ABSTRACT

Indonesia is among the largest construction markets in the world. For the current decade, the government has put infrastructure provision as the top priority of the nation. It is estimated about USD 400 billion will be spent for infrastructure development until 2019. It will be carried out in the next five-year medium-term development plan. This chapter describes the Indonesian construction industry and its development initiatives, programmes, achievements and challenges. It also presents fundamental issues of construction industry development. Since 2000, the government has pushed consulting and contracting companies to develop their capacity, capability and competitiveness. Currently, there are many construction companies, mostly state-owned companies, already becoming public. Indonesia has analysed the possible implementation of a sustainable agenda for national movements in sustainable construction. Different stakeholders in Indonesia have established a starting point to embrace sustainable construction principles. The barriers for effective implementation are complex.