Indonesia Construction Articles & Analysis

Chapter | Construction & Real Estate from The Report: Indonesia 2019

Supported by strong fundamentals, Indonesia continues to break ground on major construction projects. Fuelled by a comprehensive public infrastructure agenda, large-scale developments have become the norm. However, while the construction sector remains an important pillar of the country’s economy, project development is still hindered by domestic obstacles, including a lengthy land-acquisition...

The Indonesian economy had a strong year in 2018, with growth of 5.2% marking the fastest pace in half a decade. This came on the back of robust domestic consumption, increased foreign investment and continuing efforts to reform policy and simplify investment procedures, and despite challenges including a falling rupiah, a trade imbalance and global political issues.

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Supported by strong fundamentals, Indonesia continues to break ground on major construction projects. Fuelled by a comprehensive public infrastructure agenda, large-scale developments have become the norm. However, while the construction sector remains an important pillar of the country’s economy, project development is still hindered by...

 

As residents move away from rural areas, cities in Indonesia are increasingly feeling the pressures of urbanisation. To improve quality of life in increasingly congested urban centres, the government has adopted the 100 Smart City Movement, an initiative that aims to establish 100 technologically advanced cities across the archipelago by the...

 

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the globe. This mass rural-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon: in 1950, only 751m people lived in urban areas. By 2018, however, the number of urban...

 

On the back of a massive infrastructure agenda, new real estate projects have driven growth in Indonesia’s property sector in recent years. A colourful mix of cultures has influenced the architectural layout of the capital city Jakarta, which is one of the many features that have attracted investors from around the world. However, while the...

 

Indonesia has a significant and growing shortfall of housing. Existing supply is in poor condition and demand is rising for new units. This is especially true for affordable housing in urban areas, where more than one-fifth of the population live in slums. Recognising the issue, the government unveiled a series of policies aimed at...

 

To what extent is the government prioritising private sector participation, notably foreign contractors, in new construction projects?