JAKARTA - Commemorating the 80th anniversary of the independence of the Republic of Indonesia, from the proclamation of 1945 to 2025, infrastructure has become the backbone of economic growth, equitable development, and national integration.
The last eight decades have shown extraordinary transformation. In the early days of independence, infrastructure development focused on roads, bridges, dams, and irrigation to support food security. The New Order era marked the acceleration of national road construction, power plants, and the first toll road, Jagorawi, which was inaugurated in 1978.
The Reformation Era then opened a new chapter with the involvement of the private sector through the Government and Business Entity Cooperation (KPBU) scheme, as investment needs increased. In the past decade, infrastructure has become a national priority agenda.
Over the past 10 years, the Government itself has succeeded in realizing 2,103 km of toll roads, 40 dams, 27 new airports, and other major projects such as the railway line and the capital city of the archipelago (IKN). Not only that, connectivity between regions is strengthened by the construction of Trans-Papua, Trans-Kalimantan, and Trans-Sumatra lines, which are designed to connect isolated areas.
Infrastructure development brings tangible benefits to the economy and people's welfare. The contribution of the construction sector in the Indonesian economy is in fourth place as seen from the percentage of the construction sector in Indonesia's Gross Domestic Product (GDP) of 10.43 percent in the fourth quarter of 2024.
In terms of electrical energy, the national electrification ratio has now reached 99.83 percent by the end of 2024, so that almost all Indonesian households have access to electricity.
In addition, data from the Central Statistics and Bappenas Agency (2024) noted that Indonesia has reached 62.5 percent of the target indicator for the Sustainable Development Target/SDGs, far above the global achievement of 17 percent.
Eight decades of Indonesia's infrastructure development has shown great achievements, as well as emphasized the large amount of financing needs that the government itself cannot meet. This is where the role of the private sector and infrastructure financing institutions becomes crucial.
Since its establishment in 2010, PT Indonesia Infrastructure Finance (IIF) has become a strategic partner for the government and the private sector in responding to the challenges of infrastructure project funding.
By the end of 2024, IIF has contributed to channeling around IDR 42.5 trillion in financing for more than 150 strategic infrastructure projects. This support includes the transportation, energy, telecommunications, clean water and other priority sectors. Some of the latest major achievements include:
The renewable energy project with an installed capacity of nearly 700 MWh per year, powers more than 693,000 households and the potential for greenhouse gas emission avoidance of 4.81 million tons of CO2 per year. Seven drinking water projects that provide safe and drinking access to water for more than 6.7 million people. How about the construction of medical facilities with a capacity of more than 1,000 beds, serving hundreds of thousands of patients every year.
Chief Investment Officer IIF, M. Ramadhan Harahap (Idhan), said that the momentum of 80 years of independence is the time to reflect on the long journey of land development.
"Infrastructure has changed Indonesia's face, from limitations in the early days of independence to modern connectivity today. IIF is proud to be a part of this journey by supporting the financing of projects that provide tangible benefits, both from economic, social and environmental aspects," he said, in a written statement, Friday, August 22.
The 80th Indonesian Dirgahayu is a reflection point and a foothold towards Indonesia Gold 2045. With the financing capacity that adheres to ESG principles, IIF will continue to play a strategic partner for the government and the private sector in building sustainable Indonesian infrastructure.
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