Indonesia Construction

Indonesia’s construction sector will likely be a bright spot in an otherwise subdued economic growth story in 2016, as the country’s widening infrastructure gap and recent fuel subsidy reforms have driven a surge of new government spending into a massive public infrastructure programme.

Although public infrastructure projects including highways, ports and rail continue to dominate Indonesia’s construction landscape, the hotel segment is fast becoming a major growth driver for private contractors, with Jakarta standing as one of the world’s largest hotel construction markets, driven by rising foreign visitor arrivals and the...

The cement industry in Indonesia is set to reach new highs in 2016, as the government’s expansive infrastructure agenda drives domestic demand and sales growth across the country. Existing producers are rushing to increase capacity with the launch of new facilities, while a host of new foreign players has also entered the market in recent...

A burgeoning middle class is expected to play an important role in consumer lending growth in Indonesia, particularly in the home loans segment. In 2015 PwC reported that the country’s growing middle class has created positive growth potential in consumer banking, particularly mortgage loans, with 56% of the banks it surveyed indicating that...