Indonesia Home Improvement Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Indonesia Home Improvement Market Overview

• The Indonesia Home Improvement Market is valued at USD 800 million, based on a five-year historical analysis of Indonesia’s home improvement spend and its leading position within the ASEAN home improvement market. This growth is primarily driven by increasing urbanization, rising disposable incomes, and a growing trend towards home renovation and improvement projects among consumers, supported by higher residential construction and housing demand in major cities. The market has seen a surge in demand for various home improvement products and services, reflecting a shift in consumer preferences towards enhancing living spaces, driven further by work-from-home adoption, lifestyle upgrades, and expansion of organized DIY and home center formats.
• Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density and economic activity, in line with their status as major urban and industrial hubs. Jakarta, as the capital, leads in terms of consumer spending and infrastructure development, while Surabaya and Bandung follow closely with their expanding middle-class populations and increasing real estate developments, supported by strong residential and multi-family housing construction pipelines. These urban centers are pivotal in driving the demand for home improvement products and services, especially through modern retail formats, DIY stores, and online channels concentrated in these regions.
• In 2023, the Indonesian government implemented a regulation aimed at promoting sustainable building practices through energy-efficient and environmentally responsible construction. This regulation aligns with the Technical Guidelines for Green Buildings under the Minister of Public Works and Housing Regulation No. 02/PRT/M/2015 on Green Buildings and the broader implementation of energy conservation stipulated in the Government Regulation No. 70 of 2009 concerning Energy Conservation, which require certain new buildings and large-scale renovations to meet minimum energy performance standards, adopt efficient lighting and HVAC systems, and prioritize eco-friendly materials. The initiative is part of a broader strategy to reduce carbon emissions and promote sustainable urban development across the country, encouraging developers and homeowners to integrate green building materials, insulation, and efficient fixtures into home improvement projects.

Indonesia Home Improvement Market Segmentation

By Product Category:The product category segmentation includes various subsegments such as Paint, Wallpaper & Surface Finishes, Tools, Machines & Hardware, Building Materials (Lumber, Cement, Roofing, Insulation), Kitchen & Bathroom Improvements, Lighting, Electrical & Plumbing, Flooring & Floor Coverings, Lawn, Garden & Outdoor, Home Décor & Indoor Furnishings, and Repair & Replacement Services. Among these, Building Materials is the leading subsegment, driven by the ongoing construction boom, steady growth in residential and multi-family housing, and renovation activities across urban areas. The demand for quality building materials is fueled by both residential and commercial projects, and is increasingly influenced by demand for green-certified materials, energy-efficient insulation, and premium finishes, making it a critical component of the home improvement market.

By Project Type:The project type segmentation includes DIY (Do-It-Yourself) and DIFM (Do-It-For-Me / Contractor-led) categories. The DIY segment is gaining traction as more consumers engage in home improvement projects themselves, driven by the availability of online resources and tutorials, wider product availability in organized DIY chains, and growing comfort with e-commerce and digital inspiration platforms. However, the DIFM segment remains significant, particularly for larger projects that require professional expertise, structural work, or compliance with building and energy-efficiency regulations. This dual approach caters to varying consumer preferences and skill levels, ensuring a comprehensive market coverage and supporting both independent contractors and organized retail service offerings.

Indonesia Home Improvement Market Competitive Landscape

The Indonesia Home Improvement Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Ace Hardware Indonesia Tbk, PT Mitra Adiperkasa Tbk (MAP Group – Home & Lifestyle Formats), PT Depo Bangunan Indonesia, PT Catur Sentosa Adiprana Tbk (Mitra10, Atria), PT Inti Citra Agung (Depo Bangunan), PT Erajaya Swasembada Tbk (Erajaya Digital & Lifestyle – Smart Home), PT Summarecon Agung Tbk (Property-led Home Improvement Demand), PT United Tractors Pandu Engineering (Construction & Equipment), PT Semen Indonesia (Persero) Tbk, PT Indocement Tunggal Prakarsa Tbk, PT Holcim Indonesia Tbk (now PT Solusi Bangun Indonesia Tbk), PT Nippon Paint Indonesia, PT Avian Avia Paint Tbk, PT Jakflo Bangun Mas (Home Improvement Services), PT Tokopedia (GoTo Group – Online Home Improvement Marketplace) contribute to innovation, geographic expansion, and service delivery in this space, with expanding store networks, omnichannel strategies, and growing emphasis on private labels and value-added services.

Indonesia Home Improvement Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Indonesia's urban population is projected to reach 60% in future, up from approximately 57% in the most recent data available, according to the World Bank. This rapid urbanization drives demand for home improvement as urban dwellers seek to enhance living spaces. The urban housing sector is expected to see an investment of approximately IDR 1,200 trillion (USD 84 billion) in infrastructure and housing projects, further stimulating the home improvement market.
• Rising Disposable Income:The average disposable income in Indonesia is anticipated to increase from around IDR 4.5 million (approximately USD 285) per month to about IDR 5.2 million (approximately USD 330) per month in future. This rise in income allows consumers to allocate more funds towards home improvement projects. As a result, spending on home renovations and upgrades is expected to grow significantly, reflecting a shift towards higher-quality living environments.
• Expansion of E-commerce Platforms:E-commerce sales in Indonesia have exceeded the equivalent of IDR 500 trillion (USD 35 billion) in recent periods and are projected to continue growing in future, driven by increased internet penetration and smartphone usage. This growth facilitates easier access to home improvement products and services, allowing consumers to shop conveniently from home. The rise of online marketplaces is expected to enhance competition and drive innovation in the home improvement sector, benefiting consumers with better choices.

Market Challenges

• Supply Chain Disruptions:The Indonesian home improvement market faces significant supply chain challenges, exacerbated by global disruptions. These disruptions are primarily due to logistical issues and rising freight costs, which can hinder the timely availability of essential construction materials, ultimately affecting market growth.
• High Competition:The home improvement sector in Indonesia is characterized by intense competition, with numerous registered companies vying for market share. This saturation leads to price wars and reduced profit margins, making it challenging for new entrants to establish themselves. The need for differentiation and innovation remains critical to succeed in this competitive landscape.

Indonesia Home Improvement Market Future Outlook

The future of the Indonesia home improvement market appears promising, driven by ongoing urbanization and rising disposable incomes. As consumers increasingly prioritize home aesthetics and functionality, the demand for innovative and sustainable solutions is expected to grow. Additionally, the integration of smart home technologies will likely reshape consumer preferences, leading to a more tech-savvy market. Companies that adapt to these trends and invest in e-commerce capabilities will be well-positioned to capture emerging opportunities in this dynamic landscape.

Market Opportunities

• Sustainable Home Solutions:With a growing awareness of environmental issues, the demand for sustainable home improvement products is on the rise. The market for eco-friendly materials is expected to grow significantly, with an estimated value of IDR 100 trillion (USD 7 billion) by 2024, as consumers seek to reduce their carbon footprint and enhance energy efficiency in their homes.
• Smart Home Technologies:The smart home technology market in Indonesia is projected to reach IDR 50 trillion (USD 3.5 billion) in future. As consumers become more tech-savvy, the integration of smart devices into home improvement projects presents a lucrative opportunity for businesses. This trend is expected to drive innovation and create new revenue streams for companies that offer smart home solutions.