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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Barring any last-minute political twists, President Prabowo Subianto 's administration appears poised to crown Indonesia's second president and Prabowo's former father-in-law Soeharto as a national hero. The move would mark a dramatic turn in the country's reckoning with its authoritarian past, as no previous president had dared to officially honor the man whose 32-year rule was synonymous with repression, corruption, and nepotism.
Soeharto's name tops a list of 40 figures nominated by the Social Affairs Ministry, alongside his political rivals, the fourth president Abdurrahman "Gus Dur" Wahid and former Jakarta governor Ali Sadikin, as well as slain labor activist Marsinah, who was murdered during Soeharto's rule. The final decision rests with Culture Minister Fadli Zon, Prabowo's close ally and head of the Council for Titles, Medals and Honors. Fadli has said all nominees meet the criteria for hero status and promised to announce the selections before National Heroes Day on November 10.
The inclusion of Soeharto's name has triggered sharp backlash from civil society groups, human rights activists, and survivors of state violence. Protesters have gathered outside the Social Affairs Ministry, while online campaigns highlight the regime's atrocities. Under Soeharto's New Order, the military orchestrated some of the country's darkest chapters, including mass killings, disappearances, and extrajudicial executions, under the banner of stability and development.
The bloodshed began soon after Soeharto seized power in 1965, when the army blamed the Indonesian Communist Party (PKI) for an alleged coup attempt. In the ensuing purge, hundreds of thousands, possibly millions, of Indonesians were killed by the military and allied paramilitary groups, many for nothing more than being accused of leftist sympathies or Chinese descent. Historians estimate the death toll at anywhere from several hundred thousand to 3 million.
Two decades later, bodies again turned up in cities across Java and other regions in what became known as Petrus, short for "mysterious shootings". The regime at first blamed gang wars but later admitted to orchestrating the killings as a "shock therapy" to deter crime, another example of how Soeharto wielded fear as a political tool.
Rehabilitating Soeharto's image as a national hero risks normalizing those abuses and rewriting history. It would signal official forgiveness, not only for the massacres and political repression, but also for the culture of collusion and corruption that flourished under his rule.
Soeharto's regime blurred the line between state and personal enrichment. He granted monopolies, licenses and contracts to allies and cronies, most notably Liem Sioe Liong, founder of the Salim Group, in exchange for loyalty and financial backing. According to Liem Sioe Liong's Salim Group: The Business Pillar of Suharto's Indonesia by Richard Borsuk and Nancy Chng, their relationship epitomized the fusion of power and money that sustained the New Order.
The Cendana family, named after the street of Soeharto's Central Jakarta residence, became a symbol of elite privilege and impunity. Transparency International later named Soeharto the most corrupt leader in modern history, estimating he siphoned between US$15 billion and US$35 billion during his three decades in office.
Among his children, youngest son Hutomo "Tommy" Mandala Putra, known for his flamboyant lifestyle, became the embodiment of New Order excess. His Humpuss Group expanded rapidly thanks to government patronage, and he secured lucrative monopolies such as the clove trade. His PT Timor Putra Nasional, appointed to lead the "national car" project in 1996, received vast sums in public and private funds, much of which went to importing foreign cars and rebranding them as domestic products.
If Soeharto is officially elevated to the status of national hero, the decision could also serve as a symbolic rehabilitation of the Cendana clan. The family largely retreated from public life after Soeharto's 1998 downfall but has gradually reemerged. The most politically active member today is Siti Hediati Hariyadi, better known as Titiek Soeharto, Prabowo's ex-wife and a Gerindra Party lawmaker who now chairs the House Commission overseeing agriculture, environment, forestry, and maritime affairs.
For critics, honoring Soeharto would be less about recognizing historical contributions than about political convenience, cementing Prabowo's ties to the New Order legacy and appealing to voters nostalgic for perceived past stability. But for those who endured his rule, it would represent a painful erasure of memory and justice.
When National Heroes Day arrives in less than two weeks, and if Soeharto is named national hero, it will not only elevate one man, it will also restore the prestige of a family and an era defined by authoritarianism. The "smiling general" may once again be etched into Indonesia's official narrative, not as a warning from history, but as a model of power.
