Indonesia’s infrastructure investment could exceed US$291 billion by 2050, creating opportunities for private capital: PwC Indonesia

• Annual infrastructure spending is projected to rise from approximately US$117 billion in 2024 to US$291 billion by 2050.
• Transport is expected to remain the largest investment sector, while investment across power, digital, water, and social infrastructure is also projected to increase. 
• Greater private sector participation, innovative financing models, and stronger project delivery capabilities will be critical to support Indonesia Emas 2045 agenda.

Jakarta 31 August 2026 – Indonesia’s infrastructure needs are expected to expand significantly over the next 25 years, with annual investment projected to increase from approximately US$117 billion in 2024 to more than US$291 billion by 2050, according to PwC Indonesia’s Indonesia Infrastructure Outlook 2025–2050 published today.

The outlook builds on findings from PwC’s Global Infrastructure Outlook 2025–2050, which projects cumulative global infrastructure spending to reach US$151.1 trillion by 2050. Against this backdrop, Indonesia is expected to emerge as one of the region’s major infrastructure markets, driven by urbanisation, economic development, digital transformation, and growing demand for essential services.The report identifies five priority sectors that are expected to shape Indonesia’s next infrastructure cycle: transport, power, water, digital infrastructure, and social infrastructure. Together, these sectors will play a critical role in supporting the country’s long-term development agenda, including economic transformation, regional connectivity, energy transition, digital growth, and human capital development.

"Indonesia is entering a new phase of infrastructure development. Annual infrastructure investment is projected to increase from approximately US$117 billion in 2024 to more than US$291 billion by 2050, creating a US$5.4 trillion infrastructure opportunity over the period. Under a higher-growth scenario, annual investment requirements could reach approximately US$320 billion by 2050. Capturing this opportunity will require greater mobilisation of private capital, enhanced public-private collaboration, and more innovative financing approaches," said Agung Wiryawan, PwC Indonesia Infrastructure Leader. "The scale of investment required presents opportunities for investors while also supporting Indonesia’s long-term economic growth and development agenda."

Transport, power and water to lead Indonesia’s next infrastructure cycle

Transport is expected to remain Indonesia’s largest infrastructure investment opportunity, with annual spending projected to nearly triple from US$50.2 billion in 2024 to US$148 billion by 2050. Investment is expected to be driven by continued urbanisation, growing trade flows, and the need to strengthen connectivity across the archipelago through roads, ports, airports, and railway networks.

Meanwhile, the power sector is projected to grow from annual spending of US$5.7 billion in 2024 to  US$16.6 billion by 2050, reflecting increasing investment in renewable energy, grid modernisation, energy storage, and transmission infrastructure. Renewable energy deployment, electrification, and growing electricity demand from industrialisation, electric vehicles, and data centres are expected to be key growth drivers.

Water infrastructure investment is projected to increase from US$5.6 billion in 2024 to US$17.2 billion annually by 2050, driven by efforts to expand piped water access, reduce non-revenue water losses, and improve service reliability. The sector remains particularly important as Indonesia pursues its goal of achieving universal access to safe drinking water by 2045.

Digital infrastructure spending is projected to grow from US$3.2 billion in 2024 to US$5.0 billion by 2050, supported by increasing demand for cloud computing, AI applications, e-commerce, fintech, and digital public services. Investment in digital networks alone is expected to more than double from US$2.0 billion to US$4.1 billion, creating opportunities across fibre-optic networks, subsea cables, telecom towers, and next-generation connectivity infrastructure.

Social infrastructure is also projected to expand, with annual investment in healthcare and education infrastructure expected to grow from US$5.5 billion in 2024 to approximately US$15.2 billion by 2050, supporting Indonesia’s long-term human capital development agenda.

“The next phase of Indonesia’s infrastructure development will be shaped by a broader range of sectors than ever before. While transport will remain a major investment priority, growing demand for clean energy, digital connectivity, water security, healthcare, and education are expected to create investment opportunities for both the public and private sectors. Together, these sectors are expected to form the foundation for Indonesia’s long-term competitiveness and growth,” said Agung.

Private capital and stronger project delivery will be critical

As infrastructure needs continue to expand, financing will become an increasingly important consideration. The report highlights that achieving Indonesia’s long-term infrastructure goals will require broader capital mobilisation beyond traditional public funding sources. Greater participation from private investors, sovereign wealth funds, institutional investors, development finance institutions, and innovative financing vehicles will be vital in helping to bridge the infrastructure funding gap.

Public-private partnerships (PPPs) are expected to remain an important mechanism for unlocking private investment. While Indonesia’s PPP project pipeline has expanded significantly over recent years, the report notes that project preparation, bankability, risk-sharing arrangements, and regulatory coordination will remain key factors in ensuring successful project delivery.

The report also highlights the growing importance of integrated infrastructure planning. Future infrastructure systems will increasingly require coordinated planning, investment, and delivery to maximise economic productivity, strengthen resilience, and support sustainable development outcomes.

"In Indonesia’s next infrastructure phase, it’s not just about building more. It’s about delivering infrastructure that generates greater economic value, attracts long-term investment, and enhances quality of life," added Agung. "Success will depend on effective project planning, financing, and delivery, as well as collaboration between the government and private sector to unlock sustainable growth."

As Indonesia advances towards its Indonesia Emas 2045 vision, strengthening project execution, scaling innovative financing solutions, and developing infrastructure systems that are more connected, resilient, and future-ready will be critical to supporting long-term economic growth and enhancing national