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
East Nusa Tenggara Governor Emanuel Melkiades "Melki" Laka Lena revealed on Aug. 16, 2025, ahead of Indonesian Independence Day that investments to East Nusa Tenggara Province reached Rp 2.19 trillion for the first half (H1) of 2025. The investment realization target set by the Indonesian government for East Nusa Tenggara is at Rp 4.69 trillion in 2025.
"Alhamdulillah, investments [to East Nusa Tenggara] in H1 2025 reached Rp 2.19 trillion, or 46.8 percent of the target. The figure consisted of Rp 772.6 billion in foreign investment and Rp 1.42 trillion in domestic investment," he explained.
Melki stated that investment is a crucial driver of East Nusa Tenggara's economic growth. Investment creates jobs, fosters new businesses, and ultimately reduces poverty in the province. He explained that 1,291 companies reported their investment activities through the online Investment Activity Report (LKPM). They employ 3,893 people across 8,353 projects.
"The five largest sectors driving investment are hotels and restaurants at Rp 658 billion, trade and repairs at Rp 429 billion, transportation, warehousing, and telecommunications at Rp 411 billion, construction at Rp 177 billion, as well as housing at Rp 119 billion," he explained.
To ensure public services support this growth, Melki said Public Service Malls have been launched in nine regencies and cities across East Nusa Tenggara.
"These are in Kupang City, Central South Timor, Belu, Malaka, Ngada, Sikka, West Manggarai, East Manggarai, and Lembata, so that business permits, important documents, and administrative services could be accessed quicker, easier, and more transparently," he elaborated.
The East Nusa Tenggara Provincial Government is targeting the issuance of 5,000 business permits by 2025.
"Alhamdulillah we have reached 3,434 permits or 68.68% of the annual target as of June [2025]. This exceeds the 58 percent target set for July. Of that number, 3,197 permits were issued through the front office and 234 permits through the OSS-RBA (Online Single Submission Risk Based Approach)," explained Melki.
The provincial government has also issued 2,778 standard certificates and 11,557 business identification numbers (NIB) for enterprises through OSS-RBA.
"They consisted of 11,511 micro, small, and medium enterprises (MSMEs) and 46 non-MSMEs. This is a real step towards expanding business opportunities throughout East Nusa Tenggara," Melki continued.
The governor also promised to continue promoting investment facilitation by simplifying bureaucracy in issuing permits and implementing a proactive strategy.
"East Nusa Tenggara needs to demonstrate that it is a region that can become a future investment destination in Eastern Indonesia," Melki emphasized.
