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

November 4, 2026

As toxic haze from seasonal forest and peatland fires blanketed swaths of Sumatra, Kalimantan and Papua, a second crisis unfolded online: Content creators, civil society organizations, environmental activists and regional officials reported a sudden wave of digital suppression.

Eyewitness footage of burning peatlands was flagged as sensitive, awareness campaigns were down-ranked and high-visibility posts were abruptly removed, among them a viral video by Siak Regent Afni Zulkifli documenting postfire reforestation efforts. When netizens accused the government of state-sponsored censorship, Communications and Digital Minister Meutya Hafid issued a firm denial. The ministry had not submitted any takedown orders for forest fire content to social media platforms, she said, stressing that real-time public reporting was vital for emergency response.

That raised an obvious question: If the state was not behind the suppression, who was responsible?

The answer points to major platforms such as Meta, TikTok and X, whose silence obscures a broader legal and structural shift. Under a 2020 ministerial regulation and subsequent compliance directives, the government has effectively outsourced moderation to private companies. Platforms can be penalized for failing to police “prohibited content” and content deemed to cause “public unrest”, which has pushed them to act preemptively as censors through opaque algorithmic suppression and protect themselves from potential sanctions.

Netizens and public figures noticed that posts raising awareness about haze and forest destruction immediately suffered severe drops in reach. Activist accounts were suspended and videos documenting environmental rehabilitation were removed under vague terms of service provisions.

Despite the public outcry, the platforms stayed silent. They offered no explanations to affected creators, nor did they say whether automated filters had misclassified disaster reporting. That silence may serve a corporate strategy: By presenting mass content removal as routine terms of service enforcement, platforms limit their exposure to local liabilities and avoid friction with host governments.

Under the 2020 regulation, foreign and domestic private electronic system operators (PSE) face strict compliance rules. Standard takedown requests must be actioned within 24 hours, while content deemed a threat to public safety, public order or national security must be taken down within just four. The definition for “prohibited content” is broad and ambiguous, covering material deemed to cause “public anxiety” or disturb “public order”. Noncompliance can bring heavy fines, operational sanctions and a nationwide block.

These penalties reshape platforms’ risk calculations. With so much at stake commercially, a wait and see approach is too costly, so platforms have a strong incentive to calibrate their automated systems toward over-removal.

Meutya’s statement that the ministry had not requested any takedowns may well be true, but it misses how modern digital governance works. The state no longer needs to issue a notice for every sensitive post. Through regulatory design, it has created structural incentives that encourage platforms to demote or remove viral posts depicting environmental crises, toxic haze and public panic before they attract official scrutiny.

The collateral damage is significant. Language models and computer vision often struggle with local context. When millions of users simultaneously post footage of orange skies and dense smoke, algorithms can misread it as graphic violence, distressing content or coordinated spam and trigger automatic down-ranking or removal. By shifting the burden of proactive moderation onto private companies, the state retains plausible deniability. It can publicly champion open information while platform algorithms quietly contain crisis reporting.

The incident exposes a dangerous vulnerability in public discourse. In a disaster, social media is vital infrastructure for public safety, resource coordination and community accountability. When regulation compels platforms to act as private police under the threat of bans, free expression and public awareness quietly erode. Resolving this requires moving beyond simply framing the issue as state versus user and toward systemic platform accountability.

Until technology companies are required to disclose their moderation rules, audit their crisis response algorithms and resist overreaching compliance demands, the public will remain caught between state regulatory pressure and silent corporate censorship.

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