Month: August 2025

Jakarta, 22 August 2025 – Since Indonesia’s proclamation of independence in 1945 until now, infrastructure has stood as the backbone of Indonesia’s economic growth, equitable development, and national integration.

The past eight decades have reflected a remarkable transformation. From the early years of independence, infrastructure development focused mainly on roads, bridges, dams, and irrigation to secure food resilience. The New Order era marked an acceleration of national road networks, power plants, and the first toll road—Jagorawi, officially inaugurated in 1978.

The Reformation Era then opened a new chapter, with greater private sector involvement through Public–Private Partnerships (PPP), in response to rising investment needs. Over the past decade, infrastructure has become a priority of the national agenda.

Over the past decade, the Government has successfully delivered 2,103 km of toll roads, 40 dams, 27 new airports, as well as other major projects such as railway lines and the development of Ibu Kota Nusantara (IKN). In addition, inter-regional connectivity has been strengthened through the construction of the Trans-Papua, Trans-Kalimantan, and Trans-Sumatra routes, designed to connect regions that had long remained isolated.

Infrastructure has brought tangible benefits to both the economy and public welfare. The construction sector is the fourth-largest contributor to Indonesia’s economy, accounting for 10.43 percent of national GDP in the fourth quarter of 2024.

In terms of energy access, the national electrification ratio reached 99.83% by the end of 2024, ensuring nearly all Indonesian households have electricity.

Furthermore, data from Statistics Indonesia (BPS) and Bappenas (2024) recorded that Indonesia has already achieved 62.5% of the Sustainable Development Goals (SDGs) indicators, far above the global achievement of only 17%.

Eight decades of infrastructure development in Indonesia reflect remarkable achievements, while also underscoring the vast financing needs that cannot be met by the government alone. 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 strategic partner to both government and private stakeholders in addressing Indonesia’s infrastructure financing challenges.

As of the end of 2024, IIF has contributed around IDR 42.5 trillion in financing for more than 150 strategic infrastructure projects across Indonesia. Its support spans transportation, energy, telecommunications, clean water, and other priority sectors. Notable achievements include:

• Energy: Power plant projects with a combined production capacity of 709.9 MW, reaching over 709,000 households or approximately 3.5 million people. These projects have also contributed to reducing greenhouse gas (GHG) emissions by 4.924 million tons of CO₂ equivalent annually, comparable to the emissions absorbed by 172,000 trees planted up to 2025.
• Transportation: Hundreds of kilometers of toll roads and strategic access routes.
• Clean Water: IIF-financed water supply projects have added 27,501 liters per second in clean water distribution capacity, serving approximately 1.39 million households or more than 6.78 million people across Indonesia.

• Healthcare: Development of healthcare facilities providing 1,051 inpatient beds and the capacity to serve more than 351,000 outpatients annually.

Chief Investment Officer of IIF, M. Ramadhan Harahap (Idhan), stated, “Indonesia’s 80th year of Independence is a moment to reflect on the nation’s long journey of development. Infrastructure has transformed Indonesia, from the limitations of the early independence era to the modern connectivity we see today. At IIF, we are proud to be part of this journey by financing projects that deliver real benefits across economic, social, and environmental dimensions.”

The 80th Anniversary of Indonesia’s Independence serves as a moment of reflection and a stepping stone toward Golden Indonesia 2045. With financing capacity firmly grounded in ESG principles, IIF will continue to play its role as a strategic partner for both the government and the private sector in building sustainable infrastructure across Indonesia.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (“IIF”) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on 15 January 2010 at the initiative of the Government of the Republic of Indonesia. Currently, the ownership of IIF is held by PT Sarana Multi Infrastruktur/SMI (Persero), Asian Development Bank (ADB), the International Finance Corporation (IFC) which is part of the World Bank, Deutsche Investitions-und Entwicklungsgesellschaft (DEG) which is fully owned by KfW, and Sumitomo Mitsui Banking Corporation (SMBC).

In its operations, IIF applies best practices based on international standards in providing credit, risk management, good corporate governance, and social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Further Queries:

Nastantio W. Hadi
Head of Legal and Corporate Secretary Division

PT Indonesia Infrastructure Finance
Telp: (021) 2991 5060;
Fax: (021) 2991 5061;
E-mail: [email protected]

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