Indonesia Offers Japan 32 Strategic Projects to Chase 3.1% Growth in 2027
The Government of the Republic of Indonesia is offering 32 National Strategic Projects (PSN) to Japan. All of these projects have been prepared as attractive investment opportunities to support the acceleration of national infrastructure development. The ultimate aim is to pursue the economic growth target of 3.1% in 2027.
The Coordinating Ministry for Economic Affairs is seeking to maximise its partnership with Japan in the infrastructure sector. The Indonesia-Japan Infrastructure and Transportation Business Forum and Business Matching 2026 therefore serves as an important momentum to open new cooperation. It is hoped that the event will further strengthen communication and build more concrete trust ahead of the business forum in Tokyo.
Ferry Irawan, Deputy for Coordination of State-Owned Enterprise Management and Business Development at the Coordinating Ministry for Economic Affairs, stated that Indonesia-Japan cooperation in infrastructure is no longer merely an aspiration. It has now become a tangible track record that has driven Indonesia’s economy. “Ports, industrial estates, logistics, and urban transportation have all benefited from Japan’s technological contributions, financing, and engineering discipline,” he said on Tuesday (4/8/2026).
The Indonesian government is therefore offering 32 strategic investment projects from nine state-owned and regional-owned enterprises to Japan. The projects comprise the roads and toll roads sector as well as housing and township development and commercial property. There are also the railway and Transit-Oriented Development (TOD) sector, ports and logistics, and steel fabrication facilities.
Arifianto Sofiayanto, Director for East Asia at the Ministry of Foreign Affairs, said that Indonesia-Japan economic relations are very close and strategic. “This is reflected in President Prabowo Subianto’s visit to the Land of the Rising Sun, which resulted in new investment commitments of approximately USD 23.63 billion in March 2026,” he said.
Cahyo Purnomo, Director for Investment Promotion for East Asia, South Asia, the Middle East, and Africa at the Investment Coordinating Board (BKPM), echoed this view. He explained that Japan is one of the four largest investors in Indonesia, with an investment value of approximately USD 1.89 billion. “The government also 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,” he said.
Ferry Irawan further emphasised that Indonesia’s economic fundamentals remain resilient amid global uncertainty. In the first half of 2026, the national economy grew by 5.61% with a controlled year-on-year inflation rate of 3.34%. “Investment realisation also exceeded IDR 1,010 trillion,” he explained at the Indonesia-Japan Infrastructure and Transportation Business Forum and Business Matching 2026.
Ferry Irawan added that foreign investor confidence in Indonesia has also remained very strong entering the second half of 2026. This is reflected in the sovereign credit rating at BBB level with a stable outlook from S&P Global Ratings, as well as the JETRO FY2025 survey results showing that 69.1% of Japanese companies in Indonesia expect to post operating profits.
The Indonesian government continues to encourage productive investment that can boost productivity, accelerate technology transfer, and create quality jobs. All of this is aimed at achieving the national economic growth target of 3.1% in 2027 and 8% in 2029. “Let us turn this dialogue into partnership, partnership into projects, and projects into investment that creates sustainable added value for all our people,” concluded Ferry Irawan.