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

September 22, 2026

Agus Harimurti Yudhoyono's recent political messaging can be interpreted as an attempt to achieve a delicate balancing act: positioning himself and the Democratic Party as a critical voice within government without crossing the line into outright opposition. It is a strategy born from both opportunity and necessity. For Agus, the political challenge is obvious. While he remains one of Indonesia's most recognizable younger politicians, he has not consistently appeared among the top-tier contenders in most discussions about the 2029 presidential election.

The dominant attention has largely been focused on figures with stronger executive credentials, deeper political machines or higher public popularity. If Agus hopes to become a serious presidential contender, maintaining the status quo is not enough. He needs greater visibility, a more distinct political identity and a narrative that separates him from the many parties supporting the government.

This helps explain the significance of his speech. Rather than offering unconditional praise for the administration, Agus appeared to emphasize themes of accountability, governance and the need for those in power to remain responsive to public concerns. The message was notable not because it represented a complete break from the government, but because it subtly challenged the perception that coalition parties must always defend the administration's every move.

The strategy serves multiple purposes. First, it allows the Democrats to reclaim part of their traditional identity as a centrist reformist party. Since joining the governing coalition, the party has enjoyed access to government but has also risked losing its distinctiveness. In a broad coalition dominated by larger political forces, smaller parties can easily become politically invisible. By adopting a more critical tone, the Democrats can remind voters that it possesses an independent voice.

Second, it helps 48-year old Agus personally. Indonesian presidential politics tends to reward leaders who appear decisive and independent rather than excessively dependent on existing power structures. If Agus is perceived merely as another coalition politician benefiting from office, his appeal may remain limited. If he can present himself as a leader willing to speak uncomfortable truths while still acting responsibly, his profile could improve significantly ahead of 2029.

The danger for Agus is that repeated efforts to distinguish himself could eventually be interpreted by coalition partners as positioning for a future campaign at their expense. If that perception grows, the Democratic Party could find itself marginalized in decision-making, deprived of influence or ultimately pushed toward the political sidelines. Even without formal expulsion from the coalition, a party can become isolated and lose much of the practical advantage that comes from being part of government.

Yet political history suggests that such an outcome may not necessarily be disastrous. The most relevant example comes from Agus’ own father, Susilo Bambang Yudhoyono (SBY). During the administration of President Megawati Soekarnoputri, SBY served as coordinating minister for political and security affairs. As tensions emerged between him and elements within the government, he increasingly appeared marginalized. His resignation and departure from the cabinet were widely interpreted as signs of political isolation.

At the time, many viewed that isolation as a setback. Instead, it became a turning point. SBY successfully transformed himself into an alternative to the incumbent establishment. By portraying himself as a capable insider who was nevertheless willing to challenge the status quo, he appealed to voters seeking change without revolutionary disruption. In the 2004 presidential election, he defeated Megawati and became Indonesia's first directly elected president.

The parallel is not exact. The political environment of 2029 will differ significantly from that of 2004. SBY entered the race with substantial public popularity, military credentials and a national profile developed through years of government service. Agus has yet to achieve a similar level of political strength. Furthermore, Indonesia's party system today is more fragmented and coalition-based than it was two decades ago.

Nevertheless, the historical lesson remains relevant. Being pushed away from power is not always politically damaging. In some circumstances, it can become a political asset if it allows a leader to embody both experience and independence. This may ultimately be the calculation behind Agus’ approach. The ideal scenario is to gain the benefits of both worlds: remain inside the governing coalition, enjoy access to executive power and simultaneously cultivate an image as a principled critic. That would increase his visibility without sacrificing influence.

The problem is that such a balance is extremely difficult to maintain. For Agus, the coming years may therefore be defined by a central political question: can he successfully become Indonesia's most prominent "critical insider," or will his attempt to create distance from power eventually force him to choose between government influence and opposition credibility?

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