Realizing An 8 Percent Growing Economy, RI Needs An Infrastructure Investment Of 650 Billion US Dollars

Coordinating Minister for GPA AHY (Photo: Theresia agatha/VOI)

JAKARTA - Indonesia is estimated to need an investment of US$650 billion for infrastructure development in order to achieve the 8 percent economic growth target. This development is mainly focused on priority programs, such as food, water and energy self-sufficiency.

Coordinating Minister for Regional Infrastructure and Development (IPK) Agus Harimurti Yudhoyono (AHY) said the figure was a projection from the Ministry of National Development Planning/Bappenas. Of this amount, around 190 billion US dollars are targeted to come from private investment.

"Indonesia needs about USD 650 billion in infrastructure investment to achieve the 8 percent economic growth target. Of that amount, around USD 190 billion must come from private capital," AHY said in his remarks at the Indonesia International Sustainability Forum (IISF) 2025 event at the Jakarta Convention Center, Friday, October 10.

AHY said the private investment target was much larger, which was about four times the previous government period. He emphasized that the entire development burden should not only be borne by the state budget.

Therefore, his party is building a financing ecosystem that combines public and private instruments, mobilizing endowment funds, involving multilateral partners and encouraging blended finance.

"However, investment will only flow if there is trust. Therefore, our focus is to ensure that the investment climate can be predicted, regulatory certainty and innovative financing models that dare to bear the initial risk while protecting the long-term public interest," he said.

"These principles explain why the Coordinating Ministry for Infrastructure and Regional Development is the host with this ISF. We believe collaboration is a true engine of sustainable growth, a key to better connectivity and strong coastal protection from natural disasters," he concluded.