The Government of Indonesia will require IDR10,303 trillion (USD617 billion) in infrastructure investment between 2025 and 2029 to support its target of achieving 8 per cent economic growth, according to the Coordinating Ministry for Infrastructure and Regional Development. The funding requirement is 66 per cent higher than the IDR6,203 trillion invested in infrastructure between 2014 and 2024.
The government is expected to contribute IDR7,212 trillion, while the private sector is projected to provide IDR3,091 trillion, or around IDR618 trillion annually. To meet the target, annual infrastructure investment must triple compared with the 2019–2024 period. State budget funding alone will be insufficient, requiring greater reliance on private capital and alternative financing mechanisms.
As of January to September 2025, construction has not ranked among the top five sectors for realised investment, with inflows below IDR105.2 trillion. This shortfall underscores the challenge of scaling private participation, especially as infrastructure is expected to account for 32.4 per cent of Indonesia’s national investment target for 2025, set at IDR1,905.6 trillion.