Indonesia Offers Japan 32 Strategic Projects to Chase 3.1% Growth in 2027

The Indonesian government is offering 32 National Strategic Projects (PSN) to Japan as part of an effort to attract investment and accelerate national infrastructure development, ultimately targeting 3.1% economic growth by 2027. The projects were presented during the Indonesia-Japan Infrastructure and Transportation Business Forum and Business Matching 2026. Ferry Irawan, Deputy for Coordination of State-Owned Enterprise Management and Development at the Coordinating Ministry for Economic Affairs, stated that the cooperation between Indonesia and Japan is not just an aspiration but a tangible reality that has moved the Indonesian economy. “Ports, industrial estates, logistics, and urban transportation have all benefited from Japanese technology, financing, and engineering discipline,” he said. The 32 strategic investment projects offered to Japan cover various sectors, including roads and toll roads, railways, ports and logistics, housing and township development, commercial property, Transit-Oriented Development (TOD), and steel fabrication facilities. These projects involve nine State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD). Arifianto Sofiayanto, Director of East Asian Affairs at the Ministry of Foreign Affairs, noted the deep and strategic economic relationship between the two nations, highlighted by President Prabowo Subianto’s visit to Japan which secured new investment commitments worth approximately USD 23.63 billion in March 2026. Cahyo Purnomo, Director of Regional Promotion for East Asia, South Asia, the Middle East, and Africa at the Indonesia Investment Coordinating Board (BKPM), added that Japan is one of the top four investors in Indonesia with a value of around USD 1.89 billion. He explained that the government continues to provide various investment facilities and incentives, including tax allowances, import duty exemptions, and super tax deductions, to enhance Indonesia’s attractiveness as an investment destination. Ferry Irawan further emphasised that Indonesia’s economic fundamentals remain robust amid global uncertainty, with national economic growth reaching 5.61% in the first half of 2026 and year-on-year inflation controlled at 3.34%. Realised investment also surpassed IDR 1,010 trillion. He noted that investor confidence remains strong, as reflected by S&P Global Ratings’ BBB rating with a stable outlook and a JETRO FY2025 survey showing 69.1% of Japanese companies in Indonesia expect to post operating profits. The government continues to encourage productive investment that boosts productivity, accelerates technology transfer, and creates quality jobs to achieve the national economic growth targets of 3.1% in 2027 and 8% in 2029.