Indonesia infrastructure development strategy

Under the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, Indonesia is shifting its infrastructure strategy toward completing existing projects rather than pursuing aggressive new expansions. The Toll Road Regulatory Agency (BPJT) indicated a priority on resolving issues with unfinished contracted projects, particularly regarding the integration of the Sumatra toll network connecting Aceh to Bakauheni.

To address national logistics costs, which were 14.29% of GDP in 2022, the government aims to reach a target of 12.5% by 2029. Experts note that efficiency must consider total trip expenses, such as fuel and wages, as high tariffs on certain routes may drive operators toward non-toll roads.

Additionally, the Ministry of Public Works has established a 2028 deadline for major projects in Flores and Kalimantan. This includes finalizing the 472.48-kilometer North Flores Highway to connect Labuan Bajo to Maumere and accelerating the construction of a 2,300-kilometer border road in Kalimantan to improve connectivity and access for inland communities.