Minister of Public Works Offers Nine Infrastructure Projects Worth $5.5 Billion to Global Investors
Main Takeaways
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JAKARTA, Investortrust.id — Indonesia’s Minister of Public Works Dody Hanggodo has offered nine high-priority infrastructure projects worth Rp 90 trillion ($5.5 billion) to international investors as part of efforts to close the country’s infrastructure financing gap.
Speaking at the International Conference on Infrastructure (ICI) 2025 held at the Jakarta International Convention Center, Minister Dody said the government’s fiscal capacity could only cover 60% of national infrastructure needs through 2026. The remainder, he said, must come from "smart and collaborative funding" involving the private sector.
“We are targeting Rp 90 trillion in financing for 2025–2026,” Dody said in his opening remarks. “The rest must come from innovative partnerships that share risks and opportunities.”
The nine projects presented form part of a broader pipeline of 55 public-private partnership (PPP) initiatives offered by the government. Delegations from six continents attended the ICI forum, signaling growing global interest in Indonesia’s infrastructure ambitions.
“Of the 55 PPP projects, we are ready to open nine of them today, worth a total of Rp 93 trillion, to serious investor participation,” Dody said.
Highlighted Projects Offered to Investors
Among the nine offerings are waste management facilities, toll roads, and renewable energy projects. Each project includes a preliminary assessment of capital expenditure (capex), internal rate of return (IRR), and net present value (NPV).
The projects, particularly the Bali toll road and West Java toll extensions, are expected to enhance connectivity in major tourism and industrial zones. Meanwhile, the small hydropower plants—classified as Pembangkit Listrik Tenaga Mikro Hidro (PLTMH)—represent Indonesia’s drive to scale up renewable energy in remote and rural regions.
Strategic Context
Indonesia's infrastructure gap remains a critical obstacle to economic growth. The government has estimated that it will need Rp 1,905 trillion ($117 billion) during the Prabowo administration to meet infrastructure targets—making PPPs an indispensable part of its financing strategy.
These projects are being prioritized not only for their economic returns but also for their alignment with Indonesia’s broader climate commitments and regional development plans.