Construction in Indonesia: Infrastructure
1
Construction in Indonesia: Infrastructure Construction in Indonesia: Infrastructure As one of the largest and fastest growing economies in South East Asia, Indonesia has become the land of opportunity for the construction sector. The country has been widely predicted to become a global hotspot for infrastructure construction in the coming years with the development of transformative policies and initiatives. China 1 Japan 4 India 3 Indonesia 7 Brazil 8 Germany 5 U.K. 9 France 10 Russia 6 U.S. 2 Economy Boost In the next 15 years, infrastructure improvements are expected to help Indonesia become the 7th largest economy in the world. According to projected nominal GDP, the top economies in 2021 will be China, the U.S., India, Japan, Germany, Russia, Indonesia, Brazil, the U.K. and France respectively. By 2030 the country will offer a market opportunity of US$1.8 trillion and create the need for 113 million skilled workers. Infrastructure Project Plan In 2014, the BKPM, Indonesian government’s investment agency outlined the following ambitious plans to boost economic growth with a spending spree on ports, roads and railways: Roads 2,650 km Toll roads 1,000 km Commercial airports 15 Cargo airports 6 Railway 3,258 km Sea ports 24 Ferry ports 60 Dams 49 Hydroelectric power stations 33 Oil refineries 2 Electricity generation 35GW Infrastructure Budget 2009 75 150 0 225 300 375 2010 2011 2012 2013 2015 2016 2014 Source: Indonesia Investments Source: ITE In trillion rupiah 5-6% 5-6% 7% 40 90 125 Source: 2010 population census, Indonesia’s Central Bureau of Statistics; Canback Global Income Distribution Database (C-GIDD); McKinsey Global Institute analysis Other Other is defined as people with annual net incomes <$3,600; members of consuming class are those with annual net incomes >$3,600; incomes measured at 2005 purchasing-power parity. Figures are rounded to nearest 5 million; 2020, 2030 and 2040 data are projected. Indonesia’s population by income level (millions of people) Consuming class Potential GDP People entering consuming class over 2010 total 2010 2020 2030 2040 195 240 265 280 280 45 85 135 170 180 145 110 Major Projects Supported by increasing amounts of foreign investment which is creating significant opportunities for construction and engineering firms, key projects include: If you are interested in finding out more our services and the vast construction opportunities for both businesses and consultants in Indonesia, please visit www.procorre.com and register with Procorre. • Power generation – Batang Power Plant According to the International Energy Agency, Indonesia’s current installed capacity is 47.3GW, with a further 35GW planned for 2019. • Rail – High-speed Rail Link The 142 kilometre line will link the capital city Jakarta to the city of Bandung in West Java. The US$5.1bn mega project is expected to complete in 2019. • Road – Trans-Sumatra Toll Road The Trans-Sumatra toll road is one of Indonesia’s largest infrastructure projects with an estimated cost of US$25bn and will cover more than 2,800 kilometres, consisting of 24 sections that stretch across ten provinces. procorre.com working to new horizons
-
Upload
procorre -
Category
Engineering
-
view
124 -
download
2
Transcript of Construction in Indonesia: Infrastructure
Construction in Indonesia:Infrastructure
Construction in Indonesia: Infrastructure
As one of the largest and fastest growing economies in South East Asia, Indonesia has become the land of opportunity for the construction sector.
The country has been widely predicted to become a global hotspot for infrastructure construction in the coming years with the development of transformative policies and initiatives.
China
1Japan
4
India
3
Indonesia
7
Brazil
8
Germany5
U.K.
9
France
10
Russia
6
U.S.
2
Economy Boost
In the next 15 years, infrastructure improvements
are expected to help Indonesia become the
7th largest economyin the world.
According to projected nominal GDP, the top economies in 2021 will be China, the U.S., India, Japan, Germany, Russia, Indonesia, Brazil, the U.K. and France respectively.
By 2030 the country will offer a market opportunity of
US$1.8 trillion and create the need for 113 million skilled workers.
Infrastructure Project PlanIn 2014, the BKPM, Indonesian government’s investment agency outlined the following
ambitious plans to boost economic growth with a spending spree on ports, roads and railways:
Roads2,650 km
Toll roads1,000 km
Commercial airports
15
Cargo airports
6
Railway3,258 km
Sea ports24
Ferry ports60
Dams49
Hydroelectric power stations
33
Oil refineries2
Electricity generation
35GW
Infrastructure Budget
2009
75
150
0
225
300
375
2010 2011 2012 2013 2015 20162014 Source: Indonesia Investments
Source: ITE
In trillion rupiah
5-6% 5-6% 7%
40 90 125Source: 2010 population census, Indonesia’s Central
Bureau of Statistics; Canback Global Income Distribution Database (C-GIDD); McKinsey Global Institute analysis
Other
Other is defined as people with annual net incomes <$3,600;
members of consuming class are those with annual net incomes >$3,600;
incomes measured at 2005 purchasing-power parity.
Figures are rounded to nearest 5 million; 2020, 2030 and 2040 data are projected.
Indonesia’s population by income level (millions of people)
Consuming class
Potential GDP
People entering consuming class over 2010 total
2010 2020 2030 2040
195
240265
280 280
4585
135170
180
145110
Major Projects Supported by increasing amounts of foreign investment which is creating significant
opportunities for construction and engineering firms, key projects include:
If you are interested in finding out more our services and the vast construction opportunities for both businesses and consultants in Indonesia,
please visit www.procorre.com and register with Procorre.
• Power generation – Batang Power PlantAccording to the International Energy Agency,Indonesia’s current installed capacity is 47.3GW,with a further 35GW planned for 2019.
• Rail – High-speed Rail LinkThe 142 kilometre line will link the capital city Jakartato the city of Bandung in West Java. The US$5.1bnmega project is expected to complete in 2019.
• Road – Trans-Sumatra Toll RoadThe Trans-Sumatra toll road is one of Indonesia’s largest infrastructure projectswith an estimated cost of US$25bn and will cover more than 2,800 kilometres,consisting of 24 sections that stretch across ten provinces.
procorre.com
working to new horizons
