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
Bungo Regent Dedy Putra announced that Muara Bungo Airport will add a Jakarta-Bungo route served by Lion Air Group subsidiary PT Batik Air Indonesia with its Airbus A320 and Sriwijaya Air Group subsidiary PT NAM Air starting from February 2026. To support smooth and safe transportation activities, the Indonesian government is currently increasing the thickness of the airport apron, where aircrafts are parked, loaded, refueled, boarded, and/or maintained.
"The state budget [allocation] is currently being worked on by the Transportation Minister (Dudy Purwaghandi), and it will be completed in December. The Jambi Governor (Al Haris) will take part in the [inaugural] flight from Jakarta to Bungo Regency on Batik Air," Dedy stated in Jambi on Dec. 6, 2025.
He added that the apron hardening is an effort to improve the facilities needed by the Airbus aircraft. In addition to increasing the airport apron's thickness, the regency government is currently proposing to widen the runway.
"The runway is currently 2,100 meters long, but we want to widen it first. Its [width] is currently 30 meters, and we're proposing to widen it to 45 meters," he said.
The Bungo Regent projected that the airport could be used to serve Hajj pilgrims. The proposal has been conveyed to the Jambi Governor, and the provincial government has responded positively to the plan. The approval demonstrated the potential importance of Muara Bungo Airport in supporting Hajj services by saving time and money for residents of five regions in western Jambi.
"We hope that next year, Hajj pilgrims can fly directly from Bungo to Batam. Our target, and the governor has agreed, is [to serve] Bungo, Kerinci, Sungai [Penuh] City, and Tebo. The governor has discussed this with me, and if possible, we will fly directly [to Batam], eliminating the need for [residents of those regions to travel to Sultan Thaha Airport] in Jambi [City]," he explained.
