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Construction Industry Investment Analysis Companies

The investment analysis of the construction industry in Indonesia involves evaluating market trends, government policies, and economic factors influencing the sector. Investors assess opportunities in infrastructure development, residential and commercial projects, and the regulatory environment to make informed investment decisions. Indonesia's construction industry presents growth prospects, driven by urbanization, population expansion, and government initiatives.

Investment Analysis of Construction Industry in Indonesia

September 2023


KT&G Corporation held an investment support ceremony with the Indonesian Ministry of Investment in order to obtain an investment support letter for the construction of its new manufacturing facility in the Indonesian province of East Java, which will serve as an export hub.


On September 6, 2023, the Indonesian Minister of Investment and KT&G CEO discussed KT&G's investment plan to open a new manufacturing facility in Indonesia, as well as the regulatory support that the Indonesian Ministry of Investment would provide.


After KT&G receives approval from the Indonesian Ministry of Investment to proceed with the planned investment, the Ministry will work with KT&G to finalize the details of its investment plan, and the Ministry will support KT&G to the fullest extent permitted by law. 


The new factory in Indonesia is scheduled to open in 2026, and it is expected that the produced goods will be exported to markets outside of Southeast Asia.  


March 2023


In an effort to accelerate the construction of the city, Indonesia has announced a number of new incentives for foreign companies to invest in its new capital. In the center of the Indonesian archipelago, on the island of Borneo, is the province of East Kalimantan, where Nusantara is currently being carved out of the red earth.


A new policy that was announced on March 6 states that companies who invest a minimum of 10 billion rupiah ($650,745) in new capital are eligible for a corporate tax holiday of up to 100%. The duration of these tax holidays differs by industry, but companies building Nusantara's public services and infrastructure will enjoy the longest tax holidays until 2035.


 

Investment Analysis of Construction Industry in Indonesia


The market report for Investment Analysis of Construction Industry in Indonesia of Market Research Future comprises of extensive primary research along with the detailed analysis of qualitative as well as quantitative aspects by various industry experts, key opinion leaders to gain the deeper insight of the market and industry performance. The report gives the clear picture of current market scenario which includes historical and projected market size in terms of value and volume.Investment Analysis of Construction Industry in Indonesia Market Size was valued at USD 23631.90 million in 2022. The Investment Analysis of Construction Industry in Indonesia industry is projected to grow from USD 25522.45 million in 2023 to USD 52034.71 million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.3% during the forecast period (2023 - 2032).


Indonesia is known as the second most productive and profitable construction market in Asia, where a huge number of construction projects are undergoing in both residential as well as non-residential sectors. For example, one of the head ventures which were started by the property developer named Lippo Karawaci is the Millennium Village and The Global Smart City which is situated on a 70 hectare in Lippon town. The development cost for these projects would be approximately $15 billion. In Indonesia, the construction industry has been growing 8% to 9% annually, due to huge demand for residential properties and growth of the property sector in major cities around the country. The public works investment is a key point in the government’s plan to provide water resources, roads and human settlement infrastructure for the long-term development.


The investment board in Indonesia is favoring to draw assets into the nation as it dispatches a huge framework program intended to quicken modernization and advanced development. Considering the historical trends, the GDP of the construction industry has grown at a higher rate than overall country’s GDP. From 2003 to 2013, the GDP has grown from 125.3 trillion RP to 907.3 trillion RP, where the industry accounts for around 10% of GDP.


Key Findings



  • As per MFRF analysis, it has been estimated that the majority of the market is dominated by non-residential properties approximately around 56.67% in 2015 as compared to residential construction activities.

  • The total spending in construction industry in Indonesia is accounted to USD XX Billion in 2015.

  • The annual production growth rate is accounted for XX % during the forecasted period.

  • The market share of Indonesia Construction Business is estimated around XX%.


Study Objectives of Investment Analysis of Construction Industry in Indonesia



  • To provide detailed analysis of the construction industry along with forecast for the next 5 years of the of the Indonesia Construction Market

  • To provide insights about factors affecting the market growth

  • To provide country-level analysis of the market with respect to the current market size and future prospective

  • To provide country-level analysis of the market for construction industry

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