years, the sector has been supported in the main by the government's ambitious agenda for infrastructure development as the country seeks to improve and expand its connectivity network to reduce the development gap between the western and eastern areas. The administration of the new President Prabowo Subianto has prioritised a substantial affordable housing programme, aiming to construct 3mn homes annually throughout his tenure. This initiative directly addresses Indonesia's significant housing backlog, which stood at 12.7mn units as of January 2025. In terms of cost, Indonesia remains one of Asia's more competitive construction markets. The average cost to build in the capital Jakarta is USD 942.8 per square metre, placing it 15th among the 22 Asian markets, according to Turner & Townsend's 2025 Global Construction Market Intelligence report.

This report provides a complete and detailed analysis of the "Construction" sector for Indonesia. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Construction" sector in Indonesia
• Crystallise the forces both driving and restraining this sector in Indonesia
• Ascertain Indonesia’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in Indonesia.
• Build a clear picture of trends, output and consumption for specific sub-sectors