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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Imagine a corrupt official who has stolen billions of rupiah from state coffers. Under a proposal floated by President Prabowo Subianto , that official could walk free, no conviction, no prison, simply by handing the money back. It sounds like restitution; critics say it looks a lot like a pardon with a price tag. The proposal, outlined in Prabowo's Aug. 14 State of the Nation Address, would offer amnesty to corruptors who return stolen state funds. It has reignited a debate that cuts to the heart of his presidency: Is Indonesia's war on corruption for real, or is it starting to look negotiable?
The plan was framed as pragmatic: recover the money first, worry about punishment later. But it raises an uncomfortable question. If corrupt officials can buy their way out of consequences by returning even part of what they stole, what does that say about the government's actual commitment to accountability?
The stakes are high precisely because Prabowo built his political brand on the opposite promise. He came to office vowing an uncompromising fight against graft, calling corruption one of Indonesia's greatest obstacles to prosperity and warning state officials to clean up their act or face consequences. But rhetoric and policy are not always the same thing.
Forgiving corruptors in exchange for asset restitution marks a real departure from a long-standing principle: that corruption is a punishable crime, regardless of whether the money is eventually returned. Indonesia Corruption Watch (ICW) has pointed out that the Corruption Law explicitly says returning state losses does not erase criminal liability.
Critics warn the proposal risks sending a dangerous signal: that corruption could become a crime that perpetrators can simply pay their way out of rather than one with unavoidable legal consequences.
Defenders counter that recovering stolen assets should be the priority. Returning trillions of rupiah to state coffers, they argue, may benefit the public more than locking up offenders. But that argument invites its own follow-up question: If asset recovery really is the priority, why has the government shown so little urgency in advancing the long-stalled asset forfeiture bill (RUU Perampasan Aset), a reform that many anticorruption experts consider one of the most important tools Indonesia could adopt?
Enacting that bill would strengthen the state's power to seize illicitly acquired wealth.
For years, activists have argued that corrupt actors should lose not just their freedom but the financial fruits of their crimes. Yet the legislation remains stuck. While the delay can't be pinned on the President alone, critics note that a leader's true priorities tend to show up in what they spend political capital on, and the absence of a genuine push for this bill undermines the claim that asset recovery sits at the center of Prabowo’s anticorruption strategy.
Doubts about the President 's commitment extend beyond this one proposal. His administration has supported or approved clemency and amnesty measures for those convicted in high-profile corruption cases. ICW and Transparency International Indonesia have both warned that such interventions risk weakening the principle of equal treatment under the law and could create the impression that political considerations are shaping judicial outcomes.
Just as telling is the limited attention paid to strengthening anticorruption institutions. Since the 2019 revision of the KPK Law, many experts argue the country's premier antigraft agency has been weakened significantly. A president genuinely committed to structural reform might be expected to prioritize restoring the KPK's independence and authority. So far, though, there's little sign that's happening. Observers increasingly note that the government talks often about corruption but shows far less enthusiasm for rebuilding the institutions needed to fight it systematically.
To be fair, anticorruption law enforcement hasn't disappeared under Prabowo. Major investigations have continued, including high-profile cases involving senior executives at state-owned enterprises, such as Pertamina. Supporters cite these cases as proof the government is serious and willing to pursue powerful figures. But anticorruption success can't be measured by case count alone. Individual prosecutions matter, but lasting progress depends on strong institutions, robust laws and credible deterrents. And on that front, the concerns keep piling up.
Taken together, the proposed amnesty for restitution, the stalled asset forfeiture bill, the use of clemency in corruption cases and the lack of momentum on KPK reform form a pattern that's hard to dismiss as coincidence. No single one of these developments proves Prabowo has abandoned the fight against corruption. But together, they raise a legitimate question: Is his administration pursuing deep structural reform or merely practicing selective enforcement?
The issue isn't whether the President opposes corruption; his public statements leave little doubt that he does. The more consequential question is whether he's willing to pursue the institutional and legal reforms needed to eradicate it, even when doing so threatens powerful interests. Until there's stronger evidence of that, doubts about the depth of his commitment aren't going away.
