GDP from construction Indonesia 2014-2023
In 2023, preliminary figures showed the GDP of the construction sector in Indonesia was 2.07 quadrillion Indonesian rupiah. For the past few years, Indonesia’s President Joko Widodo has focused on developing infrastructures all over the nation to increase connectivity. Following the agriculture and retail sectors, the construction industry is one of the major contributors to Indonesia’s GDP.
Construction workers in Indonesia
Over eight million people were working in the construction industry in Indonesia. However, only 1.34 million of those were permanent workers as construction workers in Indonesia are usually hired as temporary or casual workers. Jakarta had the highest average wage for temporary construction workers in Indonesia, at slightly over 150 thousand Indonesian rupiah or 10.33 U.S. dollars daily. Following the increasing number of construction establishments in Indonesia, it is expected that the number of workers will also increase accordingly.
Indonesia’s construction sector has been mainly focusing on Java Island
Indonesia’s infrastructure build-up has been mainly focused on Java Island, where the current capital city, Jakarta, lies and where most of its population resides. Recently, the Indonesian government has started to shift its focus on developing its other islands. In August 2019, Indonesia's president announced that the capital city would be relocated to East Kalimantan as part of the strategy to reduce development inequality between Java and the other islands. It is thus expected that the gap between the value of total construction completed between Indonesian provinces would become smaller.
