As the largest economy in Southeast Asia, Indonesia recorded a GDP of USD 1.4 trillion in 2023, with a stable annual growth rate of approximately 5%. Supported by a population of 270 million and an urbanization rate of 57%, demand for infrastructure and real estate continues to grow. The government has prioritized the development of Nusantara, the new capital city officially launched in 2024, with plans to establish a 1,700-square-kilometer smart city. Additionally, major commercial and high-rise residential projects in Jakarta, Surabaya, and other key cities are further driving market expansion. Over the next five years, Indonesia’s elevator market is projected to grow at an annual rate of 8%-10%.

Investment and Real Estate Development as Key Growth Drivers

1. Policy Incentives
• The Indonesian government has eased foreign investment regulations, allowing full foreign ownership (up to 100%) in commercial real estate projects.
• To attract infrastructure investment, authorities have introduced tax incentives and policy support measures.

2. Real Estate Market Dynamics
• Jakarta’s premium office market maintains a vacancy rate below 10%, indicating sustained demand.
• The expanding middle class, with per capita income exceeding USD 5,000, is driving demand for mid-tier elevator solutions.
• Secondary cities such as Medan and Bandung are experiencing rapid growth in affordable housing developments.

3. Opportunities in the New Capital Development
• 40% of Nusantara’s development budget is allocated to infrastructure, generating demand for thousands of elevators.
• The government prioritizes suppliers offering cost-effective solutions and strong delivery capabilities.

Future Trends and Market Opportunities

• 2024–2029: The Nusantara development project is expected to generate USD 2 billion in elevator demand.
• Aging infrastructure: 30% of Jakarta’s buildings are over 20 years old, creating a strong demand for elevator modernization and replacement programs.