3rd Exhibition of Construction Development 2 - 6 May 2018
Hall 3, Indonesia Convention Exhibition
BSD City - Indonesia

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Why Indonesia ?

  • AECOM's Asia Construction Outlook 2014 report rates Indonesia as the top country in terms of potential construction spending growth in the medium term and the positive trend is bound to continue amid the rising demand for housing and plans for public infrastructure.
  • High levels of capital investment, the construction industry handily outpaced Indonesia's overall economic growth over the past decade, and become an increasingly significant contributor to the country's GDP (accounts for roughly 10% of today's GDP), were growing from IDR 125.3 trillion in 2003 to IDR 907.3 trillion in 2013.
  • Housing needs, rail and road networks, ports and airports, power generation and distribution all point to growing demand as the country's economy matures and as the population grows in number and affluence. The industry's growth also spells attractive opportunities for suppliers of building materials and companies selling or leasing equipment.
  • Indonesia's rising personal income is driving demand forresidential and commercial property that puts the country squarely on the radar of the global construction industry.
  • Builders in Indonesia benefit from a large and relatively low-cost workforce as well as growing domestic output of cement and other materials.
  • The rising investment and government spending make Indonesia one of the most important construction markets in the world. Construction spending growth in Indonesia will remain among the strongest in the region.

Global construction companies have a strong foothold in Indonesia, particularly in complex infrastructure projects. Local businesses have seen the need to cooperate with foreign companies. As this is the most straightforward way for local private companies to get in on large-scale projects and transferring the know-how benefit simultaneously, which in turn will help them catch up and adapt to international standards.

The National Development Agency (BAPPENAS) estimated the infrastructure investment need for the period of 2015 through 2019 at IDR 7,200 trillion at the national level alone, only a quarter of which is to be funded out of the state budget. While state-owned enterprises will chip-in, the lion's share is expected to come from the private sector. This creates more favorable regulatory environment for PPP projects, including a more clearly defined process of land procurement that sets deadlines for various step involved. This should make private companies more enthusiastic about engaging in infrastructure development.

The accelerated realization of infrastructure development projects under the implementation of the Master Plan for Acceleration and Expansion of Indonesian Economic Development (MP3EI) is boosting economic growth of Indonesia. Of a total 40 MP3EI infrastructure projects, 15 investment projects worth Rp 36.2 trillion (US$3.72 billion) will begin groundbreaking in 2014 and the remaining projects, worth Rp 300.8 trillion, would begin by 2016.

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