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
Gorontalo Province Investment and One-Stop Integrated Services Office (DPMPTSP) Head Sultan Kalupe stated that the most important factor in the economy is not consumption, but the multiplier effect resulting from investment activities. Therefore, Gorontalo's economic strategies and policies will be directed at increasing investment as an effort to drive long-term economic growth.
The economic and investment performance of the Gorontalo Provincial Government in the first quarter (Q1) of 2025 showed encouraging achievements. During that period, the Gorontalo economy grew by 6.07 percent year-on-year (yoy), higher than the national economic growth of 4.97 percent. This growth was mainly driven by the manufacturing, construction, and agricultural sectors.
Furthermore, the investment realization value in Gorontalo Province reached Rp1.29 trillion in Q1 2025, or 25.58 percent of the Rp5.03 trillion annual target. This achievement also had a positive impact on job creation, which reached 2,368 new jobs. The basic metal manufacturing, non-machine metal goods, and its equipment contributed the most to said achievements.
"Currently, we have several large companies that have big investment plans for carrying out their business activities in Gorontalo Province. We will continue to encourage these companies to be able to realize their investment plans so Gorontalo's economic growth target could be achieved," said Sultan.
In addition, the regional government continues to strive to maintain certainty and clarity of regulations so that business actors, both from within and outside the country, can carry out their investments in a more measured and optimal manner.
"The government will continue to be committed to deregulation to improve the investment climate and ultimately increase economic growth in Gorontalo," concluded Sultan.
