The construction value added in Indonesia has exhibited a steady upward trajectory from 2013 to 2023, growing from 86.605 Billion US Dollars to 123.38 Billion US Dollars. This consistent growth reflects sustained investment in the construction sector, with recent years showing moderate year-on-year increases. From 2018 to 2023, the Compound Annual Growth Rate (CAGR) has stabilized between 3% to 4%, indicating a mature market with predictable growth trends. Notably, the year-on-year variation has been gradually decreasing, signifying a stabilizing market environment.
The forecast from 2024 onwards continues this trend, with the construction value expected to reach 140.79 Billion US Dollars by 2028. The forecasted 5-year CAGR stands at 2.08%, suggesting a slight deceleration in growth compared to previous periods. However, the overall 5-year growth rate is anticipated to be 10.86%, which still demonstrates robust expansion.
Future trends to watch for:
- Emerging technologies in construction, such as automation and advanced manufacturing, which could enhance productivity and reduce costs.
- Government infrastructure projects and policies that could spur further growth in the sector.
- Sustainability initiatives and green building practices becoming more prominent in construction projects.
