Indonesia Advance Building Materials Market Overview, 2030

The Indonesia Advanced Building Material Market is a dynamic and rapidly evolving sector that reflects the nation’s commitment to sustainable development and modernization. As one of Southeast Asia’s largest economies, Indonesia is experiencing a construction boom driven by urbanization, population growth, and infrastructure expansion. This market encompasses a wide array of materials designed to enhance the efficiency, durability, and sustainability of construction projects. From eco-friendly green building materials to technologically advanced solutions, the market caters to diverse applications across residential, commercial, and industrial sectors. Indonesia’s tropical climate and susceptibility to natural disasters, such as earthquakes and floods, have further shaped the demand for innovative materials that ensure structural resilience and environmental harmony. The market is also influenced by the country’s rich cultural heritage, with a focus on blending modernity with traditional aesthetics. Advanced building materials in Indonesia are not just about functionality; they are a testament to the nation’s vision for a sustainable and resilient future, aligning with global trends while addressing local challenges. Historically, the Indonesia Advanced Building Material Market has been shaped by the country’s unique geographical and environmental conditions. The devastating earthquakes and tsunamis of the past have underscored the need for stringent building standards and resilient materials. Regulatory policies such as the Indonesian National Standard (SNI) and the Green Building Council Indonesia (GBCI) guidelines play a pivotal role in shaping the market. These frameworks promote the use of sustainable and energy-efficient materials, ensuring compliance with international standards while addressing local needs. Government initiatives, including the National Medium-Term Development Plan (RPJMN), have further accelerated the adoption of advanced materials by prioritizing infrastructure development and green building practices.

According to the research report "Indonesia Advanced Building Material Market Overview, 2030," published by Bonafide Research, the Indonesia Advanced Building Material Market is anticipated to grow at more than 7.67 % CAGR from 2025 to 2030. The Indonesia Advanced Building Material Market is experiencing significant growth, driven by rapid urbanization, population expansion, and the government's focus on infrastructure development. Market trends indicate a rising demand for sustainable and eco-friendly materials, as the construction industry aligns with global environmental goals. The adoption of green building practices is reshaping the market, with materials like recycled aggregates, bamboo, and bio-based products gaining popularity. Technological advancements are also playing a pivotal role, with innovations such as self-healing concrete, thermochromic glass, and energy-efficient insulation enhancing construction efficiency and durability. Market drivers include the increasing need for resilient infrastructure to withstand natural disasters, such as earthquakes and floods, and the growing awareness of climate change's impact on construction practices. The government's ambitious infrastructure projects, such as the National Medium-Term Development Plan (RPJMN) and the "One Million Houses" program, are bolstering the demand for advanced building materials. These initiatives aim to address housing shortages, improve urban infrastructure, and promote sustainable development. Trade programs and international collaborations are further accelerating market growth, facilitating the exchange of technology and expertise. The integration of prefabricated and modular construction materials is emerging as a key trend, offering cost and time efficiency for large-scale projects. Additionally, the focus on lightweight and high-performance materials, such as aluminum composites and fiber-reinforced polymers, is transforming the industry. Challenges such as supply chain disruptions, regulatory complexities, and a shortage of skilled labor persist, but the market continues to adapt through innovation and strategic investments.

Green building materials dominate the market, driven by Indonesia's commitment to sustainable development under the Green Building Council Indonesia (GBCI) certification system and the government's push for low-carbon construction. Bamboo, a traditional material, has been modernized into engineered bamboo composites, offering high tensile strength and sustainability for structures in earthquake-prone regions. Recycled materials, such as plastic waste-based bricks and fly ash concrete, are gaining traction, particularly in urban projects like Jakarta's MRT stations, where circular economy principles are prioritized. Low-VOC paints and coatings are increasingly specified for high-rise developments to meet indoor air quality standards under the Greenship rating system. Meanwhile, technically advanced materials are emerging to address Indonesia's climatic and geological challenges, including high humidity, seismic activity, and tropical storms. Cross-laminated timber (CLT) is being adopted for mid-rise buildings, combining sustainability with earthquake resilience, while fiber-reinforced polymers (FRPs) are used to reinforce infrastructure in coastal areas vulnerable to corrosion. Smart materials, such as photocatalytic concrete that reduces urban heat island effects, are being tested in Surabaya and Bandung’s smart city projects. Self-healing concrete, embedded with bacteria that repair microcracks, is gaining interest for use in Indonesia’s flood-prone regions. Hybrid solutions like geopolymer concrete made from industrial waste such as palm oil fly ash are bridging the gap between sustainability and high performance, reducing reliance on carbon-intensive Portland cement.

Advanced Cement and Concrete are foundational to this segment, offering enhanced strength, durability, and sustainability. These materials incorporate supplementary cementitious components like fly ash and slag, which reduce carbon emissions and improve performance, making them ideal for infrastructure projects and urban development. Cross-laminated Timber (CLT) is gaining popularity for its eco-friendliness and structural efficiency. As a prefabricated wood panel product, CLT provides exceptional strength and stability, making it suitable for residential and commercial buildings while promoting sustainable forestry practices. Structural Insulated Panels (SIPs) are another key material, valued for their energy efficiency and ease of installation. These panels consist of an insulating foam core sandwiched between two structural facings, typically oriented strand board (OSB), offering superior thermal performance and reducing construction time. Sealants play a critical role in ensuring the longevity and integrity of buildings by providing airtight and watertight seals. Advanced sealants in this market are designed to withstand Indonesia's tropical climate and extreme weather conditions, offering flexibility, durability, and resistance to UV radiation. The other category encompasses cutting-edge materials like Aerogels, Recycled Composite Materials, and Geopolymers. Aerogels are known for their lightweight and insulating properties, making them ideal for applications requiring high thermal resistance. Recycled Composite Materials contribute to sustainability by repurposing waste materials into high-performance building products, addressing environmental concerns. Geopolymers, an emerging class of materials, are lauded for their low carbon footprint and exceptional durability, making them suitable for infrastructure projects and disaster-resilient construction.

In residential construction, advanced building materials are pivotal in addressing the growing demand for sustainable and modern housing solutions. Materials such as energy-efficient insulation, recycled composites, and smart glass are widely used to enhance energy efficiency, durability, and aesthetic appeal, aligning with Indonesia’s environmental goals and urbanization trends. In commercial construction, which includes offices, malls, hotels, and other establishments, advanced materials play a critical role in optimizing building performance and reducing operational costs. Features like fire-resistant cladding, acoustic insulation, and self-healing concrete are increasingly integrated into commercial projects to meet the demands of safety, functionality, and sustainability. Industrial buildings, such as factories and warehouses, benefit from materials like structural insulated panels and advanced sealants, which provide superior thermal regulation, structural integrity, and resistance to Indonesia’s tropical climate. These materials are essential for maintaining operational efficiency and ensuring the longevity of industrial facilities. Infrastructure projects, including bridges, roads, tunnels, and airports, rely on advanced materials like geopolymer concrete and recycled composites to withstand heavy loads and harsh environmental conditions. These materials contribute to the durability and sustainability of critical infrastructure, supporting Indonesia’s economic growth and connectivity. Institutional construction, encompassing hospitals, schools, and government buildings, prioritizes materials that enhance safety, energy efficiency, and occupant comfort. Innovations such as antimicrobial coatings, energy-efficient windows, and advanced cement are widely used in these projects to create environments that are both functional and sustainable.



Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Advance Building Materials Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Green Building Materials
• Technically Advanced Building Materials

By Materials
• Advanced Cement & Concrete
• Cross-laminated Timber
• Structural Insulated Panel
• Sealants
• Other (Aerogels, Recycled Composite Materials, Geopolymer)

By End Use
• Residential Construction
• Commercial Construction (Offices, Malls, Hotels, etc.)
• Industrial Buildings (Factories, Warehouses)
• Infrastructure (Bridges, Roads, Tunnels, Airports)
• Institutional Construction (Hospitals, Schools, Government Buildings)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.