CIC - Construction Intelligence Center

Strong Infrastructure Growth in Indonesia Expected to Continue

16 Nov 2016

Strong growth in infrastructure construction is expected in Indonesia over the next five years; a continuation of the trend seen in the early part of this decade, according to a new report from Timetric’s Infrastructure Intelligence Center (IIC).

The total value of the infrastructure construction market reached US$157 billion in 2015, according to the Infrastructure Intelligence Center (IIC), and is expected to grow to US$269 billion by 2020 (in nominal value terms). This growth in spending is based on the assumption that a number of the large-scale infrastructure projects will move ahead as planned, most notably the Indonesia Power Program 35,000MW, the National Capital Integrated Coastal Development, and the Trans-Java and Trans-Sumatra Highways.


The IIC is currently tracking 317 large-scale infrastructure construction projects in Indonesia, at all stages of development, from announced to execution. These projects have a total investment value of US$431 billion. The electricity and power sector accounts for the largest share of the project pipeline, with a total value of US$223 billion.


According to the World Economic Forum’s Global Competitiveness Report 2015-2016, Indonesia scored 3.8 for the overall quality of its infrastructure (within a range of one to seven, with the higher the score reflecting a higher quality). This puts it in 81st place, which while not particularly high, does rank ahead of other southeast Asian countries such as the Philippines (106th) and Vietnam (99th). However, significant improvements to Indonesia’s infrastructure are required before it can be compared favorably with advanced economies.


The Indonesian government is committed to increasing private sector participation in infrastructure projects. Recent regulatory and policy reforms have created a more attractive environment for private sector investment, with the eligible infrastructure sectors for private investment being expanded and incentives for investment increased. While issues persist in this area, private sector participation is a crucial for Indonesia to continue its high economic growth pace and meet its infrastructure goals.



All Infrastructure, Output Value (US$ million), 2010, 2015, 2020



About this report


This information is taken from the Timetric report: ‘Infrastructure Insight: Indonesia'

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About the Infrastructure Intelligence Center


The Infrastructure Intelligence Center is the most comprehensive source of data and analysis on the global infrastructure industry. Our unique construction projects database tracks major new projects globally and can be contextualized with our forecasts of future project activity, rich market data and analysis as well as competitive intelligence and company activity to help companies understand market attractiveness and risks, and realise market opportunities.


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Source: Company Press Release