The Indonesian government has released its comprehensive infrastructure development plan for 2025-2030, outlining projects valued at $327 billion across transportation, energy, water resources, and urban development sectors. ProSpace Indonesia’s Infrastructure Investment Report analyzes the ambitious pipeline that aims to accelerate economic growth and reduce regional disparities.
Transportation infrastructure dominates the plan, accounting for 43% of projected investments. This includes 2,840 kilometers of new highways, 3,750 kilometers of railway expansions, 15 new airports, and major port developments across the archipelago. Eastern Indonesia receives particular attention, with 35% of transportation allocations directed to previously underserved regions.
“This pipeline represents Indonesia’s most ambitious and comprehensive infrastructure planning cycle to date,” notes Irawan Soedjono, Infrastructure Policy Expert at ProSpace. “The balance between economic corridors and inclusive development creates a framework that addresses both growth and equity objectives.”
Public-private partnerships are expected to fund approximately 38% of the total investment, with the remainder coming from state budgets, state-owned enterprises, and international development financing. The government has established a dedicated project preparation facility to ensure projects meet bankability requirements.
Climate resilience features prominently in the planning guidelines, with all major projects requiring adaptation and mitigation elements. Meanwhile, local content requirements aim to maximize economic benefits for Indonesian suppliers and contractors.
Implementation challenges include land acquisition processes and coordination between central and regional governments, issues addressed through recent regulatory reforms.
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