Indonesia Infrastructure Development

Government Seeks Greater Private Sector Role in Infrastructure Development​


Celvin Moniaga Sipahutar

January 16, 2025 | 11:31 pm


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42 kilometer LRT built by SOE Consortium



Jakarta. President Prabowo Subianto on Thursday called for increased private sector involvement in Indonesia’s infrastructure development, signaling a shift from the state-owned enterprises' dominance under the previous administration of President Joko Widodo.


Prabowo said his administration has no intention of slowing the pace of development but aims to expand the private sector's role in managing infrastructure projects.


“I want to give the private sector a bigger role. Some have said I’m halting infrastructure projects, but that’s not true. I’m simply adjusting the policy to allow the private sector to take the lead in most projects,” Prabowo said during a gathering with the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta.


He highlighted the private sector's ability to bring innovation and efficiency to large-scale projects, particularly those with strict timelines.


“I’ve said many times that the government will focus only on vital projects directly related to public welfare and livelihoods. Everything else that can be managed by the private sector will be entrusted to them,” he added.


Under President Joko Widodo, Indonesia’s state budget allocated significant funds to infrastructure development, reaching a record Rp 423.4 trillion ($25.9 billion) in 2024.


For 2025, the infrastructure budget stands at Rp 400 trillion.

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Government Seeks Greater Private Sector Role in Infrastructure Development

Prabowo said his administration has no intention of slowing the pace of development but aims to expand the private sector's role.
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When it comes to private sector infrastructure construction companies, we have several big ones like Astra Infra, Bakrie Infra, and Bukaka

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For Greater Jakarta region, PT Jaya Pembangunan (Jaya Infrastructure) majority owned by Jakarta local government is pretty dominant player in Greater Jakarta development

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Central Java, Jogjakarta - Solo Toll Road (Highway)

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Qatari Investor to Invest at Least $16 Billion in Indonesia’s Housing Projects​


Erfan Maruf
January 20, 2025 | 6:25 pm

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Jakarta. A Qatari investor has committed to investing at least $16 billion in the construction of 1 million residential units in Indonesia, Hashim Djojohadikusumo, head of the National Housing Task Force and younger brother of President Prabowo Subianto, announced on Monday.


Hashim said Sheikh Abdul Aziz Al Thani plans to allocate between $16,000 and $20,000 for each residential unit.


“If we multiply that by 1 million, the total investment would amount to between $16 billion and $20 billion,” Hashim said during a press briefing at the Housing Ministry office in Jakarta.


The investment pledge follows a recent meeting between the Qatari investor and President Prabowo Subianto at the State Palace, during which a memorandum of understanding was signed to support the ambitious project.


Hashim suggested that the project will focus on constructing apartments in urban areas rather than traditional landed houses, to better meet the needs of city dwellers.


State-Owned Enterprise Minister Erick Thohir added that the government will utilize underutilized land managed by state-owned companies to support the project.


“We may use urban land owned by state companies, such as Kereta Api Indonesia (KAI), PTPP, and Perumnas, that is not essential to their business operations,” Erick said.

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Qatari Investor to Invest at Least $16 Billion in Indonesia’s Housing Projects

Hashim said Sheikh Abdul Aziz Al Thani plans to allocate between $16,000 and $20,000 for each residential unit.
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Central Java.

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Sumatra Island

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Indonesia Opens $12.3 Billion in Infrastructure Projects to Global Investors​


Erfan Maruf


June 12, 2025 | 3:09 am


1749736853130.webp
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono, center, opens the Indonesia Conference on Infrastructure at the Jakarta International Convention Center, Wednesday, June 11, 2025. (Antara Photo/Dhemas Reviyanto)



Jakarta. The Indonesian government is inviting global investors to participate in national infrastructure projects worth approximately Rp 200 trillion ($12.3 billion), with opportunities spanning sectors such as roads, housing, food, and renewable energy.


Speaking at the Indonesia Conference on Infrastructure 2025 on Wednesday, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono underlined that the government is looking for long-term partners in development -- not just capital contributors.

capital contributors.


Read More:​

Indonesia Faces $46 Billion Infrastructure Funding Gap Through 2029


“We welcome global investors not only for financial gain but as collaborators in driving Indonesia’s long-term transformation,” Agus said at the opening of the two-day event, held at the Jakarta International Convention Center.

A total of 46 projects are being offered for investment, including major toll road developments:

  • Gilimanuk–Mengwi Toll Road (Rp 25.4 trillion)
  • Pejagan–Cilacap Toll Road (Rp 27.59 trillion)
  • Sentul Selatan–Karawang Barat Toll Road (Rp 34.75 trillion)

Also on offer is the Manggar Integrated Waste Processing Facility (TPST) in Balikpapan, valued at $115.31 million.


In the clean energy sector, investment is sought for several mini-hydro power plants:

  • Tapin Dam: $5 million
  • Leuwikeris Dam: $16 million
  • Cipanas Dam: $4.81 million
  • Karalloe Dam: $7.94 million

“Indonesia’s future energy must be secure and sustainable,” Agus added. “As demand grows with the rise of electric vehicles, industry, and digitalization, we must prepare resilient energy infrastructure.”


Deputy Coordinating Minister for Basic Infrastructure Rachmat Kaimuddin said the conference serves as a platform for matchmaking between project developers and potential investors from both the public and private sectors.

“We’ve prepared a curated list of investment-ready projects worth around Rp 200 trillion. This list will be published on our official website, and we’re providing dedicated spaces for one-on-one discussions between project owners and interested investors,” Rachmat said.


The conference highlights five major themes: basic urban infrastructure, connectivity infrastructure, housing and area development, climate-resilient infrastructure, and infrastructure financing.


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Indonesia Opens $12.3 Billion in Infrastructure Projects to Global Investors

A total of 46 projects are being offered for investment, including major toll road developments.
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Sri Mulyani: Government Can Only Fund 40% of $625B Infrastructure Needs​



Arnoldus Kristianus

June 12, 2025 | 7:03 pm

1749821594111.webp
Finance Minister Sri Mulyani Indrawati speaks at the International Conference on Infrastructure at the Jakarta International Convention Center, Thursday, June 12, 2025. (Antara Photo/Dhemas Reviyanto)


Jakarta. Indonesia will require approximately $625 billion (Rp 10,000 trillion) to finance its national infrastructure development through 2029, Finance Minister Sri Mulyani Indrawati said on Thursday, highlighting a significant funding gap that must be bridged through private sector and international participation.


Speaking at the International Conference on Infrastructure at the Jakarta International Convention Center, Sri Mulyani underlined the government’s commitment to delivering basic infrastructure that is accessible, inclusive, and equitable across the archipelago.

“The central and regional governments can only cover around 40 percent of the total infrastructure financing needs, leaving a shortfall of approximately Rp 6,000 trillion,” she said.

“This gap will require private sector participation, strong partnerships, and innovative financing strategies,” she added.


The minister stressed that infrastructure development must go beyond physical connectivity and serve as a tool to reduce inequality between both regions and communities.


“Infrastructure must be inclusive, climate-resilient, and environmentally responsible, while supporting our broader sustainable development goals,” she noted.

Sri Mulyani said sustainability remains at the core of Indonesia’s infrastructure financing framework. Since 2022, the government has applied an Environmental, Social, and Governance (ESG) framework to guide private investment in public infrastructure.


To reassure investors, she highlighted the role of the Indonesia Infrastructure Guarantee Fund (IIGF), which provides risk mitigation and security for infrastructure investments.


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Sri Mulyani: Government Can Only Fund 40% of $625B Infrastructure Needs

“This gap will require private sector participation, strong partnerships, and innovative financing strategies,” she said.
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More road being built, it is in Central Java

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Oasis Central Sudirman

This 331 and 276 meter buildings will likely be pretty iconic if completed.

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New MRT Corridor to Cost Rp 50 Trillion, Connect East and West Jakarta​




Erfan Maruf

July 10, 2025 | 9:45 pm

1752241210736.jpeg
FILE - The aerial photo shows the ongoing project of a mass rapid transit (MRT) rail along Gajah Mada street in Jakarta on January 19, 2023. (B Universe Photo/Joanito De Saojoao)



Jakarta. The ambitious expansion of Jakarta’s Mass Rapid Transit (MRT) system will require at least Rp 50 trillion (approximately $3 billion), according to the operator PT MRT Jakarta.


The new phase will introduce an east-west line stretching 24.5 kilometers from Medan Satria in East Jakarta to Tomang in West Jakarta. The route will feature 21 stations and a train depot, said Weni Maulina, MRT Jakarta’s Director of Construction, during a press briefing on Thursday.


An open international tender is slated to be launched in October or November, Weni said, with funding secured from Japanese lenders.


“Japanese companies are likely to participate, but they must partner with local Indonesian contractors,” she added.

The bidding process is expected to conclude within a year, paving the way for a groundbreaking ceremony in 2026, starting near the Kwitang area. Preparatory work is already underway, including land clearance, utility relocation, and other early-stage development efforts.

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Northbound extension of the MRT line

Meanwhile, the northbound extension of the MRT line -- connecting Hotel Indonesia Roundabout to Kota -- is now halfway completed. This 6-kilometer segment, budgeted at Rp 12 trillion ($739 million), is scheduled for completion by 2029.

MRT Jakarta claims the existing line has significantly improved urban mobility and environmental conditions in the capital.


“Jakarta’s traffic congestion index is now lower than Bandung’s,” said Mega Tarigan, Director of Operations, citing independent research.


According to Mega, the MRT system helped prevent Rp 2.2 trillion in environmental damage and saved Rp 1.9 trillion in travel time across the city's most congested areas.


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New MRT Corridor to Cost Rp 50 Trillion, Connect East and West Jakarta

An open international tender is slated to be launched in October or November with funding secured from Japanese lenders.
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Evolution of Jakarta MRT 2019-2040​


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Evolution of LRT Jakarta and LRT Jabodebek 2019-2040​

 

Indonesia Enlists Military to Speed Up Trans Papua Road Project​


Erfan Maruf

July 22, 2025 | 10:11 am

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A small city in Papua


Jakarta. Indonesia has deployed its military to help accelerate the long-delayed Trans Papua Road project, which has faced persistent setbacks due to security threats from armed groups in the region.


The partnership between the Public Works Ministry and the Indonesian Military (TNI) aims to complete the 4,330-kilometer road, which has been under construction since 2014 but has connected only 3,446 kilometers to date.


Major General Kristomei Sianturi, head of the TNI Information Center, said the main obstacle to the project’s completion is the threat posed by armed criminal groups (KKB), citing deadly attacks on construction workers, including the Istaka Karya case in 2018 that resulted in 19 casualties.


“The main challenge in developing the Trans Papua Road is security. It’s been widely reported, like in the Istaka Karya incident that led to deaths,” Kristomei said on Monday.

“Those who have the capability to ensure security are the TNI, working with the Public Works Ministry and others,” he added.


Read More:​

VP Gibran Says He’s Ready to Work from Papua if Ordered by Prabowo


The Trans Papua Road project is backed by Presidential Instruction No. 9 of 2020 on accelerating welfare development in Papua and West Papua, issued under former President Joko Widodo. The government now aims to complete the project under President Prabowo Subianto’s administration.


Director General of Highways at the Public Works Ministry, Roy Rizali Anwar, said the TNI’s support will focus on building access roads in underdeveloped, frontier, and outermost areas, including Papua and Kalimantan.


“Construction will target 11 priority locations. We will conduct surveys, calculate the budget needs, and allocate funding through the state budget according to the country’s financial capacity,” Roy said.


In the first quarter of 2024, the consortium of state-owned Hutama Karya and Hutama Karya Infrastruktur won the tender for the Trans Papua Road’s Jayapura–Wamena route, specifically the 50-kilometer Mamberamo–Elelim segment in Papua Highlands Province. The project will be executed under a Public-Private Partnership (PPP) scheme.


Hutama Karya Executive Vice President Adjib Al Hakim said the project, which has been under study since September 2022, will require a capital expenditure of Rp 3.3 trillion. The concession period will span 15 years, including two years of construction and 13 years of maintenance.

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Indonesia Enlists Military to Speed Up Trans Papua Road Project

Indonesia is deploying its military to help complete the delayed Trans Papua Road project, which has faced setbacks due to security threats.
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Greater Bandung LRT Project Gets French Support​



Erfan Maruf

August 2, 2025 | 10:45 am

1754199819232.webp
Transportation Minister Dudy Purwagandhi (right) and French Transport Minister Philippe Tabarot (left) agree to strengthen transport cooperation, including the development of an LRT project in Bandung, West Java. The agreement was announced on Friday, Aug. 1, 2025. (Courtesy of the Transportation Ministry)



Jakarta. Indonesia and France have agreed to jointly develop a light rail transit (LRT) project in Greater Bandung, West Java, as part of a broader partnership to strengthen transportation cooperation between the two countries.


The agreement was announced by Transportation Minister Dudy Purwagandhi after meeting with his French counterpart, Philippe Tabarot, in Paris as part of the 75th anniversary of diplomatic relations between the two countries.


“This partnership will cover knowledge exchange, technology transfer, and direct involvement of companies from both nations,” Dudy said in a statement on Friday.


The collaboration builds on the momentum from French President Emmanuel Macron’s visit to Jakarta in May and President Prabowo Subianto’s trip to Paris during Bastille Day celebrations on July 14.

The Greater Bandung LRT will connect urban areas in Bandung to the Whoosh high-speed train station in Tegalluar. The system is expected to ease traffic congestion and enhance intermodal transport integration.


According to the West Java Transportation Agency, the project will begin with two priority corridors: Tegalluar–Leuwipanjang and Leuwipanjang–Babakan Siliwangi. The total development cost is estimated at Rp 26 trillion ($1.6 billion), which includes supporting infrastructure. Construction is targeted to begin in 2027.


“This collaboration is a tangible step toward a modern, sustainable mass transit system. The Bandung LRT is expected to significantly improve urban mobility in the region,” Dudy said.


Beyond the LRT, Indonesia and France have also committed to expanding cooperation in the maritime and civil aviation sectors. These include efforts to boost shipping safety, port management, and aviation technology transfer.


To oversee and implement the initiatives, both governments will form a joint working group tasked with drafting an action plan and identifying priority projects.


French Transport Minister Philippe Tabarot said he viewed Indonesia as a strategic partner and described the Bandung LRT project as a starting point for a mutually beneficial collaboration.


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Greater Bandung LRT Project Gets French Support

Indonesia and France have agreed to jointly develop a light rail transit (LRT) project in Greater Bandung
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Jakarta - Bandung HSR is currently under study for extension to Surabaya in East Java.

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