Indonesia’s expanding property sector and pervasive construction activity have created a burgeoning market for building materials. In the housing sector, this need has been met primarily by the local market. On the other hand, the demand for building materials for use in commercial buildings (e.g., apartments or condominiums, hotels, and offices) provides an excellent market for higher value and sophisticated functional building materials from the United States.
The U.S. has played an important role as a major supplier of building materials to Indonesia and has seen its exports increase year by year. Indonesia still imports materials such as prefabricated building products including sanitary, plumbing, heating, lighting fixtures and fittings from the U.S.
The U.S. market share is increasing for exports of panels and hardware, lockers and security systems. Major competitors in the building materials market are China, Japan, South Korea, Taiwan, Germany, Belgium, Luxembourg and Australia.
The government has expanded the opportunities for private sector involvement and has even allowed foreign investors to form build-operate-transfer arrangements. This action has contributed significantly to the growth of the industry. Another stimulus to the construction industry has come from public procurement by the government for development projects.