[Indonesian News] Government Launches 55 Infrastructure Projects for the Private Sector
I. The Government Launches 55 Infrastructure Projects for the Private Sector
The Ministry of Public Works (PU) plans to launch 55 infrastructure projects under the Government–Private Partnership (KPBU/PPP) model, aiming to raise IDR 651.46 trillion in financing to cover 34.19% of the USD 117.18 billion infrastructure funding gap identified in the 2025–2029 National Medium-Term Development Plan.
The total funding requirement amounts to IDR 1,900 quadrillion (USD 117.18 billion), of which the government can only cover 60%—approximately IDR 678.91 quadrillion in central funds plus IDR 473.28 quadrillion in local funds—leaving the remaining 40% to be financed through diversified sources. Under the KPBU/PPP model, financing accounts for 34.19% (IDR 651.46 quadrillion), while an additional 5.34% (IDR 101.65 quadrillion) represents the funding gap.
The project categories include water resources projects (24 in total): 16 are in the transaction phase, 8 are in the preparation stage, with a targeted financing of IDR 160.62 trillion; road projects (19 in total): 14 are in the Ministry of Finance’s preparation phase, 5 are under implementation, with a targeted financing of IDR 448.88 trillion; and regional planning projects (12 in total): 11 are in the transaction phase, 1 is in the preparation stage, with a targeted financing of IDR 42.04 trillion. The Ministry of Public Works emphasizes that these projects not only focus on infrastructure development but also place great emphasis on generating sustainable social benefits.
Reprinted from: Daily Indonesia
II. As of September, Indonesia’s realized investment reached IDR 1,434.3 trillion.
The Minister of Investment and Downstream Development recently reported that, as of September 2025, Indonesia’s realized investment totaled IDR 1,434.3 trillion, up 13.7% year on year and representing 75.3% of the full-year target. These investments have created 1.956 million jobs. Of this total, IDR 741.8 trillion was realized outside Java (51.7%), while IDR 692.5 trillion was realized on Java (48.3%).
Domestic investment (PMDN) totaled IDR 789.7 trillion, accounting for 55.1%, while foreign investment (PMA) amounted to IDR 644.6 trillion, representing 44.9%. The main investment destinations included West Java at IDR 218.2 trillion (15.2%), Jakarta at IDR 204.2 trillion (14.2%), and East Java at IDR 105.1 trillion (7.3%).
The main sources of foreign investment include Singapore at USD 12.6 billion, Hong Kong, China at USD 7.3 billion, and mainland China at USD 5.4 billion. Key investment sectors comprise basic metals, metal products, and equipment manufacturing, with an investment of IDR 196.4 trillion (13.7%); transportation, warehousing, and telecommunications, with IDR 163.3 trillion (11.4%); and mining, with IDR 158.1 trillion (11%).
Reprinted from: Daily Indonesia
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