The Indonesian construction sector employs over 8.7 million workers, according to Statistics Indonesia (BPS). The data shows the industry’s critical role not only in driving infrastructure projects but also in providing jobs and contributing to the national economy. In the second quarter of 2025, construction became the fourth-largest contributor to Gross Domestic Product (GDP) with a share of 9.48 percent, underscoring its importance alongside manufacturing, agriculture, and trade.
Indonesian Construction Sector Employment Reaches 8.7 Million
Based on the National Labor Force Survey (Sakernas) in February 2025, the construction sector absorbed more than 8.7 million people. This figure represents 5.97 percent of Indonesia’s total employed population. BPS Head Amalia Adininggar Widyasanti said, “From the labor side, based on the National Labor Force Survey or Sakernas in February 2025, the construction sector absorbed more than 8.7 million people or around 5.97 percent of the total employed population in Indonesia.”
She highlighted that the construction industry plays a more labor-intensive role compared with other sectors, second only to agriculture. This characteristic makes construction vital for creating jobs, especially for workers seeking opportunities beyond farming.
Construction GDP Contribution Strengthens National Economy
The construction GDP contribution reached 9.48 percent in the second quarter of 2025, according to BPS data. This placed the sector as the fourth-largest driver of the national economy. “The share of the construction sector is 9.48 percent, the fourth largest after industry, agriculture, and trade, then followed by construction,” Amalia explained.
This contribution highlights construction’s dual role: supporting infrastructure growth and stimulating broad-based economic progress. Infrastructure projects generate immediate employment while laying foundations for long-term productivity and competitiveness. Amalia emphasized, “The construction sector plays a very strategic role in Indonesia’s economy.”
Industry Calls for Clearer Construction Employment Data
The Indonesian National Construction Implementation Association (GAPENSI) responded to the BPS figures by calling for greater clarity on the scope of the data. GAPENSI Chairman Andi Rukman Nurdin stressed the need to confirm whether the 8.7 million workers include permanent employees of construction firms, freelance workers, or those engaged on a project-by-project basis.
“Clarifying this data is crucial as a foundation for government policy-making and for associations in developing programs to support construction workers,” he said. GAPENSI argued that if informal workers are included, more focus must be placed on training, certification, and protection to ensure equal opportunities and legal safeguards for all workers.
“As the oldest association in the construction services sector, GAPENSI is ready to collaborate with BPS, the Ministry of Public Works, and other stakeholders to synchronize and update data,” Andi added. He stressed that reliable data forms the foundation for protecting workers and ensuring sustainable growth for contractors.
Infrastructure Development Impact on Jobs and Welfare
The government views infrastructure investment as more than just an economic driver. President Prabowo Subianto expressed optimism that ongoing projects would benefit the broader workforce and future generations. He said, “The investments we will begin implementing this year will result in downstreaming, so the added value of all our raw materials can be enjoyed by the Indonesian people. These investments will also generate jobs. We estimate that over the next five years, eight million jobs will be created.”
Prabowo also emphasized resilience against those who attempt to undermine optimism. He reaffirmed his determination to continue building the nation and securing opportunities for young Indonesians. Infrastructure development, therefore, stands as a pillar not only of GDP growth but also of social welfare and national progress.
A Strategic Role in Indonesia’s Future
The Indonesian construction sector employs millions and contributes significantly to GDP, proving its central role in the nation’s development. Beyond numbers, the industry creates opportunities, improves welfare, and supports long-term economic resilience. Collaboration between the government, associations, and stakeholders will be crucial in maximizing these benefits. With strong investment and accurate data, the construction sector is set to remain a strategic driver of Indonesia’s bright and sustainable future.
Source: antaranews.com, cnnindonesia.com, finance.detik.com
Image: Getty Images
