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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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.
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Joko “Jokowi” Widodo’s "safari politik" (campaign tour) since June marks a significant turning point in Indonesia’s post-presidential politics. Although publicly framed as a series of visits to fulfil invitations and meet citizens, the former presidents tour reflects a calculated effort to sustain influence, reorganize political alliances and shape the country’s political future toward the 2029 elections. Rather than a purely symbolic return, the "safari politik" represents a strategic repositioning in a political landscape now led by President Prabowo Subianto.
After completing his presidency in October 2024, Jokowi entered a quieter phase, though he remained highly popular among the public. By late May 2026, he announced plans to travel across Indonesia, beginning with Lampung, East Nusa Tenggara Timur and West Java provinces, after recovering from health issues.
Officially, Jokowi described the visits as responses to invitations from local communities and efforts to maintain social ties. However, the scale of the tour and its timing highlight a broader political context. Jokowi is no longer aligned with the Indonesian Democratic Party of Struggle (PDI-P), the party that supported his presidency from 2014 to 2024, and is increasingly associated with the Indonesian Solidarity Party (PSI), led by his son Kaesang Pangarep.
Jokowi’s safari serves several interconnected goals. First, it is a demonstration of continued political relevance. By visiting multiple regions and mobilizing public enthusiasm, Jokowi signals that his popularity remains strong even after leaving office. Analysts view this as a message to political elites, including Prabowo, that Jokowi still commands a significant grassroots base.
Second, the "safari politik" is widely seen as a strategy to strengthen PSI. Observers argue that Jokowi is leveraging his popularity to boost the party’s electability and potentially help it pass the parliamentary threshold. Since PSI lacks a strong nationwide structure, Jokowi’s personal appeal becomes its most valuable political asset.
Third, the tour reflects a long-term political calculation toward 2029. Analysts suggest Jokowi is maintaining bargaining power in coalition politics while positioning his political network for future competition. This includes indirectly supporting the political trajectory of his son, Vice President Gibran Rakabuming Raka.
Finally, the tour continues Jokowi’s signature blusukan-style engagement, but with a clearer electoral and organizational purpose. It is no longer just about connecting with citizens, it is also about mobilizing supporters and consolidating networks.
The safari provides Jokowi with several strategic opportunities. First, it allows him to maintain national visibility and relevance. Former presidents often lose political influence over time, but Jokowi’s continued presence helps preserve his role as a key political figure and potential kingmaker.
Second, the tour supports his effort to build PSI as a viable political force. By directly engaging with local cadres and communities, Jokowi can help transform the party from a marginal player into a more competitive organization, benefiting from the “coattail effect” of his popularity.
Third, the safari acts as a test of political loyalty. By observing the level of public participation and support, Jokowi can assess whether his influence remains strong outside formal office.
Fourth, it helps him consolidate and expand his support base geographically. By revisiting regions that supported him during past elections, Jokowi strengthens existing networks while potentially reaching new voters. Together, these gains reinforce Jokowi’s position as an influential actor in Indonesia’s political system despite no longer holding power.
For PDI-P, Jokowi’s "safari politik" has significant implications. Symbolically, it confirms the breakdown of Jokowi’s relationship with his old party PDI-P. His growing association with PSI weakens PDI-P’s ability to claim his achievements and legacy as part of its political identity. Strategically, the safari could erode PDI-P’s voter base. Many voters identify more strongly with Jokowi as an individual than with party structures. If Jokowi successfully mobilizes these supporters under PSI, PDI-P risks losing influence in key regions.
Jokowi’s safari also affects President Prabowo’s political environment. On one hand, Jokowi’s engagement may benefit political stability. His high popularity can help maintain public confidence and support for the broader political system. On the other hand, it introduces a form of parallel political influence. By maintaining his own network of supporters, Jokowi ensures that he remains a key figure whose interests cannot be ignored.
Analysts interpret "safari politik" as a signal to Prabowo that Jokowi retains significant leverage in Indonesian politics. Moreover, Jokowi’s efforts to strengthen PSI could alter future coalition dynamics. A more competitive PSI may influence alliances and reshape the balance of power as Indonesia approaches the 2029 elections.
Jokowi’s June 2026 "safari politik" is not merely a routine tour, it is a strategic effort to preserve influence, build a new political base, and shape Indonesia’s political future.
