Indonesia Commercial Construction Market Size & Trends | Mordor Intelligence
Mordor Intelligence has published a new report on the “Indonesia Commercial Construction Market” offering a comprehensive analysis of trends, growth drivers, and future projections
Introduction:
The Indonesia Commercial Construction Market is witnessing considerable activity and expansion, driven by steady economic growth, increasing foreign investments, and an evolving business landscape. According to a 2025 report on the Indonesia Commercial Construction Market by Mordor Intelligence, the sector is expected to grow from USD 55.18 billion in 2025 to USD 81.80 billion by 2030, registering a CAGR of 8.19% during the forecast period.
The market is being shaped by a strong demand for new office spaces, logistics hubs, and industrial parks, particularly in key urban centers such as Jakarta and West Java. The government’s infrastructure drive, combined with the steady inflow of private capital, has further encouraged development across commercial construction categories. Moreover, Indonesia’s ambition to become a regional logistics and business hub is also translating into higher commercial real estate activities.
Report Overview: https://www.mordorintelligence.com/industry-reports/indonesia-commercial-construction-market?utm_source=openpr
Key Trends Driving Market Growth:
The commercial construction sector in Indonesia is experiencing a range of dynamic trends that are redefining how developers and investors approach new and ongoing projects.
Growing Demand for Grade A Office Spaces:
With multinational corporations and local businesses expanding operations in Jakarta and satellite cities, the demand for high-quality office buildings is on the rise. Modern workspaces that offer smart infrastructure, flexible layouts, and sustainability features are particularly in demand.
Expansion of Logistics and Industrial Facilities:
Indonesia’s position as a Southeast Asian trade hub is pushing the need for warehouses, cold storage units, and distribution centers. The growth of e-commerce and logistics has spurred investments in industrial construction, especially in West Java and Central Java.
Urban Redevelopment and Renovation Projects:
While new construction dominates the sector, renovation projects in urban centers are also gaining momentum. Commercial zones in Jakarta, Bandung, and Surabaya are undergoing significant refurbishment, aimed at upgrading outdated buildings and increasing property value.
Public-Private Collaboration in Infrastructure Development:
Public investment in infrastructure is encouraging private companies to develop commercial properties near transport hubs, airports, and industrial zones. Transit-oriented development (TOD) is gaining traction, aligning commercial real estate with mass transportation networks.
Green Building and Sustainable Construction Practices:
Sustainability is increasingly becoming a focus area in Indonesia’s commercial construction. Developers are incorporating energy-efficient systems, rainwater harvesting, and green certifications such as EDGE and LEED to attract environmentally conscious tenants and investors.
Digital Tools and Smart Building Integration:
The use of building information modeling (BIM), project management software, and smart building technologies is improving operational efficiency and reducing construction timelines. Digitalization in planning and execution is becoming a competitive differentiator for construction firms.
Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/indonesia-commercial-construction-market?utm_source=openpr
Market Segmentation:
The Indonesia Commercial Construction Market is segmented based on sector type, construction type, investment source, and regional distribution.
By Commercial Sector Type:
Office: Includes commercial towers, business parks, and co-working spaces in urban centers.
Industrial & Logistics: Covers the construction of warehouses, manufacturing facilities, logistics parks, and distribution centers.
Others: Encompasses retail buildings, hotels, shopping malls, data centers, and mixed-use developments.
By Construction Type:
New Construction: Represents projects that involve ground-up construction of commercial structures, often funded by private or public stakeholders.
Renovation: Involves the refurbishment or redevelopment of existing commercial buildings to enhance functionality, aesthetics, and occupancy rates.
By Investment Source:
Private: Driven by domestic developers, real estate funds, and foreign investors.
Public: Includes government-sponsored initiatives, especially in urban redevelopment, special economic zones, and infrastructure-linked commercial hubs.
By Region:
TDKI Jakarta: The core commercial hub, hosting the highest concentration of office spaces, high-rise developments, and retail projects.
West Java (Jawa Barat): A fast-growing region for industrial parks, logistics infrastructure, and residential-commercial mixed-use projects.
Other Regions: Includes Central Java, East Java, Bali, and Sulawesi, which are witnessing growing interest from developers due to infrastructure development and emerging business activity.
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Key Players in the Indonesian Market:
Several established construction firms are leading the commercial construction landscape in Indonesia. These companies are responsible for some of the largest and most complex developments across the country.
PT PP (Persero) Tbk:
A major state-owned enterprise with a diversified project portfolio, PT PP has played a pivotal role in delivering office complexes, shopping centers, and commercial zones. Their ability to execute large-scale projects in urban centers and strategic economic zones makes them a preferred partner for public and private stakeholders.
PT Wijaya Karya Tbk (WIKA):
WIKA is another prominent player known for its expertise in civil engineering, property development, and industrial construction. The company is actively involved in projects tied to infrastructure corridors and business districts.
PT Total Bangun Persada Tbk:
Specializing in high-rise office buildings, hospitality properties, and commercial centers, Total Bangun Persada is a key contributor to Jakarta’s skyline and has strong credentials in delivering premium commercial properties.
PT Nusa Raya Cipta Tbk:
Known for its strong regional presence, Nusa Raya Cipta is engaged in multiple office and retail developments outside the Jakarta region, including in emerging provinces that are attracting new business investments.
PT Adhi Karya Tbk:
Adhi Karya has been actively involved in transit-oriented and integrated commercial projects. The firm is aligning its developments with infrastructure projects such as LRT and urban transit systems, which are key to Indonesia’s future urban landscape.
Explore more insights on Indonesia Commercial Construction Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/indonesia-commercial-construction-market/companies?utm_source=openpr
Conclusion:
The Indonesia Commercial Construction Market is poised for robust growth, supported by economic expansion, increased business activity, and government initiatives. As demand for office, industrial, and mixed-use spaces continues to rise, developers are responding with new constructions and strategic renovations across major regions. Urbanization, infrastructure development, and private sector confidence are shaping a highly active construction environment, particularly in cities like Jakarta and Bandung. Companies that can align with sustainability standards, leverage digital tools, and deliver within complex regulatory and operational frameworks will be well-positioned to benefit from the opportunities in this growing market.
For complete market analysis, visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/indonesia-commercial-construction-market?utm_source=openpr
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Indonesia Commercial Construction Market: The Indonesia Commercial Construction Market Report is Segmented by Commercial Sector Type (Office, Industrial & Logistics, and Others), by Construction Type (New Construction and Renovation), by Investment Source (Private and Public), and by Region (TDKI Jakarta, West Java (Jawa Barat), and More).
Get more insights: https://www.mordorintelligence.com/industry-reports/indonesia-commercial-construction-market?utm_source=openpr
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