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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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...

 

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...

 

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

 

What are some of the major challenges facing the Indonesian real estate market?

 

Amid efforts to accelerate the delivery of large-scale infrastructure projects, reform of the country’s legal framework governing land ownership has become an important enabler of development. On the back of rising infrastructure growth in recent years, land procurement executors have been formally encouraged to acquire suitable land, with...