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Jakarta Post

Analysis: Construction in 2020: Benefitting from infrastructure development

  • Mamay Sukaesih

Jakarta   /   Wed, January 15 2020   /  02:08 am

In the past five years, the construction sector has grown faster than the national economy. The sector grew 6.1 percent while national economic growth was at 5 percent on average from 2015 to 2019.In January to September 2019, however, construction sector growth declined to 5.8 percent year-on-year (yoy) compared with 6.3 percent in the same period a year earlier. A slowdown in the property and infrastructure sectors was a major contributing factor behind the decrease in growth in the construction industry. Infrastructure spending in 2019, which only grew 1.4 percent yoy, was lower than 3.8 percent yoy in the previous year. Going forward, however, the Bank Mandiri economic research team predicts the construction sector will improve in 2020. We estimate the sector will grow 6.02 percent yoy in 2020. Some factors driving growth in the sector are infrastructure and property development. The...