Sector
Construction
As of 2022, Indonesia’s population stands at 275.8 million, a 1.17 percent growth from 272.7 million in 2021. With such a large population, Indonesia exhibits an exceptionally high demand for construction services. The total value of completed construction work in 2022 reached US$98.3 billion, with US$56.26 billion attributed to civil construction, US$32.87 billion to building construction, and the remaining US$9.17 billion to special construction work.
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Construction
As of 2022, Indonesia’s population stands at 275.8 million, a 1.17 percent growth from 272.7 million in 2021. With such a large population, Indonesia exhibits an exceptionally high demand for construction services. The total value of completed construction work in 2022 reached US$98.3 billion, with US$56.26 billion attributed to civil construction, US$32.87 billion to building construction, and the remaining US$9.17 billion to special construction work.
Subsequently, Indonesia’s construction sector has experienced accelerated growth. In 2023, its gross domestic product (GDP) reached US$133.7 billion with an annual growth rate of 4.91 percent – more than double the rate of 2022, which stood at 2.01 percent. The sector’s stable growth in 2023 is further reflected on a quarter-basis; from Q2 to Q3, the construction sector grew by 5.87 percent, and from Q3 to Q4, it grew by 5.84 percent.
The prospects of the construction sector are on the rise as the price of construction materials stabilized around 2023 following the end of the pandemic. Notably, the price index for the construction of public facilities, buildings, roads, and bridges recorded a 0.17 deflation from November to December 2023, leading to a slight deflation of 0.08 percent on the price index for construction.
The construction sector has also been seeing increasing interest from foreign investors. Throughout 2023, total foreign direct investment (FDI) that flowed into the sector reached US$281.8 million, a significant increase compared to the total FDI of US$165.3 million that the sector absorbed in 2022.
Meanwhile, the total number of construction businesses has been decreasing slightly over the years from a total of 197,030 businesses in 2022 to 190,677 businesses in 2023. Considering the rapid growth of the sector, this decrease in construction businesses is attributed more to mergers and acquisitions rather than the businesses’ ceasing operations. Additionally, it is worth noting that in 2023, the total number of Construction Labor Certificates (SKK) and registered construction expertise certificates (SKA) reached 261,720 and 38,328, respectively.
Latest News
Bangka Belitung Islands Governor Hidayat Arsani received a group of investors from Singapore during ther official visit to Pangkalpinang City, Bangka Belitung Islands on July 2, 2025. In the meeting, the representatives of Singaporean investors expressed their interest in investing up to Rp40 trillion in the province.
"I welcome and give my appreciation for the desire of Singaporean investors to invest in this area," said Hidayat as quoted by Antara.
The planned investment projects will focus on developments in several strategic sectors of Bangka Belitung, with the projects encompassing large-scale chicken farms, development of tourism areas, construction of golf courses, and important infrastructure such as airports and ports.
Hidayat explained that the investment plan in the livestock sector, especially chicken farming, will be developed systematically at a large scale.
"Specifically for chicken farming, this investment will be developed at a large scale so that it can meet the needs of the people in this region," said the governor.
In addition, tourism attractions are also the main focus of investors. To support the increase in the number of tourist visits, they are interested in building modern ports and airports in Bangka Belitung. The construction is considered crucial by the regional government to strengthen regional accessibility and encourage sustainable growth of the tourism sector.
"To increase tourist visits, we need a good port and airport," Hidayat emphasized.
The provincial government sees this plan as a golden opportunity, as foreign investors' interest on Bangka Belitung Islands' potential is seen as a positive signal for local economic growth, job creation, and improving community welfare.
Hidayat also stated that his local administration is very open to foreign investment, but he emphasized that any plans will still undergo thorough review and strategic consideration to ensure that the investment truly provides long-term benefits and does not harm the environmental or social aspects.
"The desire of investors from Singapore is very good, but we will consider [thoroughly] it first," he concluded.
If this plan is realized, Bangka Belitung Islands has the potential to experience a major surge of infrastructure and real economy development. This investor visit opens a promising new chapter for the future of this island province.
