Overview Of Construction Service & Industry in Indonesia

y
Dr. Sudarto
Overview of
Construction Services & Industry
in Indonesia
• Chairman of Indonesian Contractors Association (ICA)
• President of International Federation of Asian and Western
Pacific Contractors Association (IFAWPCA)

Presentation will cover:
• Short brief about ICA
(Indonesian Contractors Association)
• Capability of ICA members
• Construction Condition in Indonesia

ICA – Indonesian Contractors Association
Established in 1973.
• ICA members now has become one of
Indonesia main player in constructions
industry.
• Currently ICA members are all big scale
contractors in Indonesia.

Vision:
ICA is to promote and encourages a highly
reliable, independent, productive,
accountable and competitive National
construction industry either in National or
International market.

Membership
• Regular Members:
Private Companies, State-Owned Companies, and
Foreign Companies that already have a legal entity
in Indonesia
• Associate Members:
‣ Foreign Companies that have foreign legal
entities and have representatives in Indonesia,
‣ Companies that are not contractors who have
relationships with contractors (specialist
contractors),
‣ Contractors Companies who do not meet the
requirements of regular membership

ICA’s Members
8%
23%
Private
Company
Foreign
Company
State Owned
69%

International Organization Membership:
• IFAWPCA (International Federation of Asian and Western
Pacific Contractors Association).
IFAWPCA Members : Indonesia, Japan, Korea, Malaysia,
Maldives, Nepal, New Zealand, Philippine, Singapore, Sri
Lanka, Thailand, Australia, Bangladesh, Taiwan (China),
Hong Kong, India.
• ACF (ASEAN Construction Federation).
ACF Members : Indonesia, Malaysia, Singapore, Thailand,
Philippine, Vietnamese and Cambodia.

Capability of ICA’s Member
• Some of ICA members not only working as
contractors but also as:
‣ Investors, especially for infrastructure
projects (electricity, toll road, and drinking
water) through PPP program, and;
‣ as Direct investment for commercial
buildings such as, office tower, apartment,
hotel, and properties (real estate).

• ICA members also have partnerships
experience with international construction
companies to do construction project for
either national projects or overseas projects.

Recommended Partnership
There are 15 Top Indonesian Constructors that
recommended to work together with investors to do
construction in Indonesia as:
Partner for investment
Join venture contractor or join operation
Contractor

No
LIST OF THE TOP 15 INDONESIAN CONTRACTORS
Companies
Sales 2011
(in Million USD)
Sales 2012
(in Million USD)
1 PT WIJAYA KARYA (Persero) Tbk 976.6 1234.2
2 PT WASKITA KARYA(Persero) Tbk 799.4 917.5
3 PT PP (Persero) Tbk 620.0 800.0
4 PT ADHI KARYA (Persero) Tbk 735.7 794.5
5 PT HUTAMA KARYA (Persero) 375.2 524.8
6 PT TOTAL BANGUN PERSADA Tbk 390.0 430.0
7 PT JAYA KONSTRUKSI MANGGALA PRATAMA, Tbk 353.0 412.0
8 PT MULTI STRUCTURE 217.0 260.0
9 PT NUSA RAYA CIPTA 173.8 210.9
10 PT BRANTAS ABIPRAYA (Persero) 124.7 171.7
11 PT BANGUN CIPTA KONTRAKTOR 101.1 170.0
12 PT NINDYA KARYA (Persero) 94.2 167.9
13 PT NUSA KONSTRUKSI ENJINIRING 120.8 126.7
14 PT WIJAYA KUSUMA CONTRACTORS 83.8 116.3
15 PT TATAMULIA NUSANTARA INDAH < 100 < 110

Capability Example From 15 Top Contractor Indonesia:
An example to illustrate the capability of the companies
are as follows:
• State owned company, PT. Wijaya Karya Tbk. (WIKA)
• Private company, PT. Total Bangun Perkasa Tbk.
The above companies are publicly listed on the Jakarta
Stock Exchange.

PT. Wijaya Karya Tbk. - Wika

PT TOTAL BANGUN PERSADA Tbk
“Pride & Excellent in Construction”
• Established in 1971.
A Public company since July 2006
• Indonesia’s largest building construction company, known for
integrity, respect, fair dealing, good quality, excellent customer
service
• Focus on premium high-rise and commercial buildings, with
experiences in Design & Build Services
• Received accreditation from International Standard
Organization :
ISO 9001 : 2008 (2011)
OHSAS 18001 : 2007 (2012)
ISO 14001 : 2004 (2013)
• Corporate Founder of Green Building Council Indonesia

PORTFOLIO – MIXED USES
CENTRAL PARK, JAKARTA
Construction of Mall , Office, Apartment & Pullman Hotel
Total Gross Floor Area (GFA) = 675,000 SQM
Year of Construction : 2007 - 2010

PORTFOLIO – CONDOMINIUM
REGATTA, JAKARTA
Construction of Apartment “THE REGATTA”
Total Gross Floor Area (GFA) = 126.327 SQM
Year of Construction : 2006 - 2008

ON-GOING PROJECT
AUSTRALIAN EMBASSY
Construction of NEW AUSTRALIAN EMBASSY COMPOUND, JAKARTA
Total Gross Floor Area (GFA) = 48,000 SQM
Year of Construction : 2012 - 2015 (LEIGHTON - TOTAL J.O.)

ON-GOING PROJECT
INDONESIA INTERNATIONAL EXPO
Construction of INDONESIA INTERNATIONAL EXPO – BSD CITY
Total Gross Floor Area (GFA) = 185,600 SQM
Year of Construction : 2012-2014

Construction Condition
in Indonesia

Construction sector contribution to GDP

Construction Market Value
45
40
35
30
25
20
15
10
5
0
in Billion US$
2011 2012 2013

Human Resources
• As a country with large number of productive
age, Indonesia has many engineers,
architects, interior designers, landscapers,
and other professionals support. We also
have specialist contractors such as,
mechanic electrical, substructure and others.

Materials Support
Materials such as cement, steel bar, concrete
pile, glass, asphalt are available from local
production and some import. The supply is
increasing to support the construction growth.

Cement Capacity
120
100
80
60
In million ton
40
20
0
2012 2013 2014 2015 2016 2017 2018

Major Materials Supplies in 2012
No Material Amount Supply
1 Steel 18.9 million ton
2 Asphalt 890 thousand ton
Note: the all above materials should be increase as per demand. It
predicted for significant increment.

Machine Support
Heavy equipment such as cranes, tractors,
bulldozers, concrete pumps, excavators, etc.
are available with various brand selection.

Financial Support
Many overseas banks such as:
Deutsche Bank,
Bank of Tokyo;
ANZ,
The Bank of China,
Commonwealth Bank,
Citibank,
HSBC,
UOB,
etc. are opening their branch in Indonesia.

“We open up greater opportunities and invite you to
come to invest in Indonesia, where you can find a lot
of opportunity to explore construction industry
especially infrastructure as well as commercial project.
Please do not hesitate to contact ICA for further
Information..”
Contact Address:
ICA – Indonesian Contractors Association
Wijaya Graha Puri Blok D-1
Jl. Darmawangsa Raya No. 2 Jakarta
Phone: +62 21 7200794, 72790672
Fax: +62 21 7206805
Website: www.aki.or.id
Email: akinet@aki.or.id