Jakarta (VNA) – Indonesia’s construction industry will expand by 5.2% in 2024, according to a report by Research and Markets - the world's largest market research store.
The "Indonesia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028" report showed that the expansion is supported by rising foreign investment and an improvement in business confidence and economic conditions.
It cited the Badan Pusat Statistik (BPS)’s data as saying that the value-add of the construction industry rose by 7.6% year-on-year in the first quarter of 2024.
Over the year, the industry's growth will be supported by an allocation of 422.7 trillion IDR (27.7 billion USD) on infrastructure projects as part of the 2024 Budget approved in late 2023.
Of this, 213.7 trillion IDR will be invested to construct regional roads, developing the new capital city, renovating stadiums, and building educational and healthcare infrastructure, while 20.3 trillion IDR will be invested in developing infrastructure in the new autonomous regions and supporting public-private partnerships.
Over the remainder of the forecast period, from 2025 to 2028, the construction industry is expected to register an average annual growth of 6% in real terms, supported by public and private sector investment in transport, energy, and residential construction, coupled with the government's plan to achieve an annual production capacity of 600,000 electric vehicles (EVs) by 2030./.
