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Although Indonesia is home to one of the fastest-growing construction industries in Asia, with foreign direct investment (FDI) inflows to the sector surging between 2013 and 2015, FDI dropped to a seven-year low in 2016, even as the number of new projects increased.

 

With tourist arrivals up by over 15% in 2016 and ambitious sector development plans under way, Indonesia’s hotel segment is widely expected to see healthy expansion in the coming years. This follows on from strong performance across the hospitality industry over the past half decade.

 

Following several years of robust expansion supported by the launch and implementation of a major public infrastructure programme emphasising significant new transportation, utilities and social infrastructure builds, Indonesia’s construction industry is set to remain on a rapid growth path. State-owned enterprises (SOEs) continue to dominate...

 

What logistics and infrastructure challenges does public transport face, and what is currently being done to address these issues?

 

A growing middle class and rising levels of urbanisation have supported rapid real estate growth in Indonesia, and there remains substantial room for expansion in the coming years.

 

With expansion being driven by its low-cost workforce, the progress of Indonesia’s manufacturing segment has bolstered employment figures over the years, providing 15.5m jobs and contributing 20.5% to GDP in 2016. With increased investment across a variety of subsectors, employment in the manufacturing sector is expected to grow by 5% in 2017...

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