TEMPO.CO, Jakarta – Indonesia's construction market is one of Asia's largest, with a market potential of US$267 billion. The market potential comes from the infrastructure sector as a whole, including oil and gas fields.
Putut Marhayudi, deputy director of regulation and licensing at the Public Works Ministry's Construction Development Board, said Indonesia's construction services market is the fourth in Asia after China (US$1.78 trillion), Japan (US$742 billion), and India (US$427 billion).
According to Putut, last year's construction market potential accounted for 9.99 percent of gross domestic product. The sector's capital value also increases every year, from Rp324 trillion in 2012 to Rp480 trillion in 2014.
The huge potential places Indonesia on the target map of foreign consulting services businesses. Tri Widjajanto, board chief of the National Construction Services Development Institute, said there are currently 294 foreign construction enterprises tapped into Indonesia's construction sector. Last year, there were only 137.
"Most of these companies come from South Korea and Japan, each having 80 construction enterprises in Indonesia's market," he said.
Bintang Perbowo, head of the Indonesian Contractors Association, said that by 2019 Indonesia's construction market potential in the ASEAN region will reach 79 percent, "far greater than Vietnam, the Philippines, Thailand, Malaysia, and Singapore that only have a market share of four to six percent, "he said.
ALI HIDAYAT | DINI PRAMITA