Home > Information > News

Indonesia's Building Materials Market: Unlimited Opportunities!

Asia Building Materials Expo 2025-08-28 11:49:47

Indonesian Building Materials Market:

Unlimited opportunities, win-win cooperation

As the global economic landscape continues to evolve, Southeast Asia is emerging as a new highlight of world economic growth with its vigorous development momentum. Indonesia, as an economic giant in Southeast Asia, has demonstrated remarkable market potential in the field of building materials, attracting the attention of global investors and building material enterprises. For companies seeking to expand into overseas markets, Indonesia is undoubtedly a blue ocean full of opportunities.

1. Indonesian Building Materials Market: Large Scale and Promising Prospects

Indonesia, with a population of 280 million, is the largest economy in ASEAN and the fourth largest consumer market in the world. In recent years, Indonesia's economy has continued to grow steadily, maintaining a growth rate of about 5%, which has injected strong momentum into the development of the construction industry.

The data shows that the Indonesian construction market size is expected to be $284.17 billion by 2024 and reach $407.87 billion by 2029, with a compound annual growth rate (CAGR) of 7.5% during the forecast period (2024 - 2029). Such a large market size and stable growth expectations mean that there is a continuous demand in the Indonesian building materials market.

(1) There is a strong demand for infrastructure development.

The Indonesian government is vigorously advancing a series of large-scale infrastructure construction projects, among which the development of the new capital city, Nusantara, stands out as a major highlight. The construction of the new capital is being carried out in five phases (2022–2045), with the current second phase focusing on residential complexes for civil servants, a light rail network, and the metal façade of Garuda Palace. The first phase alone requires 500,000 to 700,000 tons of steel, while the overall plan calls for as much as 9.5 million tons of steel. In terms of transportation network construction, whether it is roads, railways, or bridges, there is a huge demand for building materials such as cement, pipelines, and smart lighting systems, which undoubtedly provides a vast market space for building materials enterprises.

(2) The Real Estate Market is Flourishing

The Indonesian real estate market is showing a prosperous outlook. On one hand, with economic development and the improvement of residents' living standards, the demand for improved housing continues to grow; on the other hand, the Indonesian government is also increasing efforts to build affordable housing. Rusmin Lawin, Vice Chairman of the Indonesian Real Estate Association, mentioned that Indonesia is currently facing a significant supply and demand gap for affordable housing, with a real estate development boom underway. Real estate development spans more than 170 industrial chain segments, involving a wide range of building material demands—from basic construction materials to decorative and finishing materials—each segment harboring enormous business opportunities.

China National Building Material: Outstanding Quality, Distinct Advantages

Amid the booming development of Indonesia's construction materials market, Chinese building materials have secured an important position in the Indonesian market by leveraging their unique advantages. China has been Indonesia's largest trading partner for many consecutive years, achieving fruitful cooperation in the construction materials sector. In 2023, the bilateral trade volume between China and Indonesia reached USD 127.12 billion, fully demonstrating the high compatibility and strong demand for Chinese goods in the Indonesian market.

Outstanding cost-performance ratio

China has a well-established building materials industry chain, and large-scale production effectively controls costs. While ensuring product quality, Chinese building materials products have a significant price advantage compared to those from Europe and America. For example, the quoted price for Chinese steel structures is 30% lower than that of Europe and America. In the price-sensitive Indonesian market, this advantage is undoubtedly very attractive, helping Indonesian clients complete high-quality construction projects while controlling costs.

A wide variety of products

Over years of development, Chinese building material companies have developed strong R&D and production capabilities, offering a highly diverse range of building material products that cover all aspects and fields of construction. Whether it is traditional cement, steel, glass, or new eco-friendly and smart building materials, China can meet the diverse needs of the Indonesian market. This allows Indonesian customers to procure almost all the required building materials from one country, significantly improving procurement efficiency and reducing procurement costs.

Strong technological innovation capability

Chinese building materials companies have made significant investments in technological innovation, continuously launching innovative products and solutions. For instance, new materials independently developed by China National Building Material Group, such as quartz glass, fiberglass, and carbon fiber, are widely used in high-end construction sectors, providing higher quality and more reliable options for construction projects. As green building becomes a global trend, China's green and environmentally friendly building materials are also highly favored in the Indonesian market, helping Indonesia achieve its sustainable development goals in the construction industry.

(3) Policy Benefits: Helping to Open Up the Indonesian Market Defense

In April 2025, Indonesia officially abolished the TKDN (local content) policy, eliminating the mandatory percentage requirement for local raw materials. Simultaneously, it relaxed import quotas for industrial products such as steel and completely removed quotas for agricultural products. This significant policy adjustment has cleared numerous obstacles for Chinese building materials companies entering the Indonesian market, greatly reducing market entry barriers and providing unprecedented development opportunities. The previous "gray customs clearance" issues caused by exhausted quotas are being replaced by transparent regulations, allowing Chinese building materials companies to export products to Indonesia more smoothly.

Moreover, the entry into force of the RCEP has provided additional support for Chinese building materials enterprises in the Indonesian market. Under the RCEP framework, 90% of building materials products enjoy zero tariffs, further amplifying the price advantage of Chinese building materials and enhancing their competitiveness in the Indonesian market. Simultaneously, the provisions of the RCEP on trade facilitation and investment liberalization also offer a more stable and transparent policy environment for Chinese enterprises to engage in investment and trade activities in Indonesia.

Indonesia, a market full of vitality and opportunities, is opening its arms to welcome global building materials enterprises. Its vast market size, continuously growing demand, the outstanding advantages of Chinese building materials products, and favorable policy environment together form a highly attractive business blueprint. For exhibitors intending to expand into overseas markets, the Indonesian building materials market is undoubtedly a rare place for investment and business development. Let's seize the opportunity and work together to write a glorious chapter in the building materials industry on this hopeful land of Indonesia!

【Copyright and Disclaimer】The above information is collected and organized by PlastMatch. The copyright belongs to the original author. This article is reprinted for the purpose of providing more information, and it does not imply that PlastMatch endorses the views expressed in the article or guarantees its accuracy. If there are any errors in the source attribution or if your legitimate rights have been infringed, please contact us, and we will promptly correct or remove the content. If other media, websites, or individuals use the aforementioned content, they must clearly indicate the original source and origin of the work and assume legal responsibility on their own.

Indonesia's Building Materials Market: Unlimited Opportunities!

1. Indonesian Building Materials Market: Large Scale and Promising Prospects

Most Popular