Construction in Indonesia Key Trends and Opportunities to 2019
Released on 14th May 2015
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Indonesias construction industry will continue to expand over the forecast period (20152019), with investment in infrastructure projects continuing to drive growth, in addition to the positive impact on construction stemming from increasing disposable income, a rising population, and greater urbanization. In real terms, the industrys output value is forecast to rise at a forecast-period compound annual growth rate (CAGR) of 7.87%, up from 6.62% during the review period (20102014). This is due to the governments focus on infrastructure and energy ...view middle of the document...
According to Indonesias National Development Planning Ministry, with a value of IDR601.0 trillion (US$52 billion), the government plans to offer 43 infrastructure construction projects in 2015 to the private sector. Projects include the construction of monorail, ports, rail, airports, toll roads and water infrastructure.
There are a number of large-scale residential and commercial projects underway. In January 2015, PT Lippo Karawaci Tbk (LPKR), a property developer, started to construct an integrated property project Millennium Village: The Global Smart City in the central business district of Lippo Village, Tangerang district of Banten province. Construction work for Hillcrest House and Fairview House apartment towers under the first phase is expected to be completed by mid-2018. Consequently, it will support the growth in the residential construction market over the forecast period.
Indonesia retail sales grew at a healthy pace in 2014. According to BI, the real retail sales index grew from 140.9 in 2013 to 161.3 in 2014, at an increase of 14.5%. The rise in retail sales represents a positive signal for the retail buildings construction category. Indonesias population of 254.9 million has a large consumer base and its retail industry has the potential to expand. This will drive construction activity in the retail buildings category over the forecast period.
In a bid to ensure a reliable electricity supply in industrial estate of Gresik, AKR Corporindo, an Indonesian fuel and chemical distributor, announced its plans in 2014 to construct two power plants in Gresik, with the combined capacity to generate 1,200MW. The project is scheduled for completion in 2018. This will support growth in the electricity and power category over the forecast period.
The Indonesian government aims to develop the healthcare sector across the country by 2019 through the universal healthcare program, Jaminan Kesehatan Nasional (JKN). Under the program, the government plans to construct 150 hospitals by 2019, which will drive up activity in healthcare buildings construction.
Table of Contents
1 Executive Summary
2 INDUSTRY OUTLOOK
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction
3 KEY ISSUES AND DEVELOPMENTS
4 MARKET DATA ANALYSIS
4.1 Construction Output and Value Add
4.1.1 Construction output by project type
4.1.2 Construction output by cost type
4.1.3 Construction output by activity type
4.1.4 Construction value add by project type
4.2 Commercial Construction
4.2.1 Commercial construction output by project type
4.2.2 Commercial construction output by cost type
4.2.3 Commercial construction output by activity type
4.2.4 Commercial construction value add by project type
4.3 Industrial Construction
4.3.1 Industrial construction output by project type
4.3.2 Industrial construction output by...