Indonesian Political, Business & Finance News

Indonesia offers IDR 207 trillion infrastructure projects to Japan

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
Indonesia offers IDR 207 trillion infrastructure projects to Japan
Image: ANTARA_ID

Jakarta (ANTARA) - Indonesia has offered 32 strategic investment projects in the transportation and infrastructure sectors, valued at IDR 207.64 trillion, to Japanese investors through a business forum organised by the Indonesian Embassy in Tokyo in collaboration with the Coordinating Ministry for Economic Affairs.

Through the Indonesia–Japan Transportation and Infrastructure Business Forum and Business Matching 2026, held on 27–28 August, the government sought to connect Indonesian project owners with 50 representatives from 36 Japanese companies and institutions.

The Deputy Ambassador of Indonesia to Japan, Maria Renata Hutagalung, stated in a written briefing from the Indonesian Embassy in Tokyo on Tuesday that the investment cooperation between Indonesia and Japan, established over nearly seven decades, focuses not only on investment value but also on the quality and sustainability of the partnership.

Maria noted that the offered projects originate from nine State-Owned Enterprises (SOEs) and Regional State-Owned Enterprises (BUMDs), with an indicative investment value of IDR 207.64 trillion.

The proposed projects include 12 road and motorway projects, 10 property and residential area development projects, six railway and Transit-Oriented Development (TOD) projects, as well as two projects each for ports, logistics, and steel fabrication facilities.

Approximately three-quarters of the offered projects are brownfield projects, consisting of operational assets, expansion plans, divestments, and asset recycling opportunities. These projects possess operational track records and revenue histories that can serve as considerations for potential investors.

Maria explained that the partnership with Japan is tangible, evidenced by infrastructure used daily by the Indonesian public, such as the Jakarta MRT and Patimban Port.

“What distinguishes Japanese investment in Indonesia is that it is never solely about value, but rather the quality of engineering, discipline in project completion, technology and expertise transfer to the Indonesian workforce, and a willingness to partner for the long term,” said Maria.

She explained that the Indonesian government provides several forms of support for Japanese investors, including guarantees and risk-sharing through PT Penjaminan Infrastuesruktur Indonesia (PII), long-term financing by PT Sarana Multi Infrastruktur (SMI), and integrated licensing through the Online Single Submission system.

The government also provides tax holiday and tax allowance facilities, as well as support for workforce skill development through vocational education and super deduction facilities for training costs.

Furthermore, the offered cooperation schemes are diverse, ranging from divestment, joint ventures, Public-Private Partnerships (PPP) or concessions, and long-term leases, to other schemes tailored to the specific characteristics of each project.

The enthusiasm of Japanese investors was evident from the presence of 50 representatives from 36 companies and institutions, including Toyota Tsusho, Sumitomo Corporation, Obayashi, Shimizu, Penta-Ocean, Tokyu, JR East, Tokyo Metro, Mitsubishi Electric, Mizuho Bank, SMBC, JICA, and JETRO.

The Deputy for Coordination of Management and Development of SOEs at the Coordinating Ministry for Economic Affairs, Ferry Irawan, informed forum participants that Indonesia’s economic fundamentals remain strong amidst global uncertainty.

Ferry noted that in the first semester of 2026, the Indonesian economy grew by 5.61 per cent, with inflation recorded at 3.34 per cent annually, while realised investment has exceeded IDR 1,010 trillion.

The forum series continued with business matching between Indonesian project owners and potential Japanese partners. The Indonesian Embassy in Tokyo stated it stands ready to assist potential investors throughout the exploration process and into the follow-up of cooperation.

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