Indonesia's construction market to grow 8% in 2017

Monday, May 29, 2017

  • Construction sector turns into major drive of economic growth in the world’s fourth most populated country
  • Expectation grows for Indonesian construction industry’s leading exhibition, Konstruksi Indonesia and The Big 5 Construct Indonesia, returning at the Jakarta Convention Centre from 8-10 November 2017

Already South-east Asia’s largest economy, Indonesia has turned into the second most profitable construction market in the whole Asian continent. In 2017 only, USD 29 billion public investments are adding 10,198 meters of bridges, 13 airports, 61 seaports, 710 km of railway lines and 836 km of highway to the country’s infrastructure network.
The Indonesian government is also working to meet the growing demand for residential and commercial properties of the world’s fourth most populated country. Statistics of the booming Indonesian market speak volumes: the average annual demand for new houses is 800,000, and last year 100,000 M2 of retail floor space was delivered in the city of Jakarta alone.

“The country has averaged more than 5% annual GDP growth over the past decade but its construction market is forecast to expand even faster, with an 8.1% increase in 2017,” Andy Pert, Portfolio Exhibitions Director of The Big 5 Construct Indonesia, stated. “For this reason, there’s a burgeoning demand for building materials in the country, including stone, marble, ceramic flooring and concrete.”

Indeed, concrete consumption in Indonesia is expected to rise around 8% this year, reaching 68 million tons. Government-led infrastructure projects that also include the one million houses programme are among the main contributors to this surge. “Indonesia lags behind and the demand for these types of products will continue to grow,” Kam Kettin, president director of building materials retailer Depo Bangunan, told to the Oxford Business Group.

With 317 large scale construction projects currently active, there is still room for local and international construction players and manufacturers of high-quality building materials to do business in Indonesia. Last year, more than 320 companies from around the world participated at Konstruksi Indonesia and The Big 5 Construct Indonesia, the country’s leading platform for the infrastructure industry, which welcomed over 12,000 professionals.
“41% of our visitors in 2016 were interested in concrete and cement related products,” commented Mr. Pert. “For this reason, in line with the growing demand for building materials and the rapid expansion of the Indonesian construction market, The Big 5 Construct Indonesia 2017 is highly focusing on two new product sectors: Marble and Stone.” Running from 8 to 10 November at the Jakarta Convention Centre, and co-located with the Indonesia infrastructure Week 2017, Konstruksi Indonesia and The Big 5 Construct Indonesia are expected to attract a record number of buyers and manufacturers from around the world.

With innovative solutions needed in order to meet the growing industry needs, the event will be an unmissable platform to source the latest products and solutions for the Indonesian built environment. More than just an exhibition that facilitates networking and business opportunities, Konstruksi Indonesia and The Big 5 Construct Indonesia 2017 will also offer Continuous Professional Development (CPD) certified and free to attend workshops unveiling industry’s latest trends, innovations, challenges, opportunities and best practices.

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