Indonesia faces a massive funding gap in its bid to develop infrastructure by 2029, requiring a total of US$625.37 billion (Rp10,154 trillion) to meet national development goals, said Minister of Finance Sri Mulyani Indrawati.
Addressing the International Conference on Infrastructure on Thursday, June 12, Sri Mulyani revealed that only 40 percent of the needed funds can be covered through central and regional government budgets combined. Specifically, the State Budget (APBN) is projected to finance only 23 percent of the total, or around US$143.84 billion (Rp2,336 trillion), while regional administrations are expected to contribute 17 percent, equivalent to US$106.31 billion (Rp1,725 trillion).
Given Indonesia’s diverse geography and social landscape, expanding infrastructure connectivity is essential to ensure equitable access to basic services, she noted.
To bridge the gap, the government is calling for greater participation from the private sector and state-owned enterprises (SOEs), each expected to contribute 30 percent, or about US$187.61 billion (Rp3,045 trillion) over the next five years.
“The infrastructure funding needs are significant, and this also depends on global economic conditions,” Sri Mulyani said. “As we all know, today’s world is marked by geopolitical tensions, fragmentation, and instability that affect many countries and regions.”
In response to these challenges, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) pointed to the State Invesment Management Agency Daya Anagata Nusantara (BPI Danantara) as a key instrument in closing the infrastructure financing gap.
“Danantara plays a highly strategic role, as envisioned by President Prabowo Subianto,” AHY said. “It has consolidated over 800 state-owned enterprises, acting not only as a shareholder but also as an active investor.”
AHY emphasized that Danantara is well-positioned to initiate innovative financing mechanisms, independent of the central and regional budgets. To that end, he pledged that the government will identify and catalogue priority infrastructure projects that could be offered to Danantara as investment opportunities.
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