Challenges and Chances of Sustainable Construction in Indonesia: Policy Insights

Abstract

The construction industry in Indonesia is the fourth-largest contributor to the country’s GDP; however, the industry accounts for one-third of total CO2 emissions. As 71% of Indonesians are expected to live in urban by 2030, building sector emissions are also expected to grow at a 4.5% annual rate. The adoption of sustainable construction is required to balance the needs of the community while minimizing the impact on the environment. In 2017, Indonesia integrated its national development planning with the Sustainable Development Goals 2030. Moreover, infrastructure and policies to support the sustainable construction ecosystem began to be implemented. The research aims to assess whether the policies for sustainable construction have been sufficiently all-encompassing and holistic to be implemented appropriately. The analysis was conducted with the descriptive-analysis method. This study concluded that relevant ministries already supported the policies but struggles with execution arose due to underskilled human resources, ineffective stakeholder collaboration, and regional inequality and disparities. The Indonesian government should take advantage of the post-pandemic momentum and potential for high investment values to carry out extensive socialization and fortify the foundation of policies.