Market Information

Breath of Fresh Air in Indonesia Construction and Infrastructure Industry

The government has vowed to continue the development of national strategic projects with the addition of 89 new projects of an estimated Rp 1.422 quadrillion in investment value.  New projects comprised 15 road and bridge projects, 13 dams and irrigation systems, 13 border infrastructure projects , 12 energy projects, 6 railway projects, 6 clean water projects, 5 airports, 5 seaports, 5 industrial zones, 3 technology projects, 3 smelters, one seawall, one waste management project and one land procurement project in Central Kalimantan.

Indonesia will focus on infrastructure projects and social programs worth $97 billion over the next five years as President Joko Widodo seeks to rescue Southeast Asia’s largest economy from the fallout of the coronavirus pandemic. The construction industry is expected to continue growing at a fast pace over the forecast period (2020-2024).

The government plans to spend IDR571 trillion (US$40 billion) on the development of transport infrastructure in Jakarta by 2029. Additionally, in May 2019, the government announced their plans to invest IDR6 quadrillion (US$412 billion) to develop country’s overall infrastructure during the period of 2020-2024. Furthermore, the government plans to add 430GW of new power plant capacity by 2050.

In addition, the government is expecting mining investments to reach US$7.75 billion this year, the highest projected amount between 2015 and 2024, fuelled by a tidal wave of smelter development projects.


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