The Property and Construction Sectors Drive the Growth of the Building Materials Industry

●According to the Directorate General of Small, Medium, and Various Industries (Ditjen IKMA) at the Ministry of Industry (Kemenperin), the real estate and construction sectors, as users of building material production, are expected to grow by 2.78% and 2.81% respectively on an annual basis or Year on Year (YoY) in 2022.

●Yedi Sabaryadi, Director of Small and Medium-sized Enterprises (SMEs) for Food, Furniture, and Building Materials (PFBB) at the Ministry of Industry, explained that indications of increased use of building materials in Indonesia can also be seen in the budget structure in the 2022 State Budget (RAPBN), where infrastructure ranks third with a budget allocation of Rp 384.8 trillion.

●Yedi also mentioned that when looking at the export-import side, the performance of non-metallic mineral export, including building materials, increased in 2021. However, during the same period, the value of non-metallic mineral industry imports also increased sharply by 34.8 percent. Over the past five years, import values have consistently exceeded export values, indicating that the domestic market is still significant and supplied with export goods.

●Based on a study conducted by the Ministry of Industry in 2022, data shows the five most dominant materials used in infrastructure projects. These materials include cement, gravel, bricks, ceramics, and building material derivative products such as readymix and reinforcing steel.

●The survey results from this study mentioned that SMEs in the building materials industry play a role in supplying materials for their projects.

●He explained that in 2021, his directorate had the nomenclature of the Directorate of SMEs for Food, Wood Products, and Furniture. Now, the nomenclature has changed to the Directorate of SMEs for Food, Furniture, and Building Materials (PFBB).

●This change signifies that the directorate has been given a new task of overseeing SMEs in the building materials sector. In 2022, the Directorate of SMEs for PFBB has implemented several programs related to SMEs in the building materials sector.