The Future of Construction in Indonesia to 2015: Stable Economic System, Controlled Inflation and Strong Banking Sector

19 Aug 2011 • by Natalie Aster

The Future of Construction in Indonesia to 2015: Stable Economic System, Controlled Inflation and Strong Banking Sector to Boost Investments in the Construction Industry

In 2010, the construction industry in Indonesia recorded growth of 15.2% and was supported by government stimulus measures in response to the global economic downturn. The government announced a stimulus package of IDR85.8 trillion (US$9.4 billion) in the 2010 draft budget for infrastructure spending, including projects to build seaports, airports, railways, roads, bridges, schools and irrigation works. Moreover, government investment in reconstruction after the 2004 tsunami and support through stimulus packages during the recession led to the Indonesian construction industry recording a CAGR of 26.30% during the review period. With continued investments across construction markets, the industry is expected to report a CAGR of 10.40% over the forecast period.

The report “The Future of Construction in Indonesia to 2015: Stable Economic System, Controlled Inflation and Strong Banking Sector to Boost Investments in the Construction Industry” by iCD Research provides a top-level overview, detailed market analysis, and category and company-specific insights into the operating environment for construction contractors. It is an essential tool for companies active across the Indonesian construction value chain and for new competitors considering entering the industry.

Indonesia is the third largest growing economy in the world’s G20 countries after China and India, and its economy remained resilient in the face of the 2004 tsunami and the global financial crisis between 2008 and 2009. According to The World Bank, Indonesia is the world’s eighteenth largest economy, with gross domestic product (GDP) of IDRXX.XX trillion (US$XX.XX billion) in 2010. This strong growth was primarily a result of the Indonesian government’s reform driven financial program and expenditure, coupled with the growth of emerging industries. In addition to this, the Indonesian government has identified ten priority industries that are expected to drive the country’s manufacturing industry and enhance industrial competitiveness. The country’s economy will also continue on a growth trajectory as a result of new economic zones, manageable inflation levels, and the improving investment climate. Bank Indonesia has predicted that the domestic economy will expand by XX.XX% to XX.XX% in 2011 and XX.XX% to XX.XX% in 2012.

Report Details:

The Future of Construction in Indonesia to 2015: Stable Economic System, Controlled Inflation and Strong Banking Sector to Boost Investments in the Construction Industry

Published: July, 2011
Pages: 151
Price: US$ 1,250.00

Report Sample Abstract

Industry Dynamics

Within the Indonesian construction industry, infrastructure construction was the largest market with a share of XX.XX% in 2010. Infrastructure construction was also the second fastest growing market, with a review period CAGR of XX.XX%. In terms of growth, the institutional construction market registered the highest review period CAGR of XX.XX% and is expected to record a CAGR of XX.XX% during the forecast period.

Historic Industry Value Review

The Indonesian construction industry was valued at IDRXX.XX trillion in 2010, a figure which represented an increase of XX.XX% compared with 2009, and a CAGR of XX.XX% over the review period.

Historic Industry Segmentation Review

In 2010, the largest market in the Indonesian construction industry was infrastructure construction, with a value of IDRXX.XX trillion, equal to XX.XX% of the total construction industry. The second largest market was industrial construction, with a value of IDRXX.XX trillion, followed by residential construction, with a value of IDRXX.XX trillion. Institutional construction was the fastest growing market in the Indonesian construction industry during the review period, with a CAGR of XX.XX%, followed by infrastructure construction with a CAGR of XX.XX% and residential construction with a CAGR of XX.XX%.

 

Industry Value Forecast

ICD expects the Indonesian construction industry to value IDRXX.XX trillion in 2015, compared to IDRXX.XX trillion in 2010. The industry is forecast to achieve a CAGR of XX.XX% over the forecast period.

Industry Segmentation Forecast

Infrastructure construction is forecast to be the largest market in the industry and is expected to value IDRXX.XX trillion in 2015. This represents a significant market share of XX.XX% despite a decrease of XX.XX percentage points compared with 2010. During the same period, the second largest market is forecast to be industrial construction, with a market share of XX.XX%.

More information can be found in the report “The Future of Construction in Indonesia to 2015: Stable Economic System, Controlled Inflation and Strong Banking Sector to Boost Investments in the Construction Industry” by iCD Research.

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