The Government of Indonesia has launched the Infrastructure Project Facilitation Office (IPFO) under the Coordinating Ministry for Infrastructure and Regional Development to enhance private sector participation in national infrastructure projects. The initiative aims to streamline investment processes, bridge coordination between government agencies and investors, and promote public–private partnerships (PPPs).
The IPFO will function as a centralized platform assisting investors and project owners in addressing regulatory procedures, prioritizing projects, and expediting implementation. It will also coordinate with PT Sarana Multi Infrastruktur (SMI) and PT Penjaminan Infrastruktur Indonesia (PII) to provide standardised project documentation and risk mitigation frameworks.
According to the National Development Planning Agency (Bappenas), Indonesia’s infrastructure investment needs for 2025–2029 total USD643.8 billion (IDR10,300 trillion), with the private sector currently contributing only 28 per cent. The IPFO is expected to close this funding gap through innovative financing schemes such as land value capture, asset recycling, and limited concession models.