Indonesia Construction

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What segments are driving growth in the sector?


Indonesia has a significant and growing shortfall of affordable housing. Existing supply is in poor condition, with rising demand for new units set to push the deficit beyond 15m units in 2018. Rising urbanisation is exacerbating the problem, and more than one-fifth of the urban population is now living in slums, presenting a major challenge...

Chapter | Construction & Real Estate from The Report: Indonesia 2018

Following several years of robust expansion supported by the launch and implementation of a major public infrastructure programme emphasising significant new transportation, utilities and social infrastructure builds, Indonesia’s construction industry is set to remain on a rapid growth path. State-owned enterprises continue to dominate the construction landscape, although the government has...

With investment in industrial zones, SEZs, infrastructure and priority industries set to increase in the coming years, Indonesia remains extremely well positioned to capitalise on its position as a regional leader.


The retail real estate sector is fast becoming one of the most intriguing property segments within Indonesia as the industry continues its evolution away from traditional markets and towards modern retail outlets. The increasingly affluent and globally minded population is creating growing demand for contemporary shopping experiences....


Although investment in the sector is still on the rise, Indonesia’s real estate sector is cooling in 2016 after several years of rapid growth, as muted economic expansion impacts consumer purchasing power and new project development. Despite recording moderate recent increases in sales and prices, residential growth has slowed from the double-...

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