Transportation Investment Opportunities in Indonesia

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The amount of investment required for the Indonesian transportation sector is projected to reach US$ 190 Billion. About half of the total investment is required for roads, while the other half is needed for financing the other transport sectors, namely railways, ports, airports, land transport, and urban transport, with the amount of investment ranged between US$ 20-37 Billion per year. State budget will not be sufficient to cover the overall infrastructure development, therefore, private participation through Public Private Partnership (PPP) scheme becomes essential to accelerate infrastructure funding. It is expected that 70% of the total budget required for transport infrastructure in the developing areas that are financially feasible should come from private sectors while the other 30% of state budget will be allocated to build transport infrastructures in remote areas that are economically viable.

In the next five years, infrastructure development under the PPP scheme has to be accelerated and multiplied. To realise it, the Government of Indonesia (GOI) has taken a series of major steps to refine the PPP policies and regulatory frameworks in order to improve the attractiveness and competitiveness of PPP programme.

This book is carefully prepared to provide the latest preview and information on transportation investment projects in Indonesia that we hope can be found useful as a reference to any stakeholders involved in transportation investment.

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