With Indonesia expected to become the world’s fifth largest construction market by 2025, Jakarta is fast building a reputation as a construction hub. The inaugural Big 5 Construct Indonesia event showcased the great scope for investment and development within the sector.
With ambitious development plans, construction has had a star role in the Indonesian economy, readily outpacing GDP growth in recent years. According to the Indonesian Contractors Association, the sector expanded from some $25bn in 2011 to be worth an estimated $40bn in 2013. According to the Ministry of Public Works, at the end of 2013 there were 117,052 contracting companies and 4,414 consulting companies operating in Indonesia, employing more than six million workers.
Andy White, new VP for dmg events Middle East & Asia Construction Division says: “With demand driven by a large and expanding domestic market, substantial improvements in levels of per-capita GDP and a surge in the size of the middle class, Indonesia is a market where new opportunities are emerging every day.”
Much of this growth is being fuelled by the government’s master plan for the acceleration and expansion of Indonesia’s economic development (MP3EI) and $185bn has been earmarked for infrastructure development. While many of the largest infrastructure projects are awarded to major state-owned enterprises, there is more opportunity for private sector companies in the burgeoning real estate sector. This particular opportunity has seen a further boost thanks to the government’s relaxation of the laws on foreign ownership of certain types of property, which looks set to encourage more foreign investment.
While Jakarta remains Indonesia’s hub for housing, office, retail and commercial development, White says investors are looking outside of the capital, too. The rest of Java, with its population of 140 million, is the manufacturing heartland of Indonesia providing opportunities for both industrial projects and property development.
The time was ripe, then, for a new construction-based event in Indonesia, with The Big 5 Construct Indonesia International Building & Construction Show taking place 7 – 9 May 2015. White adds: “Selecting Jakarta to stage The Big 5 Indonesia was an easy decision. Jakarta is the economic and political capital of Indonesia. With nearly 10 million living in the city, it’s one of the most populous hubs in South East Asia, attracting businesses of all kinds from around the region. Our buyer audiences typically have their head offices in the city. This means we are far more likely to get these contractors, architects, engineers, procurement managers and designers attending our event and meeting our exhibitors.
“It’s also a natural choice on many other levels, including travel connections and administratively, should our exhibitors be investigating setting up shop in Indonesia. Also, Jakarta’s venue options are good quality and well organised, which is a great help when you’re launching a major new event like The Big 5 into a new market.”
He adds: “The Indonesian government is very keen to support international exhibition organisers because it can see the potential of events to attract and encourage foreign investment. With the Big 5 Construct Indonesia dmg::events Middle East & Asia had the support of The Ministry of Public Works and Housing as well as LPJK – The National Construction Services Development Board – who endorsed the event and actively participated in our workshop and conference programmes. This level of support is unusual for the launch edition of an event in a new territory and demonstrates the willingness of the Indonesian government to get involved.”
The Big 5 Construct Indonesia returns to the Jakarta International Expo, 10 – 12 May 2016.