Expanding your Business in Southeast Asia’s Largest Market

The 3 days main industry event (in conjuntion with 4th IBME - Indonesia Building Mechanical & Electrical Expo, integrating 3rd Indonesia Smart Building Smart City Expo Week, 2nd Indosolar+PV Tech Expo, 4th Indonesia HVACR+Energy Efficiency Expo, Hybrid & Electric Technology Expo, 4th Smart Security, Fire & Rescue Expo

INDONESIA your key to sales success Construction Firms Find Strong Growth in Indonesia

“Indonesia's emerging economy is in dire need of better infrastructure, while rising personal income is driving demand for residential and commercial property. These factors put the country squarely on the radar of the global construction industry. Indonesia's construction industry, already worth 10% of the country’s massive GDP, will grow into one of the largest in the world in the coming decade. For suppliers, investors and exporters in every single sector of the building and interiors industries, the South-East Asian archipelago economy offers unequalled opportunities for short and long-term returns.
With a huge population nearly to 260 million, high infrastructure spending and rapid urbanization, Indonesia is developing at an unprecedented rate. High promising econimic growth, and increasing demand for new and retrofit building offices and comercial buildings, the demand for lift & escalator products and tecnology is continue to growing.

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"It is expected that the number of skyscrapers in Jakarta to double by 2018 as developers tap into the booming demand for property. And within the next 5 - 10 years, Jakarta will be among the top of 20 ASIA City."

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Ambitious deadlines and increased green building standards make efficient building management central in Indonesia. Growing population, rapid urbanization, and increased disposable income are credited by the report as propelling a rise in construction market value from USD102,64in 2017 to USD 136,26bn by 2021, thereby exhibiting a CAGR of 7,34%, in value terms, during 2017-2021. As well as presenting a variety of upcoming projects that will take advantage of increased market performance, the report highlights key building technologies and standards that are developing within the boom.

Listed projects include the national toll road project, national railway projects, and ventures in the energy and waste management sectors. Benefiting from the excelling market, these construction projects come hand in hand with tight deadlines; one of which is the five-year plan to construct 1 million houses across the country.
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.

In January 2018, the government announced a plan to spend IDR105.4 trillion (US$7.6 billion) to build 17 toll road projects Under the National Strategic Project by the end of 2019. Moreover, under the third phase (2015-2019) of the National Development Program 2025, the government plans to invest IDR4.8 quadrillion (US$360.6 billion) on the development of transport and other infrastructure by the end of 2019. The government is also intending to introduce a Limited Concession Scheme (LCS) for private partners to finance large infrastructure construction projects.
In March 2018, the Ministry of Energy and Mineral Resources approved Rencana Umum Penyediaan Tenaga Listrik (RUPTL) 2018-2027, a ten-year electricity supply business plan. According to RUPTL, electricity demand in the country is projected to increase by 8.6% annually, going from 216.8TWh in 2016 to 457.0TWh in 2025. PT Perusahaan Listrik Negara (PLN), the state-owned power company, estimates that IDR2.0 quadrillion (US$153.7 billion) in capital investment will be required to develop the country's electricity system by 2027.

Timetric expects the residential construction market output to record a forecast-period CAGR of 8.41% in nominal terms, driven by the government's plans to build affordable houses for low- and middle-income households. The government plans to build one million social houses with an investment of IDR66.8 trillion (US$5.0 billion) by 2019. In addition, the government is providing subsidies to low- and middle-income people to buy houses. In 2017, the government announced plans to provide IRD14.6 trillion (US$1.1 trillion) of subsidies to low income families.
Under the National Energy Policy, the government aims to increase the share of renewable energy in the total energy mix from 12.6% in 2017 to 23% in 2025, 25% by 2030 and 31.0% by 2050. Accordingly, the government plans to increase the country's geothermal power generation capacity from 1.8GW in 2017 to 5.0GW by 2025. Moreover, the government plans to build 16 wind power plants by 2024.
Indonesia's construction market this year is projected to reach Rp 451 trillion, up 3% compared to last year. This amount exceeds other neighboring countries such as Malaysia which only has potential worth US $ 32 billion and Singapore worth US $ 24 billion. Based on BPS and the Ministry of PUPR database, the construction market figure has increased by 3% compared to 2017. The total construction project market in 2018 is predicted to be Rp. 451 trillion, 65% is civil works and 35% is building or building work.
The elevator market in Southeast Asia is at the growth stage. Of the four countries covered in the study, Thailand led the elevator demand in Southeast Asia by revenue and market share. This is followed by Indonesia, Vietnam, and the Philippines.
Suppliers of building materials are in a prime position to capitalise on Indonesia’s booming real estate market and rising investment in infrastructure. The construction sector has outpaced Indonesian GDP growth in recent years and plays an increasingly important role in the country‘s economy.
Hitachi Ltd. dan Hitachi Building Systems Co. Ltd. mengumumkan peluncuran eskalator seri TX terbaru untuk pasar India, Asia, dan Timur Tengah.   Read More
For the Asian market the business growth for the elevator industry is good, and Indonesia is growing annually, in the range of 20%, "said Hendrikus Hendra Gozali, President Director, PT Berca Schinder Lifts, shortly after launching Schindler 5500.
The global market demand for elevators and escalators is estimated to 850,000 units a year. Asia-Pacific accounts for the largest share of the elevators and escalators market with approximately three-quarters of the global demand.   Read More
Frost and Sullivan analysis reported that Indonesia in 2011 has USD 11.45 Billion revenue in this business followed by Thailand with USD 8.85 Billion and Singapore has market size USD 8.41. The elevator industry is growing rapidly due to increasing urbanization and the subsequent.

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