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.
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The progress in the corruption case involving crude oil procurement at state oil and gas company Pertamina for the 2018–2023 period deserves appreciation. Yet this development may represent only the tip of the iceberg in Indonesia’s law enforcement efforts. The sentences handed down to the suspects are considered mild and lack deterrence effect, while the main actor behind the scheme remains elusive amid the recurring scandals surrounding Pertamina.
Investigators with the Attorney General’s Office (AGO) began probing the case in October 2024. After questioning 96 witnesses and two experts, and seizing 969 documents and 45 pieces of electronic evidence, prosecutors named nine suspects in February 2025.
Six suspects were drawn from the high-level ranks of Pertamina’s subsidiaries. These were PT Pertamina Patra Niaga president director Riva Siahaan, vice president of trading and other business Maya Kusmaya and VP of trading product Edward Corne; PT Kilang Pertamina Internasional VP of feedstock management Agus Purwono and VP of product optimization Sani Dinar Saifuddin; and PT Pertamina International Shipping president director Yoki Firnandi.
Also standing trial were suspects representing the private sector: Muhammad Kerry Adrianto Riza, the beneficial owner of PT Navigator Khatulistiwa; Dimas Werhaspati, a commissioner of PT Navigator Khatulistiwa and PT Jenggala Maritim; and Gading Ramadhan Joedo, a commissioner of PT Jenggala Maritim and president director of PT Orbit Terminal Merak.
According to the AGO, the alleged corruption caused Rp 25.4 trillion (US$1.5 billion) in direct state losses. Furthermore, it triggered an estimated Rp 171.9 trillion in broader economic damage stemming from inflated fuel prices, which placed a massive burden on the national economy and public purchasing power.
After more than a year of legal proceedings, the Jakarta Corruption Court handed down verdicts against the nine defendants on Feb. 26. However, all sentences were lighter than the penalties sought by the state prosecutors. For instance, Kerry was sentenced to 15 years in prison and ordered to pay a Rp 1 billion fine plus Rp 2.9 trillion in restitution. This fell short of the 18-year sentence and Rp 10.4 trillion in restitution sought by prosecutors.
On March 2, the AGO announced it would appeal the verdicts. Prosecutors argue that the court failed to adequately consider the staggering broader economic losses and the limited restitution obligations imposed on the defendants.
Beyond the lenient sentencing, the puzzle remains incomplete because the alleged mastermind behind the scheme is still at large: oil trader Mohammad Riza Chalid, who is Kerry’s father.
Investigators allege that as early as 2012, Riza pressured Pertamina to lease the Merak fuel terminal, operated by Orbit Terminal Merak, in Banten, without a competitive tender process. This lobbying reportedly spanned from 2012 to 2014.
Riza was officially named a suspect on July 10, 2025, and placed on the AGO’s wanted list a month later. Following international coordination, Interpol issued a Red Notice for him on Jan. 23. His current whereabouts are believed to be in Malaysia.
Riza is no ordinary figure in the country’s oil and gas landscape. Known for years as the "gasoline godfather", he was widely believed to wield immense influence over Pertamina Energy Trading Ltd (Petral), the company’s former trading arm. With a long history of connections to political elites, he was previously linked to the 2015 “papa minta saham” scandal that shook the foundations of Indonesian politics, evident in the arrest of then-House of Representatives speaker Setya Novanto.
Bringing Riza to justice is crucial to uncovering the modus operandi behind his alleged intervention in Pertamina’s governance. More broadly, prosecuting figures who operate behind the scenes remains the ultimate challenge for Indonesian law enforcement.
This is not an isolated case. Pertamina has been infested with corruption since the oil boom of the 1970s, when it served as both regulator and player in a lucrative industry. While several former president directors have been sentenced for graft, cases like that of Karen Agustiawan remain controversial for blurring the line between criminal corruption and legitimate business decisions.
Law enforcers continue to pursue multiple fronts, including the investigation into liquefied natural gas (LNG) procurement (2013–2020), which caused an estimated Rp 2.1 trillion in losses, and the mismanagement of pension funds at Pertamina, totaling roughly Rp 1.4 trillion.
The recent verdict is a milestone, but it also underscores a systemic problem. Without stronger accountability, total transparency and the political will to pursue the power players behind the curtain, corruption risks remaining a recurring feature of Indonesia’s energy sector.
