Indonesia Infrastructure Report Q3 2016 - New Study Released

From: Fast Market Research, Inc.
Published: Mon Jun 13 2016

Despite expanding use of public-private partnerships and increased public funding for energy and transport, Indonesia will continue to present investors with a range of operational challenges, leading to frequent project delays and development backlogs. We expect the residential and non-residential sub-sector to outperform in 2016 followed by railways.

Latest Updates And Structural Trends

We expect to see growth for 2016 and 2017 come in at 7.2% and 7.3% respectively, with residential and non-residential construction expected to post the strongest annual growth rates.

The 880MW power contract secured jointly by Japan-based Mitsubishi Hitachi Power Systems (MHPS), Mitsubishi Corporation and Wasa Mitra Engineering (WASA) confirms rising Japanese interest in Indonesia's energy and utilities sector.

We believe land acquisition will remain one of the key risks to infrastructure projects in the near term and the government's decision to establish a special public service agency in the form of a Land Bank in order to speed up the land acquisition process poses an upside risk to our forecast.

Full Report Details at

Risk/Reward Index

Indonesia has an Infrastructure RRI score of 56.3 in Q316 due to an uptick in the project pipeline.

Indonesia ranks sixth for rewards, following South Korea. Huge demand for new infrastructure development and openness to foreign investment mean Indonesia performs relatively well on the Rewards side, though a weak labour market hampers growth.

Indonesia's score for risks is under the regional average, due to widespread corruption and the lack of transparency in the tendering process where state-owned enterprises often dominate.

The Indonesia Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Indonesia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Indonesian infrastructure and construction industry.

Key Benefits
Benchmark BMI's independent infrastructure industry forecasts for Indonesia to test other views - a key input for successful budgetary and planning in the Indonesian infrastructure market.
Target business opportunities and risks in the Indonesian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Indonesia.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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Contact Phone: 1-413-485-7001

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