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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The armed conflict plaguing Papua has intensified sharply over the past two weeks, compounding decades of violence that have long gripped the region. This latest escalation has once again prompted widespread calls for restraint, peaceful dialogue and a nonviolent approach to resolving the protracted crisis.
To date, the ongoing hostilities have claimed thousands of lives and driven the number of internally displaced persons (IDPs) in Papua to an estimated 122,000. While the West Papua National Liberation Army (TPNPB), the armed wing of the Free Papua Movement (OPM), has been blamed for a series of recent attacks, the operations conducted by the Indonesian Military (TNI) have also come under increasing scrutiny.
According to recent monitoring, much of the latest violence has been concentrated in the Sugapa and Agisiga districts of Intan Jaya, a mountainous regency in Central Papua.
The resulting toll highlights a grim pattern that began on June 27, when a soldier was killed and three others wounded. Two days later on June 29, three separate incidents resulted in the deaths of a church worker and a pastor, while two workers building a church in Titigi village were injured in a shooting. The bloodshed continued to July 2, when three other incidents claimed the lives of a pregnant woman, a church worker and a pastor.
A common thread running through these tragedies is the critical need for thorough, impartial investigations as competing narratives frequently obscure the truth. A stark example is the death of Melkiana Duwotau, who was pregnant when a bullet pierced the wall of her honai (traditional house) and struck her in the head, killing her.
The Intan Jaya administration reported that the gunfire was believed to have originated from the direction of a nearby TNI post. The military denied this, however, and the Habema Joint Regional Defense Command (Koops Habema) alleged that the shots were fired by an armed separatist group.
Questions also surround the July 2 death of church worker Okto Tigau, whom the military had identified as a member of an armed separatist group. Local accounts, however, described him as an ordinary civilian. The Papua office of the National Commission on Human Rights (Komnas HAM) said it received reports that Tigau had been missing since June 29. Two days later, his body was discovered with multiple stab wounds. Local sources allege he had been detained by security personnel.
The July 2 violence was not confined to Intan Jaya. In an incident that drew international attention, United States national Nicholas Francis Gosselin, a pilot with PT Associated Mission Aviation (AMA), was shot dead by separatist rebels after landing in Yahukimo, Papua Highlands. The attackers subsequently set his aircraft on fire.
Unlike other recent incidents, responsibility for this attack was openly claimed: TPNPB spokesperson Sebby Sambom said Gosselin’s killing was intended to send a "message" to both Jakarta and Washington over their failure to address the root causes of the conflict between the rebel group and the TNI. Sambom also alleged that the aircraft had repeatedly transported military personnel, violating the group’s ultimatum.
The tragedy recalls the high-profile hostage incident involving New Zealand pilot Phillip Mehrtens, who was abducted by Papuan rebels in February 2023 after landing a small commercial aircraft in Papua Highlands’ remote Nduga district. After more than a year in captivity, Mehrtens was finally released in September 2024.
The latest surge in bloodshed has renewed urgent calls from religious groups, as well as the legislature and the executive branch, for concrete de-escalation efforts.
The Indonesian Communion of Churches (PGI) has urged all parties to end all forms of violence and called for the immediate pursuit of peaceful dialogue as the only sustainable path forward. In the House of Representatives, Commission XIII member Yan Permenas Mandenas has called on the TNI commander to conduct a comprehensive evaluation of security operations across the volatile mountainous regions of Papua.
Meanwhile, the executive leadership has emphasized restraint and systemic reform. Deputy Human Rights Minister Mugiyanto called on both the TNI and the National Police to exercise maximum restraint. Human Rights Minister Natalius Pigai likewise stressed that achieving lasting peace in Papua could not be the responsibility of a single institution or ministry, arguing instead that a durable solution required the commitment and participation of all stakeholders.
Ultimately, this latest wave of violence serves as a stark reminder that the Papua conflict cannot be resolved through force alone. As competing narratives continue to emerge and civilians bear the brunt of the toll, ensuring strict accountability for each incident while creating space for credible, structured dialogue remains the only viable way to break a cycle of conflict that has persisted since the 1960s.
