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

January 29, 2026

The government is currently drafting the Bill on Prevention of Disinformation and Foreign Propaganda as part of President Prabowo Subianto ’s efforts to contain potential threats to national political stability. However, the initiative risks undermining citizens’ right to access information, as such regulations are prone to elastic interpretations and potential abuse by law enforcement agencies.

Coordinating Law, Human Rights, Immigration and Correctional Services Minister Yusril Ihza Mahendra pointed to a significant amount of misinformation and inaccurate reporting by foreign entities regarding national development and interests, and that this information was frequently exploited as propaganda to discredit the country.

According to Yusril, the proposed regulation will not be limited to political issues but also address economic competition. He has said the bill is intended to protect the public sphere and national interests, particularly from information manipulation, cross-border influence operations and foreign propaganda that could potentially harm domestic products.

At its core, the primary driver behind the bill is Prabowo’s concerns over movements perceived as disrupting political stability, and the President himself ordered his administration to begin drafting legislation aimed at countering disinformation and foreign propaganda deemed detrimental to national interests.

This move follows Prabowo’s stance following the nationwide wave of large-scale demonstrations between late August and September 2025, particularly the violence that unfolded, which he characterized as indicative of treason and terrorism.

The draft disinformation bill currently falls under Law Minister Supratman Andi Agtas.

Conversely, the Indonesian Legal Aid Foundation (YLBHI) argues that the proposed bill could become an instrument to silence criticism and pose a serious threat to democracy, justice and civil rights. The YLBHI has noted a pattern among state officials who frequently dismiss public criticism as serving foreign interests, including the President, whom the foundation alleges has repeatedly characterized critical voices as vehicles for foreign propaganda.

Moreover, excessive regulation of information risks further undermining freedom of expression and the right to access information, both of which are guaranteed under the 1945 Constitution, Law No. 40/1999 on the press and other legal frameworks.

Enforcement of information-related regulations in Indonesia has been historically fraught with complexity. One precedent is the case of Baiq Nuril, who was sentenced to six months in prison and a fine of Rp 500 million (US$29,500) under the Electronic Information and Transactions (ITE) Law for recording a conversation with her school principal as evidence of sexual harassment.

Though Baiq’s case was ultimately resolved through a presidential amnesty, hers was just one of hundreds of cases that stemmed from confusion within law enforcement. This subsequently compelled the government and the House of Representatives to revise the ITE Law in 2024.

Most recently, Laras Faizati Khairunnisa, a communications officer at an organization affiliated with the ASEAN Secretariat, stood trial for using social media to express her anger with the way the police handled the mass protests last August. Last week the South Jakarta District Court convicted her of incitement and sentenced her to one year of probation.

Rights groups warn that if enacted, the proposed disinformation bill could consolidate power in the president as the ultimate arbiter of whether convicted individuals serve their sentences, given the constitutional power of executive clemency.

According to Wahyudi Djafar, a digital governance expert, the academic draft of the disinformation bill was submitted abruptly, missing the September 2025 deadline for inclusion in the 2025-2029 National Legislation Program (Prolegnas). Nevertheless, lawmakers can still revise the Prolegnas under provisions that allow for the deliberation of additional legislation, particularly for the 2026 legislative year.

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