Construction Sector Contracts Down 6.05 Percent in Q2 2022

The Central Statistics Agency (BPS) reported that the construction sector contracted by 6.05 percent in the second quarter of 2022. Year-on-year (y-o-y), the construction sector grew by 1.02 percent, and cumulatively (c-to-c) by 2.95 percent.

In the first quarter of 2022, the construction sector contracted by 1.24 percent. This contraction was due to a decrease in cement procurement.

Compared to the same quarter of the previous year, the construction sector experienced growth due to increased infrastructure activity, in line with increased imports of raw materials for construction activities such as cement and glass. Furthermore, the physical realization of construction activity was also better than the previous year. This is consistent with the increase in the construction value index.

Meanwhile, the construction sector contributed 9.14 percent to the national Gross Domestic Product (GDP) in the second quarter of 2022. This figure is down from a 10.42 percent contribution in the first quarter of 2022.

(read: Infrastructure Projects Continue, Indonesian Cement Imports Surge 74% in 2021)