Indonesia’s construction sector is undergoing a high-tech transformation—fuelled by government policy, digital tools, and a strong commitment to sustainability. Prof. Ir. Dr. Resdiansyah, in his ICW Borneo 2025 presentation, highlighted the sector’s role as a primary driver of national economic growth, with annual increases of up to 9%.
At the core of this momentum is the integration of cutting-edge construction technologies. Building Information Modelling (BIM), augmented reality, IoT-based systems, and construction robotics are innovations that improve efficiency, safety, and coordination on job sites across the country. Prefabrication methods – like the Ministry of Public Works’ lightweight, modular “Mobox” system – revolutionise the delivery of remote and rural infrastructure.
What makes Indonesia’s approach especially compelling is how seamlessly digitalisation aligns with environmental goals. The construction roadmap includes a 30% carbon emissions reduction target by 2030, and the move toward green infrastructure is seen not as a trend but a necessity.
These shifts are not limited to the private sector. Government-led projects—particularly in transportation, renewable energy, and urban housing—are being implemented with strong environmental, social and governance (ESG) frameworks in place.
The growing digital economy also demands robust telecommunications infrastructure, another area drawing construction and investment activity.
Indonesia has earmarked more than USD 28 billion for infrastructure in 2024, its highest allocation in years. This record spending reflects more than just ambition—it signals a long-term, structural shift toward a digitally enabled, sustainable economy.
As Prof. Resdiansyah concluded, the sector is primed not just for growth, but for transformation. For construction professionals, technology providers, and sustainability-minded investors, Indonesia presents one of the most exciting frontiers in the region today.
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PART 1: Indonesia’s Infrastructure Boom – A Nation on the Rise
