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The development of technology is rapidly fast. It shown by the number of technology-savvy population continues to grow. Of course, this condition affects the business sector in Indonesia. Moreover, the economy continues to growth. Then what is the effect? One of the effects is that millennials are increasingly working or even establishing startup companies. Even many professional workers who swerve to work in startup companies.



Startup Opportunities in Construction (Photo by Pixabay from Pexels)


Startup Movement in the Construction Industry

Based on data from the Startup Ranking site, Indonesia occupies the fifth position as the country with the highest number of startup companies. As of September 2019, there were 2,138 startups competing in Indonesia. Of the many startup companies, the fields of e-commerce, fintech and games are still the most chosen fields. Meanwhile, one area that is rarely looked at is the construction industry. So what are startups in the construction sector like in Indonesia?

The number of startups in the construction industry in Indonesia can still be counted on the fingers. One example is This startup is a digital platform for home and building renovations that has only been established for a year. If initially this startup only received a project value of hundreds of millions of rupiah, now it has grown to a value of tens of billions of rupiah. Not grandiose, RenovAsik targets in 2019 to be able to control 0.9% of the total market potential in the special construction business in the Jabodetabek area.

There is another startup called Bildeco. Different from RenovAsik, Bildeco specifically stands as a one stop shop that provides various material needs for road contractors, building contractors and also interiors. Can’t imagine now that building materials can be obtained online, right? Bildeco dared to start.

Then there is the startup Arsitag. This startup offers an easy way to find qualified construction professionals. The construction industry in Indonesia, which is still very traditional, disorganized and less transparent, is expected to get better in this digital era with the smart search that Arsitag offers through practical filters such as location, design style and other specifications.

Meanwhile in other parts of the world, to be precise in California, a startup called Katerra is listed as the first largest startup in the construction industry. They even plan to expand to the Middle East. On LinkedIn, this startup is included in the list of the best startup companies as a place to have a career. Amazing right?

Before the startup in the construction industry in Indonesia was active, it seems that the Katerra startup has been established. Founded in 2015, Katerra has experienced rapid development. This startup provides services ranging from design to finishing construction projects. Not only that, Katerra also offers easy worker management, renovation services to material sales. Katerra employs no less than 7500 employees including architects.


Opportunities and Challenges

Startup opportunities in the construction industry in Indonesia are actually wide open, you know. The level of competition is arguably still very loose. One or two startups in the construction sector have started to emerge, but have only been able to capture a small portion of the existing market share. A strong brand with significant development has not yet been seen.

But of course, it is not easy to penetrate this industry. Like any other industrial field, the construction industry field has its own challenges. In the construction industry, one of the challenges is the public’s skepticism. Many people think, how can construction and digital technology be combined? Something that is difficult for ordinary consumers to understand.

In addition to the challenges of public skepticism, another challenge in building a startup in the construction industry is the ability of founders and networking. Founders not only need to have a strong background in the world of construction, property and architecture, but also marketing, finance, operations and HR. This comprehensive business knowledge will form a solid foundation.

In addition, founders must have a strong leadership mentality. Startup companies in the construction industry in Indonesia are not yet very popular. The ups and downs will come and go. Maybe a startup company will boom for a while and then there will be a shift in interest. will give up facing this challenge, but instead rack their brains on how startup companies in the construction industry can survive and become more recognized.Innovation must continue to be created according to the interests of the community.

Meanwhile, extensive networking is needed from suppliers, associations to government agencies. For example, startup RenovAsik is collaborating with Bluescope Indonesia to organize skills training for foremen. Later the foremen will obtain a certification which is also the result of collaboration with the Ministry of PUPR.

If you are ready to face these challenges, the huge construction business potential will become a lucrative opportunity. As an illustration, in the Greater Jakarta area alone the potential for the construction business reaches a value of Rp. 161 Trillion. Business potential in other developing areas is certainly not much different. It is also recorded that no less than 400,000 housing units are built every year in various regions in Indonesia. Can you imagine the huge opportunity waiting to be worked on, right?



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