This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Memacu ekonomi lewat proyek
12 June 2025
By Allfian Asmaaysi and M. Ryan Hidayatullah
Infrastructure development remains a cornerstone of President Prabowo Subianto’s strategy to drive annual economic growth of 8 percent. It will not be funded solely by the State Budget (APBN); the government is also engaging the private sector to support large-scale infrastructure initiatives.
The government's commitment to involving both domestic and foreign private investors was evident at the 2025 International Conference on Infrastructure (ICI).
Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, introduced dozens of projects aimed at stimulating local economies to investors from 33 countries. “Investment plays a crucial role in infrastructure. Infrastructure reduces logistics costs and improves productivity,” he said during the ICI 2025 opening at the Jakarta International Convention Center (JICC) on Wednesday, 11 June.
He stressed that infrastructure is a key enabler of President Prabowo Subianto’s programmes, particularly in strengthening food security. However, Agus also emphasised the importance of planning infrastructure development carefully and strategically to avoid cost overruns that could hamper economic growth.
“If we build wisely, with careful consideration, we can achieve not just high growth, but also long-term sustainability,” Agus stated.
Beyond private sector participation, the investment management agency Danantara is expected to take part in financing infrastructure. Danantara currently manages assets linked to more than 800 state-owned enterprises (SOEs). “I have had close discussions with Danantara leadership, including Mr. Rosan and his team. We hope for strong collaboration,” he added.
Deputy for Basic Infrastructure Coordination at the Coordinating Ministry for Infrastructure and Regional Development, Rachmat Kaimuddin, revealed that 46 projects valued at Rp200 trillion have been opened for investment.
These projects are available under various investment schemes, including Public-Private Partnership (PPP). “It is important to remember these projects have strong private sector involvement,” he stressed.
In the same forum, Minister of Public Works, Dody Hanggodo, presented the Giant Sea Wall project, located along the northern coast of Java, to potential investors.
Dody explained the Giant Sea Wall is a national priority aimed at protecting coastal areas from tidal flooding and erosion. “This project opens the door to long-term investment and integrated climate resilience,” he said.
To date, the project has been a topic of serious discussion between President Prabowo Subianto and his cabinet. According to Cabinet Secretary Teddy Indra Wijaya, the initiative forms part of the government’s strategy to address climate change and sea-level rise in coastal regions.
Designed to serve multiple functions, the Giant Sea Wall will not only protect the coastline from abrasion and tidal floods but also act as a clean water reserve for drought-prone coastal areas.
The government hopes the project will deliver substantial benefits to northern coastal communities, particularly by reducing climate-related disaster risks.
In addition to the Giant Sea Wall, Minister Dody also introduced nine infrastructure projects from the Public Works Ministry with a total investment value of Rp90.21 trillion during ICI 2025.
He explained that these financing needs are being offered through PPP investment schemes.
“Between 2025 and 2026, our target is to secure Rp90 trillion in funding. Since the government’s fiscal capacity only covers 60 percent, the remainder must come from innovative and collaborative financing,” said Dody.
He disclosed that the nine projects include three road development projects requiring Rp87.65 trillion, five water resilience projects worth Rp657.18 billion, and a waste-to-energy project valued at Rp1.9 trillion.
The current estimated total infrastructure funding requirement stands at Rp1,905.3 trillion, with 35.63 percent to be covered by the APBN, or Rp678.9 trillion.
Meanwhile, 24.87 percent, or Rp473.28 trillion, is expected to be sourced from regional budgets (APBD).
On a related note, Deputy Minister of Transportation, Suntana, stated that the extension of Jakarta’s Mass Rapid Transit (MRT) line from Lebak Bulus to South Tangerang is currently under review.
The Ministry of Transportation is still conducting an evaluation of the detailed engineering design (DED), particularly regarding the technical systems to be adopted for the new MRT route.
Next article: Waste-to-energy-plant: Jakarta has not given up
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