Fast Market Research recommends "Indonesia Infrastructure Report Q3 2013" from Business Monitor International, now available

Boston, MA -- (SBWire) -- 07/13/2013 --We remain optimistic towards the outlook for Indonesia's construction sector in 2013 and have slightly revised up our real growth forecasts for the sector to 7.5% for the year (previously 7.2%). Besides favourable macroeconomic fundamentals, we expect conducive monetary conditions, increased government expenditure, pertinent project progress and a new land acquisition bill to drive construction activity in 2013. Having said that, we see limited scope for construction growth in 2013 and 2014 to outperform its 2012 level. This is because several downside factors (i.e. deepening deficit, rising inflation, bottlenecks in project execution and the 2014 presidential elections) continue to prevent the sector from maximising its growth potential.

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The key factors that will facilitate growth are:

- In January 2013, the Indonesian transportation ministry signed a memorandum of understanding (MoU) with six provincial governments from Sulawesi on the construction of a US$5.2bn, 2,000km integrated railway network in Sulawesi, reports the Jakarta Globe. The MoU is likely to result in the creation of a task force and a grand master plan for the project, according to Deputy Transportation Minister Bambang Susantono. The construction work is likely to start in 2013, with the project scheduled to be carried out under a private-public partnership scheme.
- In February 2013, Adhi Karya lodged a bid to head a five-firm team for the construction of a monorail system in Jakarta, Indonesia. The 51.9km line, which will be the first of its kind in Indonesia, will entail a construction cost of IDR9trn (US$927.8mn). The consortium will begin the construction work as soon as the required permits are issued, with completion due within two years, according to Adhi Karya's President Director Kiswodarmawan.
- In February 2013, a consortium was awarded a US$485mn contract to expand Terminal 3 at Indonesia's Soekarno-Hatta International Airport, reports Airport Technology. The Kawapehajaya Indonesia consortium is comprised of three state-owned companies as well as Hyundai Engineering, Indulexco and Jaya Teknik Indonesia. The project will involve the construction of a new terminal building, a parking area and several roads.
- In March 2013, Indonesian state-owned port operator Pelabuhan Indonesia II (Pelindo II), also known as Indonesia Port Corporation (IPC), officially started construction of the US$4bn Kalibaru port. The Kalibaru port, also known as New Priok, is located in North Jakarta and will be developed under three phases. The entire project is expected to be completed over the next decade.

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