Dody Hanggodo Reveals 5 Government Infrastructure Priorities Through 2029
The Ministry of Public Works (PU) is preparing five main focuses for infrastructure development as a policy direction until 2 đoạn 2029. These five priorities are intended to support economic growth targets, equitable development, and the eradication of extreme poverty.
Minister of Public Works Dody Hanggodo stated that infrastructure development is no longer solely oriented towards the completion of physical projects, but must be capable of generating greater economic benefits. Therefore, every programme is now designed to be interconnected to ensure maximum impact.
“If we look at the government’s targets from the President until 2029, there are actually five infrastructure programmes that will serve as the main levers for economic growth and equitable development. First, water resource resilience through dams, irrigation, and the provision of raw water to support food self-sufficiency. Second, connectivity infrastructure through the construction of roads, bridges, and toll roads to ensure smoother public mobility and logistics,” Dody said during the CNBC Indonesia Economic Update on Friday (3/7/2026).
In addition to these two sectors, the government is also prioritising the development of basic residential infrastructure, such as the provision of drinking water, sanitation, and waste management. This sector is a priority as it directly relates to the quality of life of the community and supports the development of healthier cities.
“Thirdly, basic infrastructure for settlements such as drinking water, sanitation, and waste management. Fourthly, strategic infrastructure, ranging from public schools, educational facilities, and health facilities to religious facilities, focusing on building human resources towards Indonesia Emas 2045. Fifthly, financing innovation, because it is impossible for all development to be supported 100% by the State Budget (APBN), so we are inviting investment through the PPP (Public-Private Partnership) scheme,” he added.
The Ministry of Public Works has subsequently designed “Infracraft”, which refers to infrastructure development that is effective, efficient, and impactful on economic growth. This concept has been simplified into the “PU 608” programme, which serves as the ministry’s operational guideline. Through this concept, the Ministry of Public Works aims to increase the efficiency of infrastructure investment by lowering the Incremental Capital Output Ratio (ICOR).
“We are translating statecraft into infracraft—how to build infrastructure effectively, efficiently, and impactfully for the community. We then simplified this into PU 608. The number six represents the target for the infrastructure ICOR to fall below six, extreme poverty to be reduced to zero per cent, and from an infrastructure perspective, we want to help drive national economic growth to reach at least eight per cent by 2029,” he explained.
All projects currently undertaken must be interconnected so that the benefits do not stop at physical construction alone. He cited, for example, that the development of a drinking water supply system would not be optimal without the support of adequate roads, dams, or irrigation networks.
“I believe infrastructure development must be interconnected. If I build something worth one rupiah, the output should ideally not be just one rupiah, but ten rupiah through economic growth, poverty reduction, and other benefits. Therefore, starting from 2025, all our infrastructure development programmes will be connected to one another to ensure the benefits are truly maximised for the community,” Dody concluded.