Construction & Infrastructure Industry in Indonesia
Indonesia's construction sector is experiencing unprecedented growth with USD 412 billion in infrastructure projects, contributing 11% to national GDP. Government-backed National Strategic Projects (PSN) create massive opportunities for foreign and local investors.
USD 412B
Total Projects Value11%
GDP ContributionUSD 20B
Annual FDI7.2%
Annual Growth RateWhy Invest in Indonesia's Construction Industry?
Indonesia offers unparalleled opportunities in construction and infrastructure development, backed by strong government initiatives and growing urbanization.
Rapid Economic Growth
Indonesia is the largest economy in Southeast Asia with consistent 5%+ GDP growth, driving massive infrastructure needs and construction demand.
Government Support
National Strategic Projects (PSN) program with USD 412 billion investment creates guaranteed opportunities for construction companies.
Growing Population
With 280 million people and rapid urbanization, demand for residential, commercial, and infrastructure construction continues to surge.
Indonesia Construction Market Overview
The Indonesian construction industry is one of the fastest-growing sectors in Asia, driven by urbanization, infrastructure development, and government mega-projects.
Market Size: USD 91 Billion (2024)
Expected to reach USD 127 billion by 2029
Growth Rate: 7.2% CAGR
Fastest growing construction market in ASEAN
FDI: USD 20 Billion Annually
Construction sector is 2nd largest FDI recipient
Construction & Infrastructure Investment Sectors
Diverse opportunities across multiple construction segments
Transportation Infrastructure
USD 180BHighways, toll roads, bridges, railways, airports, and seaports development across the archipelago
Key Projects:
- Trans-Sumatra Toll Road
- Jakarta-Bandung High-Speed Rail
- New Capital City (IKN) Infrastructure
Commercial Development
USD 45BOffice buildings, shopping malls, hotels, mixed-use developments in major cities
Key Projects:
- Jakarta CBD Expansion
- Bali Tourism Infrastructure
- Industrial Parks
Residential Construction
USD 38BHousing projects, apartments, condominiums meeting growing urban population demands
Key Projects:
- Affordable Housing Program
- Luxury Residential Towers
- Suburban Townships
Energy & Utilities
USD 72BPower plants, renewable energy facilities, transmission infrastructure, water treatment plants
Key Projects:
- 35,000 MW Power Program
- Renewable Energy Projects
- Smart Grid Development
Healthcare Facilities
USD 12BHospitals, clinics, medical centers supporting expanding healthcare system
Key Projects:
- Regional Hospital Network
- Specialist Medical Centers
- Healthcare Technology Centers
Education Infrastructure
USD 8BSchools, universities, vocational training centers, and research facilities
Key Projects:
- University Campuses
- Vocational Centers
- Research & Innovation Hubs
Government Infrastructure Programs
Major government initiatives driving construction growth
National Strategic Projects (PSN)
USD 412 Billion Investment
A comprehensive infrastructure development program encompassing transportation, energy, tourism, and urban development projects nationwide.
Key Highlights:
- 223 Strategic Projects across Indonesia
- Guaranteed Government Backing for major projects
- Fast-track Licensing for PSN contractors
- Priority Funding from state banks
IKN Nusantara (New Capital City)
USD 33 Billion Megaproject
Construction of Indonesia's new capital city in East Kalimantan, creating unprecedented opportunities for construction companies and investors.
Development Phases:
- Phase 1 (2022-2024): Core government buildings
- Phase 2 (2025-2029): Infrastructure & utilities expansion
- Phase 3 (2030-2045): Full city development
- Target: 1.5 million residents by 2045
Foreign Investment Welcome!
The Indonesian government actively encourages foreign investment in construction and infrastructure. Start your construction business to participate in these mega-projects.
Construction Business Licensing in Indonesia
Essential certifications and licenses for construction companies
SBU (Sertifikat Badan Usaha)
MandatoryBusiness Entity Certificate for construction companies - mandatory for participating in government tenders and construction projects.
SBU Classifications:
- Bangunan Gedung (BG) - Building Construction
- Bangunan Sipil (BS) - Civil Engineering
- Instalasi (I) - Installation Works
- Konstruksi Khusus (K) - Special Construction
SKK (Sertifikat Kompetensi Kerja)
MandatoryWork Competency Certificate for construction professionals - required for technical personnel in construction companies.
Professional Categories:
- SKA - Certificate of Expertise (Architects, Engineers)
- SKT - Certificate of Skills (Technicians, Supervisors)
- BNSP Certification - National Professional Certification
How to Start a Construction Business in Indonesia
Step-by-step guide for foreign investors
Market Research & Planning
Identify your construction niche, analyze competition, and develop a comprehensive business plan for the Indonesian market.
Company Registration
Establish PT PMA (Foreign Investment Company) with appropriate share structure and capital according to construction business requirements.
Business Licensing (NIB)
Obtain NIB through OSS system with construction KBLI codes and secure necessary operational permits.
SBU Certification
Apply for SBU (Business Entity Certificate) in your chosen classification to qualify for government tenders.
Hire Certified Personnel
Recruit qualified staff with SKK certifications or sponsor existing team members for SKK certification.
Bid for Projects
Start bidding for government and private construction projects. Access tender information through official channels.
Need Professional Assistance?
Our experienced team can help you navigate the entire process, from company registration to SBU certification and beyond.
Get Free ConsultationTop Construction Investment Opportunities 2025
High-potential areas for foreign investors
Regional Infrastructure
USD 120B Opportunity
Development of infrastructure in tier 2 and tier 3 cities, connecting remote areas and boosting economic growth.
- Provincial road networks
- Water & sanitation systems
- Rural electrification projects
Smart Cities Development
USD 25B Opportunity
Integration of technology in urban development, creating sustainable and efficient cities across Indonesia.
- IoT infrastructure
- EV charging networks
- Smart building systems
Green Construction
USD 18B Opportunity
Sustainable and environmentally-friendly construction projects aligned with Indonesia's carbon neutrality goals.
- Solar-powered buildings
- Rainwater harvesting systems
- Green building materials
Construction Business Categories (KBLI Codes)
Official business classification codes for construction industry
KBLI Categories for Construction
Explore Indonesian Standard Industrial Classification (KBLI) business categories relevant to the construction sector. View all categories
Showing 12 of 32 categories for construction
View All 32 CategoriesNeed Help Choosing the Right KBLI Code?
Selecting the correct KBLI code is crucial for your NIB registration and business licensing. Our experts can help you identify the most appropriate classification for your business activities.
Need help selecting the right KBLI code for your construction business?
Browse All KBLI Codes Get Expert AdviceFrequently Asked Questions
Common questions about construction business in Indonesia
Ready to Enter Indonesia's Construction Market?
Let our experienced team guide you through company registration, SBU certification, and business setup. With over 10 years of experience serving international clients, we ensure your construction business launch is smooth and compliant.
