Indonesia’s Construction Sector Calls for Competence

Editorial Team
Editorial Team
Indonesia's Construction Sector Calls for Competence

According to the National Development Planning Agency (Bappenas), as Government and private sector infrastructure projects escalate, Indonesia’s construction sector is forecast to grow by 8.1 percent in 2017. This condition is expected to boost investment that will drive growth in related industries, create jobs and absorb labour.  

The Indonesian Government’s focus on accelerating infrastructure development in all parts of Indonesia, as declared by President Joko Widodo, has pushed growth of the construction sector.

 One of the major impacts of the construction sector growth is the increasing demand for construction services companies and their workers. The Director General of Construction Development at the Ministry of Public Works and Public Housing (PWPH), Yusid Toyib stated: “Indonesia is facing a significant challenge in developing construction service businesses and providing skilled construction workers. Especially after the establishment of the ASEAN Economic Community, the local construction service companies and their workers should be able to compete in providing high-quality work, both in Indonesia and abroad.”

Data from the Central Bureau of Statistics shows that, in the first quarter of 2015, the construction sector absorbed only 7.72 million people compared to the industrial sector (16.38 million people), trade (26.65 million people) or the agricultural sector (40.12 million people). The low absorption of people by the construction sector was caused by the unavailability of competent workers.  Furthermore, first quarter 2016 data from the National Construction Service and Development Board (LPJKN) indicated that the number of certified construction workers was only 500,566 people. 

“The improvement of companies’ managerial capacity and workers’ skills in the construction sector is our particular concern,” Toyib explained. “We have been working together with various professional associations and institutions related to the construction sector to improve the managerial competency and technical expertise of construction workers. In addition to that, we also encourage them to keep participating in skills training and certification programme in order to be able to compete with workers from other countries.

Yusid also mentioned that the Ministry of PWPH continues to promote Regulation No. 45/PRT/M/2015 on Continuing Professional Development (CPD) that calls for all construction workers to develop their expertise and professional attitude on a national and international scale. This regulation was issued to anticipate the implementation of the ASEAN Economic Community this year.

As the host of Konstruksi Indonesia in 2016, which this year will be co-located with The Big 5 Construct Indonesia 2016, the Ministry of Public Works and Public Housing expects companies from the construction industry to leverage these two events to get valuable insights on new equipment and best practices in the construction sector.

Hundreds of local and international exhibitors will bring to Indonesia the most innovative and never-seen-before products for the built environment at The Big 5 Construct Indonesia 2016. Organised by dmg events Middle East, Asia & Africa, the event also provides an extensive educational programme. Construction professionals will be able to attend for free, dozens of CPD Workshops delivered by industry experts, including topics such as Project Management, BIM, LEED and a day of workshops dedicated to sustainable topics on 11 November.

“The Big 5 Construct Indonesia 2016 is tailored specifically to meet the needs of the local construction sector. Not only we will bring the best and latest products for the built environment from global manufacturers; the event will host a series of free-to-attend, practical workshops providing industry trends, tools, applications and techniques for the construction and infrastructure sectors in Indonesia,” said Ashley Roberts, Event Director, dmg events. 

Konstruksi Indonesia and The Big 5 Construct Indonesia 2016 will be held in conjunction with Indonesia Infrastructure Week 2016 from 9-11 November at the Jakarta Convention Centre. The exhibition will present around 600 exhibitors from more than 20 countries, as well as bring together stakeholders from central and local governments and the private sector.

Further information about participating and visiting this event can be obtained through You can also register yourself as visitor through

Share This Article
The Editorial team at APAC Outlook Magazine is a team of professional in-house editors led by Jack Salter, Head of Editorial at Outlook Publishing.