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Jakarta, Indonesia Shows Fast Growth in Construction Industry

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INDONESIA- A Developing Nation

India and China were reported to be the leading countries in Asia in the construction industry for the last decade and were the only ones who can compete in the global market. However, Indonesia, one of the archipelagoes in the Asia-pacific region, had accelerated fast in the industry and had been acknowledged by analysts and marketers around the world.

South East Asian countries have developed throughout the years and Indonesia is no exception. Infrastructure industry is attracting investors all over the world due to the creation of housings, buildings, transportation facilities and commercial establishments in the country. Despite of economic fluctuations, political instability and riot within Indonesia, the country has managed to maintain and increase its infrastructure economy. This is largely due to the country’s resources and manpower. The number of contractors classified as large rose from 695 to 1,742 between 2008 and 2013, while the number of medium-sized firms increased from around 10,000 to 21,000, and small-sized firms expanded in number from over 100,000 to 160,000. In 2014, the construction Industry contributes 13% of the country’s Gross Domestic Product (GDP). Heavy equipment such as cranes, tractors, bulldozers, concrete pumps, excavators, etc. are available with various brand selection in various construction companies.

Construction Equipment Rentals

The revenues of construction equipment market in Jakarta, Indonesia have grown at a healthy CAGR of 12.5%. Urbanization and commercialization have encouraged the development of construction projects which propelled the use of needed equipment. Analysts forecast the Construction Equipment market in Indonesia to grow at a CAGR of 10% over the period of 2014 to 2018.

There are organizations in the country which prefer to use their own construction equipment but several SMEs find it difficult to buy and maintain these construction materials because of its high cost and can only be used one-time. In addition, because of the growing construction industry, competition among the owners grows fiercer and they are forced to innovate and add value-added services. As a solution to this, some construction materials vendors start to lease their equipment. Hence, some construction equipment vendors have started offering equipment such as excavators, wheel loaders, motor graders, crawler cranes, truck cranes, and truck mounted cranes on a rental basis. This construction equipment rental in the country allows cost-driven organizations in developing countries to opt for the latest technology construction equipment at minimal cost, thereby improving their operational productivity. Thus, the option of renting construction equipment encourages customers to use a wide range of construction equipment.

About Axis Capital Group

Axis Capital Group specializes in construction equipment rental and sales from cranes to excavators and related heavy construction equipment throughout Southeast Asia. The company is a multi-line dealership that is committed in assisting you in finding the products that will meet your job requirements.

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Jakarta, Indonesia is not that industrialized like other countries, though. China is still the leading country when it comes to construction industry.

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I have tried contacting this company through a contact form. Nobody answers… until now.

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The economy in Indonesia is indeed fast growing like other countries in South East. There are lots of buildings now and is more like Singapore and Tokyo.

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Rents in some construction companies are so costly. I’d rather buy a new material. At least, I can still use it overtime.

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6Jakarta, Indonesia Shows Fast Growth in Construction Industry Empty well on Tue Feb 24, 2015 4:11 am


Indonesia is a good country with good people and rich resources that is why it’s no wonder they are now developing and growing. They still have a lot more to give!

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