Construction Cost Index Across Indonesian Provinces 2024

The Central Statistics Agency (BPS) reports that Papua Pegunungan Province has the highest national Construction Cost Index (IKK) score, reaching 249.12 points in 2024.

"The higher the IKK in a region, the higher the cost of erecting a building in that region," BPS wrote in its report.

BPS calculates the IKK using three types of weighting data. First, data on the realization of the Regional Revenue and Expenditure Budget (APBD) for the Formation of Building Capital Goods, used to calculate the project's purchasing power parity (PPP).

Second, data from the Bill of Quantity (BoQ) of completed projects. This weighting is used to calculate the PPP of Building Types and the PPP of Systems.

Finally, data from the Unit Price Analysis Book of the Ministry of Public Works and Public Housing (PUPR) based on the Minister of PUPR Regulation No. 1 of 2022, used to calculate the component value of material prices and construction labor costs.

"The 2024 IKK uses data on construction commodity prices, heavy equipment rental, and construction labor costs collected in four enumeration periods: July 2023, October 2023, January 2024, and April 2024," BPS wrote.

This collected data is then compared to the chosen 2024 IKK reference city, Banjarmasin. This area was chosen because its index is close to the national average, considering the completeness of the data sources.

Using this method, Papua Pegunungan's IKK figure of 249.12 points indicates that construction costs in the region are 149.12% more expensive than in Banjarmasin.

Meanwhile, Lampung has the lowest IKK figure, at only 89.12 points in 2024. This means that construction costs in Lampung are 10.88% cheaper than in the reference city.

The following is a list of the 10 provinces with the highest national IKK figures in 2024:

1. Papua Pegunungan: 249.12 points
2. Central Papua: 209.28 points
3. South Papua: 142.98 points
4. Papua: 134.96 points
5. West Papua: 124.71 points
6. Southwest Papua: 122.21 points
7. East Kalimantan: 118.3 points
8. Jakarta: 114.79 points
9. North Maluku: 114.09 points
10. Riau Islands: 111.94 points

Meanwhile, the following are the 10 provinces with the lowest national IKK figures in 2024:

1. Lampung: 89.12 points
2. South Sumatra: 90.62 points
3. West Sulawesi: 91.63 points
4. Central Sulawesi: 91.82 points
5. East Nusa Tenggara (NTT): 92.42 points
6. West Sumatra: 93.06 points
7. Banten: 94.18 points
8. Bengkulu: 94.2 points
9. Southeast Sulawesi: 94.71 points
10. Jambi: 95.32 points.