Overview of Construction Services & Industry in Indonesia

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1 by Dr. Sudarto Overview of Construction Services & Industry in Indonesia Chairman of Indonesian Contractors Association (ICA) President of International Federation of Asian and Western Pacific Contractors Association (IFAWPCA)

2 Presentation will cover: Short brief about ICA (Indonesian Contractors Association) Capability of ICA members Construction Condition in Indonesia

3 ICA Indonesian Contractors Association Established in ICA members now has become one of Indonesia main player in constructions industry. Currently ICA members are all big scale contractors in Indonesia.

4 Vision: ICA is to promote and encourages a highly reliable, independent, productive, accountable and competitive National construction industry either in National or International market.

5 Membership Regular Members: Private Companies, State-Owned Companies, and Foreign Companies that already have a legal entity in Indonesia Associate Members: Foreign Companies that have foreign legal entities and have representatives in Indonesia, Companies that are not contractors who have relationships with contractors (specialist contractors), Contractors Companies who do not meet the requirements of regular membership

6 ICA s Members 8% 23% Private Company Foreign Company State Owned 69%

7 International Organization Membership: IFAWPCA (International Federation of Asian and Western Pacific Contractors Association). IFAWPCA Members : Indonesia, Japan, Korea, Malaysia, Maldives, Nepal, New Zealand, Philippine, Singapore, Sri Lanka, Thailand, Australia, Bangladesh, Taiwan (China), Hong Kong, India. ACF (ASEAN Construction Federation). ACF Members : Indonesia, Malaysia, Singapore, Thailand, Philippine, Vietnamese and Cambodia.

8 Capability of ICA s Member Some of ICA members not only working as contractors but also as: Investors, especially for infrastructure projects (electricity, toll road, and drinking water) through PPP program, and; as Direct investment for commercial buildings such as, office tower, apartment, hotel, and properties (real estate).

9 ICA members also have partnerships experience with international construction companies to do construction project for either national projects or overseas projects.

10 Recommended Partnership There are 15 Top Indonesian Constructors that recommended to work together with investors to do construction in Indonesia as: Partner for investment Join venture contractor or join operation Contractor

11 No LIST OF THE TOP 15 INDONESIAN CONTRACTORS Companies Sales 2011 (in Million USD) Sales 2012 (in Million USD) 1 PT WIJAYA KARYA (Persero) Tbk PT WASKITA KARYA(Persero) Tbk PT PP (Persero) Tbk PT ADHI KARYA (Persero) Tbk PT HUTAMA KARYA (Persero) PT TOTAL BANGUN PERSADA Tbk PT JAYA KONSTRUKSI MANGGALA PRATAMA, Tbk PT MULTI STRUCTURE PT NUSA RAYA CIPTA PT BRANTAS ABIPRAYA (Persero) PT BANGUN CIPTA KONTRAKTOR PT NINDYA KARYA (Persero) PT NUSA KONSTRUKSI ENJINIRING PT WIJAYA KUSUMA CONTRACTORS PT TATAMULIA NUSANTARA INDAH < 100 < 110

12 Capability Example From 15 Top Contractor Indonesia: An example to illustrate the capability of the companies are as follows: State owned company, PT. Wijaya Karya Tbk. (WIKA) Private company, PT. Total Bangun Perkasa Tbk. The above companies are publicly listed on the Jakarta Stock Exchange.

13 PT. Wijaya Karya Tbk. - Wika

14

15

16

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18 PT TOTAL BANGUN PERSADA Tbk Pride & Excellent in Construction Established in A Public company since July 2006 Indonesia s largest building construction company, known for integrity, respect, fair dealing, good quality, excellent customer service Focus on premium high-rise and commercial buildings, with experiences in Design & Build Services Received accreditation from International Standard Organization : ISO 9001 : 2008 (2011) OHSAS : 2007 (2012) ISO : 2004 (2013) Corporate Founder of Green Building Council Indonesia

19 PORTFOLIO MIXED USES CENTRAL PARK, JAKARTA Construction of Mall, Office, Apartment & Pullman Hotel Total Gross Floor Area (GFA) = 675,000 SQM Year of Construction :

20 PORTFOLIO CONDOMINIUM REGATTA, JAKARTA Construction of Apartment THE REGATTA Total Gross Floor Area (GFA) = SQM Year of Construction :

21 ON-GOING PROJECT AUSTRALIAN EMBASSY Construction of NEW AUSTRALIAN EMBASSY COMPOUND, JAKARTA Total Gross Floor Area (GFA) = 48,000 SQM Year of Construction : (LEIGHTON - TOTAL J.O.)

22 ON-GOING PROJECT INDONESIA INTERNATIONAL EXPO Construction of INDONESIA INTERNATIONAL EXPO BSD CITY Total Gross Floor Area (GFA) = 185,600 SQM Year of Construction :

23 Construction Condition in Indonesia

24 Construction sector contribution to GDP

25 Construction Market Value in Billion US$

26 Human Resources As a country with large number of productive age, Indonesia has many engineers, architects, interior designers, landscapers, and other professionals support. We also have specialist contractors such as, mechanic electrical, substructure and others.

27 Materials Support Materials such as cement, steel bar, concrete pile, glass, asphalt are available from local production and some import. The supply is increasing to support the construction growth.

28 Cement Capacity In million ton

29 Major Materials Supplies in 2012 No Material Amount Supply 1 Steel 18.9 million ton 2 Asphalt 890 thousand ton Note: the all above materials should be increase as per demand. It predicted for significant increment.

30 Machine Support Heavy equipment such as cranes, tractors, bulldozers, concrete pumps, excavators, etc. are available with various brand selection.

31 Financial Support Many overseas banks such as: Deutsche Bank, Bank of Tokyo; ANZ, The Bank of China, Commonwealth Bank, Citibank, HSBC, UOB, etc. are opening their branch in Indonesia.

32 We open up greater opportunities and invite you to come to invest in Indonesia, where you can find a lot of opportunity to explore construction industry especially infrastructure as well as commercial project. Please do not hesitate to contact ICA for further Information.. Contact Address: ICA Indonesian Contractors Association Wijaya Graha Puri Blok D-1 Jl. Darmawangsa Raya No. 2 Jakarta Phone: , Fax: Website:

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