ANALYSIS OF MODULAR CONSTRUCTION MARKET CONDITION IN INDONESIA

• Main Author: Bijak Prasojo, Lugas
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82558
• Institution: Institut Teknologi Bandung

The construction sector is crucial to Indonesia's economy. This is evident from the increasing budget allocation for the construction sector in the State Budget Plan (RAPBN), which is projected to reach IDR 422.7 trillion in 2024, and the sector's success in becoming the fifth-largest contributor to GDP at 9.86% in 2023. The construction sector in Indonesia continues to evolve, with modular construction being one of its advancements, offering numerous advantages. Unfortunately, the adoption and market for modular construction in Indonesia lag significantly behind other countries such as China, Japan, and the United States. Additionally, research on the modular construction market in Indonesia is lacking, resulting in a lack of comprehensive understanding of this field. Therefore, there is a need for research that analyzes the current conditions, including development, market analysis, financial analysis, PESTLE analysis, and SWOT-TOWS analysis of the modular construction market in Indonesia. The aim of this research is to provide an overview of the modular construction market conditions in Indonesia. This research employs a qualitative approach by conducting in-depth interviews with modular construction industry players as primary data and literature studies as secondary data. The findings indicate that the modular construction market in Indonesia is currently limited to service offerings provided based on specific project demands. The modular construction market in Indonesia shows positive development, although the market size is relatively small and still dependent on specific events such as Covid-19 and the development of the new capital city (IKN). The supply chain is also not yet effective and efficient, making modular construction costs in Indonesia higher than conventional construction. Therefore, synergistic cooperation between the government as the regulator, the industry as practitioners, and society as consumers is necessary for the commercialization of modular iv construction so that the modular construction market in Indonesia can develop and gain a competitive advantage.