Indonesia's Construction Sector Growth Slowed in 2022

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Adi Ahdiat 21/12/2023 15:36 WIB

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Indonesia's construction sector's Gross Domestic Product (GDP) at current prices reached Rp1.9 quadrillion in 2022. However, measured at constant prices, its growth was only 2.01%, slower than in 2021

Indonesia's Construction Sector GDP Value and Growth (2012-2022)

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Indonesia's Construction Sector GDP Value and Growth (2012-2022)

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Indonesia's construction sector achieved a nominal Gross Domestic Product (GDP) of Rp1.9 quadrillion in 2022.

This represents 9.8% of the total GDP, making the construction sector the fifth largest contributor to the national economy.

However, based on constant price GDP, the construction sector grew by only 2.01% in 2022.

This figure shows significant improvement compared to the beginning of the 2020 pandemic but slowed down compared to 2021.

The growth rate was also not as high as the pre-pandemic period of 2012-2019, as shown in the graph.

According to Bank Indonesia's (BI) *2022 Indonesian Economic Report*, the construction sector's slowdown in 2022 was influenced by rising energy prices.

In 2023, the construction sector is projected to strengthen, supported in part by the construction of the Nusantara Capital City (IKN) in East Kalimantan.

"Certainly, IKN will help building construction and also increase demand in the construction sector," said Coordinating Minister for Economic Affairs Airlangga Hartarto, as reported by Antara on Wednesday (1/11/2023).

"In a difficult economic situation, the most important thing is to build domestic infrastructure," he added.

Airlangga also stated that the construction of IKN and various National Strategic Projects (PSN) are expected to create jobs and boost the economy.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."