Jakarta (VNA) – Infrastructure development is identified as a key driver for sustainable economic growth in Indonesia as the country’s economy faces emerging challenges.
Indonesian Finance Minister Purbaya Yudhi Sadewa emphasised that amid increasing global economic uncertainties, strengthening development financing and multilateral cooperation is essential to ensuring sustainable growth. Infrastructure, he noted, not only stimulates production and business activities but also enhances the economy’s resilience to external shocks.
The Chief Executive Officer of Sarana Multi Infrastruktur (SMI), a state-owned enterprise under Indonesia’s Ministry of Finance, said the current challenge is no longer the size of available capital but the efficiency and impact of investment. According to him, infrastructure development in the coming period requires a shift from purely financing projects to generating measurable economic, social and environmental impacts.
In practice, infrastructure investment has played a crucial role in Indonesia’s economic expansion. Over the past two decades, SMI has committed around 275 trillion IDR (approximately 16.1 billion USD) in financing, supporting projects with a total value of 1,183 trillion IDR (about 69.3 billion USD). These projects have created jobs for more than 10 million workers and contributed roughly 0.5% to the country’s GDP.
Experts say infrastructure is also an important tool for narrowing development gaps between regions, which remain a major bottleneck for Indonesia’s economy. Investments in transport, energy and digital infrastructure are seen as essential foundations for boosting productivity and strengthening economic connectivity across the country.
However, to turn infrastructure into a sustainable growth engine, Indonesia needs a comprehensive set of solutions. These include innovating financing models, strengthening the role of development finance institutions such as SMI and expanding public–private partnership (PPP) schemes to mobilise greater resources from the private sector./.
