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

May 22, 2026

The Presidential Palace has partnered with the Indonesia New Media Forum (INMF) in a move it says could significantly expand its social media reach, potentially adding up to 100 million views per day.

Muhammad Qodari, head of the Government Communications Agency (Bakom), announced the initiative following a May 7 meeting with the group. He described INMF members as “homeless media,” referring to small, social media–based outlets that operate outside conventional institutional structures.

Typically run by one to five people, these outlets rely on platforms such as Instagram, TikTok and YouTube rather than traditional websites to distribute content. Despite their limited organizational scale, many have built large followings, underscoring their growing presence in Indonesia’s digital media landscape.

The partnership appears to align with Qodari’s stated approach to government communication. Upon his appointment in late April, he said the administration would promote its programs “intensively, proactively and aggressively.”

Formed in July 2025, INMF provides a collaborative platform for social media-based publishers adapting to shifts in how audiences consume news and information. The latest announcement signals official recognition of the group’s role in that evolving environment.

The initiative also comes as President Prabowo Subianto adjusts his communications strategy. In April, he reinstated political consultant Hasan Nasbi as special adviser on communication. Hasan previously worked on the presidential campaigns of Joko “Jokowi” Widodo in 2014 and 2019 and Prabowo in 2024.

Hasan had resigned as head of the presidential communication office in April 2025, reportedly due to internal differences. His return suggests continuity in shaping the administration’s public messaging.

He has said the INMF partnership does not constitute a formal working relationship between the government and its members. Rather, he described it as an effort to adapt official communication to current media consumption patterns, particularly on platforms that operate beyond traditional corporate frameworks.

More than a year and a half after Prabowo’s inauguration in October 2024, survey data show his approval rating remains above 70 percent, indicating sustained public support.

The President however continues to face criticisms, mostly online, although that digital space is also shrinking with reports of harassments against critics, mostly scholars and activists and a handful of critical media.

At the same time, the development highlights broader changes in the media ecosystem. Traditional print and broadcast outlets now share audience attention with a wide range of digital actors, including independent content creators, citizen journalists and online influencers.

Following Qodari’s remarks, several media organizations clarified their positions regarding INMF.

Narasi, founded by journalist Najwa Shihab, said it is not part of the forum and emphasized that it is registered with the Press Council and adheres to established journalistic standards.

Indozone, which targets millennial and Gen Z audiences, also stated that it remains independent and has no formal ties to the government. It added that its editorial staff have undergone professional competency certification. Qodari said the partnership would help expand the government’s public outreach. However, details regarding specific arrangements with INMF members were not elaborated, other than that participating outlets would have access to government information similar to conventional media and could receive support to improve reporting quality.

Many social media-based outlets do not have formal corporate structures, meaning they do not meet Press Council registration requirements and are not covered by protections under the 1999 Press Law. Nevertheless, many maintain verified social media accounts that signal authenticity to their audiences.

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