The Insurance Industry in Indonesia

by Sameer Joshi or 01-Jun-2018

Indonesian construction industry is expected to continue to grow over the forecast period (2018-2022). Government investments in transport infrastructure, energy and utilities construction and residential buildings will contribute to this growth. Moreover, the National Development Program 2025 and National Affordable Housing Program will also support industry growth.

expects, the infrastructure construction market to retain its leading position over the forecast period, with a share of 36.0% of the industry’s total value in 2022, driven by investments in transport infrastructure projects. In the 2018 budget, the government increased its investment on infrastructure development by 4.4%, increasing from IDR387.7 trillion (US$29.0 billion) in 2017 to IDR404.0 trillion (US$29.9 billion) in 2018. Through this, the government plans to build 856.0km of new road, 781.0km of irrigation channels, 8,761.0km of new bridges and 639.0km of new railway lines across the country.

The total construction project pipeline in Indonesia, as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million, stands at IDR8.5 quadrillion (US$634.4 billion). The pipeline, which includes all projects from pre-planning to execution, has a relatively healthy balance, with 47.7% of the pipeline value being in projects in the pre-planning and planning stages as of May 2018.