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The construction sector in Indonesia has been experiencing remarkable growth in recent years, and this trend is expected to continue. This growth is largely driven by the government's infrastructure development initiatives, which have led to a substantial increase in investment in the construction industry. In 2021, the Indonesian construction industry recorded an impressive annual growth rate of 4.83%, according to data from the Indonesian Statistics Agency (BPS).

The government's commitment to infrastructure development is evident from the significant increase in infrastructure investment. In 2018, the investment in infrastructure rose to IDR 157.8 trillion (approximately US$11.3 billion), up from IDR 216.8 trillion in the previous year. This substantial investment contributed significantly to the country's economic growth, accounting for 1.28% of the overall economic growth in 2018, with an added value of IDR 184.4 trillion. This marked an increase from the 1.06% contribution in 2017, with an added value of IDR 146.9 trillion.

These investments have been directed towards various infrastructure projects, including the construction of dams, new public roads, bridges, and toll roads. These developments have not only improved the country's infrastructure but have also enhanced its competitiveness on the global stage.

Indonesia's rankings in global competitiveness indices have seen positive changes. In the World Economic Forum's Global Competitiveness Index, Indonesia's rank in the Quality of Roads category improved from 72 in 2014 to 60 in 2019, out of 141 countries. Similarly, in the World Bank's Logistic Performance Index, Indonesia climbed from 53 in 2014 to 46 out of 161 countries in its 2018 report.

While the COVID-19 pandemic had a significant impact on the construction industry in 2020, the sector has since rebounded and is poised for continuous growth. Various consultancy firms project annual growth rates ranging from 5% to 7% in real terms. This growth is attributed to the government's effective COVID-19 mitigation measures and the ongoing infrastructure projects.

One of the major upcoming projects is the relocation of Indonesia's capital city from Jakarta to East Kalimantan, estimated to cost $33 billion and take a decade to complete. To fund this ambitious project and others, the Indonesian government launched the Indonesia Investment Authority (INA), a Sovereign Wealth Fund. The government plans to inject over $5 billion into INA, with several countries expressing interest in investing through it, including the US, Japan, and Canada.