Highlighted Topic: Indonesia’s 77 National Strategic Projects for 2025-2029
Indonesian President Prabowo Subianto has officially approved 77 National Strategic Projects (PSN) to be prioritized during his 2025-2029 term. This initiative is guided by Presidential Regulation No. 12 of 2025, which outlines the National Medium-Term Development Plan (RPJMN) for the same period, published in February 2025.
The current list of PSNs comprises 29 new initiatives and 48 ongoing projects carried over from the previous administration, reflecting the government’s commitment to advancing strategic development priorities. Notably, the list of PSNs is designed to remain dynamic, with new projects being awarded as opportunities arise. At the same time, rigorous monitoring ensures that projects with slow progress or no tangible results may be removed, ensuring a focus on high-impact and feasible initiatives that align with the nation’s developmental goals.
The projects are as follows:
48 Ongoing:
1. Development of the International Islamic University Indonesia Campus: Location: West Java; Implemented by: Ministry of Religious Affairs and Ministry of Public Works
2. Way Apu Dam: Location: Maluku; Implemented by: Ministry of Public Works
3. Jragung Dam: Location: Central Java; Implemented by: Ministry of Public Works
4. Mbay Dam: Location: East Nusa Tenggara; Implemented by: Ministry of Public Works
5. Bulango Ulu Dam: Location: Gorontalo; Implemented by: Ministry of Public Works
6. Wosusokas Regional Water Supply System (SPAM): Location: Central Java; Implemented by: Ministry of Public Works
7. Benteng-Kobema Regional Water Supply System (SPAM): Location: Bengkulu; Implemented by: Ministry of Public Works
8. Development of Abadi Field in Masela Block: Location: Maluku; Implemented by: Private Sector
9. Expansion of Tuban Oil Refinery: Location: East Java; Implemented by: PT Pertamina
10. Development of Biofuel from Methanol and Ethanol in Bojonegoro: Location: East Java; Implemented by: PT Pertamina
11. North Hub Development Project, Makassar Strait: Location: Kalimantan; Implemented by: Private Sector
12. Revenery Development Master Plan Refenery Unit IV (RDMP RU IV) Cilacap: Location: Central Java; Implemented by: PT Pertamina
13. Cilacap Biorefinery: Location: Central Java; Implemented by: PT Pertamina
14. Urban Gas Network Development: Locations: Batam, Palembang, Pekanbaru, Makassar, Jakarta, Bekasi, Palu; Implemented by: PT Pertamina/PGN
15. Development of Arun Lhokseumawe Special Economic Zone (SEZ): Location: Nanggroe Aceh Darussalam; Implemented by: BUPP KEK Arun Lhokseumawe
16. Development of Sei Mangkei SEZ: Location: North Sumatra; Implemented by: BUPP KEK Sei Mangkei
17. Development of Galang Batang SEZ: Location: Riau Islands; Implemented by: BUPP KEK Galang Batang
18. Development of Integrated Industrial Park in Batang: Location: Central Java; Implemented by: Private Sector
19. Development of Ketapang Industrial Park: Location: West Kalimantan; Implemented by: Private Sector
20. Development of Kalimantan Industrial Park Indonesia (KIPI): Location: North Kalimantan; Implemented by: Private Sector
21. Development of Weda Bay Industrial Park: Location: North Maluku; Implemented by: Private Sector
22. Bantaeng Industrial Park: Location: South Sulawesi; Implemented by: Private Sector
23. Teluk Bintuni Industrial Park and Development of Methanol, Ammonia, and Carbon Utilization from CCUS/CCS: Location: West Papua; Implemented by: Private Sector
24. Tanah Kuning Industrial Park: Location: North Kalimantan; Implemented by: Private Sector
25. Pulau Ladi Industrial Park: Location: Riau Islands; Implemented by: Private Sector
26. Fakfak Industrial Park: Location: West Papua; Implemented by: State-Owned Enterprises
27. Dahuaxing Industrial Park in Indonesia: Location: Central Sulawesi; Implemented by: Private Sector
28. Huali Industry Park in Indonesia: Location: South Sulawesi; Implemented by: Private Sector
29. Wiraraja Green Renewable Energy & Smart-Eco Industrial Park: Location: Riau Islands; Implemented by: Private Sector
30. Giga Industry Park in Indonesia: Location: Southeast Sulawesi; Implemented by: Private Sector
31. Kolaka Resources Industrial Park: Location: Southeast Sulawesi; Implemented by: Private Sector
32. ASPIRE Stargate Industrial Park: Location: Southeast Sulawesi; Implemented by: Private Sector
33. Development of Toapaya, Pulau Poto, and Kampung Masiran Industrial Park: Location: Riau Islands; Implemented by: Private Sector
34. Tekno Hijau Konasara Industrial Park: Location: Southeast Sulawesi; Implemented by: Private Sector
35. Futong Industrial Park: Location: Riau; Implemented by: Private Sector
36. Pulau Penebang Industrial Park: Location: West Kalimantan; Implemented by: Private Sector
37. Kumai Multi Energy Industrial Park: Location: Central Kalimantan; Implemented by: Private Sector
38. Alumina Toba Industrial Park: Location: West Kalimantan; Implemented by: Private Sector
39. Indo Mineral Mining Industrial Park: Location: Central Sulawesi; Implemented by: Private Sector
40. Tabuk Industrial Park: Location: Central Kalimantan; Implemented by: Private Sector
41. Rimau Industrial Park: Location: Central Kalimantan; Implemented by: Private Sector
42. Development of the New Capital City (IKN): Location: Ibu Kota Nusantara (New Capital City); Implemented by: IKN Authority, Ministry of Public Works, BUMN, Private Sector
43. Patimban Port Development: Location: West Java; Implemented by: Ministry of Transportation
44. Jakarta Metropolitan MRT East-West Corridor Development: Location: DKI Jakarta, West Java, Banten; Implemented by: Ministry of Transportation, DKI Jakarta Provincial Government, West Java Provincial Government, Banten Provincial Government, PT MRT Jakarta
45. Serang-Panimbang Toll Road Development: Location: Banten; Implemented by: Ministry of Public Works
46. Probolinggo-Banyuwangi Toll Road Development: Location: East Java; Implemented by: Ministry of Public Works
47. Patimban Port Access Toll Road Development: Location: West Java; Implemented by: Ministry of Public Works
48. Jakarta Sewerage System Development: Location: DKI Jakarta; Implemented by: Ministry of Public Works, DKI Jakarta Provincial Government
New Projects:
1. Free Nutritious Meals Program: Location: National; Coordinated by: National Nutrition Agency
2. Revitalization of Quality School and Madrasah Facilities and Infrastructure: Location: National; Coordinated by: Ministry of Education, Primary and Secondary Education
3. Development and Operation of Excellent Schools: Location: National; Coordinated by: Ministry of Higher Education, Science, and Technology
4. Development of Complete, Quality Hospitals in Districts/Cities: Location: National; Implemented by: Ministry of Health
5. Tuberculosis Eradication Program: Location: National; Implemented by: Ministry of Health
6. Development of Food Security Reserves: Food Estate Development: Locations: Central Kalimantan, South Sumatra, South Papua; Implemented by: Ministry of Agriculture, Private Sector
7. Food Security through Community-Based Forestry: Location: National; Coordinated by: Ministry of Forestry
8. Irrigation Services Supporting National Food Reserves: Location: National; Implemented by: Ministry of Public Works
9. Beef and Milk Production Enhancement: Location: National; Implemented by: Ministry of Agriculture, Private Sector
10. National Fishery Port Development: Location: Bali; Implemented by: Ministry of Marine Affairs and Fisheries, Private Sector
11. Sustainable Aquaculture Revitalization: Location: West Java; Implemented by: Ministry of Marine Affairs and Fisheries
12. Giant Sea Wall for North Java Coast: Locations: DKI Jakarta, West Java, East Java, Banten, and Central Java; Implemented by: Ministry of Public Works, DKI Jakarta Provincial Government
13. Kayan 9 GW Integrated Hydroelectric Power Plant: Location: North Kalimantan; Implemented by: Private Sector
14. Bioethanol (Sugarcane-Based): Locations: North Sumatra, Lampung, West Java, Central Java, Yogyakarta, East Java, South Sulawesi, South Papua; Coordinated by: Ministry of Energy and Mineral Resources
15. Biorefinery Sumatera: Locations: Riau, South Sumatra; Implemented by: PT Pertamina
16. RDMP RU VI Balongan Rescoping: Location: East Java; Implemented by: PT Pertamina
17. Sagou, Cassava, and Sweet Potato Downstreaming Program: Projects: (i) Strengthening Supply of Raw Materials for Sagou and Cassava Flour Downstreaming; (ii) Development of Sagou Industry: Locations: Papua, Sumatra, Java, Nusa Tenggara; Implemented by: Ministry of Agriculture, Private Sector
18. Salt Downstreaming Program: Soda Ash Development Project: Location: East Java; Implemented by: State-Owned Enterprise & Private Sector
19. Palm Oil, Coconut, Seaweed Downstreaming Program: Locations: North Sumatra, Riau, West Sumatra, Jambi, South Sumatra, Riau Islands, Banten, West Java, Bali, NTB, NTT, North Kalimantan, West Kalimantan, South Kalimantan, East Kalimantan, South Sulawesi, North Sulawesi, North Maluku, Papua, West Papua; Implemented by: Private Sector
20. Nickel, Tin, Bauxite, Copper Downstreaming Program: Locations: Banten, West Java, Central Java, East Java, South Sulawesi, Southeast Sulawesi, Central Sulawesi, North Maluku, South Kalimantan, East Kalimantan, West Nusa Tenggara, Central Papua, Riau Islands, North Sumatra, Bangka Belitung, West Kalimantan; Implemented by: PT MIND ID, Private Sector
21. Aerospace Industry Development Program: Development of N219 Amphibious Aircraft: Location: National; Implemented by: Ministry of Defense, PT Dirgantara Indonesia
22. Chemical Industry Development Program: Projects: (1) Chlor Alkali and Ethylene Dichloride Plant Construction; (2) Lotte Chemical Indonesia New Ethylene Project: Location: Banten; Implemented by: Private Sector
23. Integrated Digital Government Services Development: Location: National; Coordinated by: Ministry of State Apparatus Utilization and Bureaucratic Reform
24. Provision of Large-Scale Basic Maps (1:5,000) Across Indonesia: Location: National; Implemented by: Geospatial Information Agency
25. Development of Ambon Integrated Port: Location: Maluku; Implemented by: Ministry of Marine Affairs and Fisheries, Ministry of Transportation
26. Development of Toll Roads Integrated with Utilities: Location: Sumatra; Implemented by: State-Owned Enterprises (assigned)
27. Development of New Autonomous Regions (DOB) Papua Government Center: Locations: Central Papua, South Papua, Papua Mountains, and West Papua; Implemented by: Central Papua Provincial Government, South Papua Provincial Government, Papua Mountains Provincial Government, West Papua Provincial Government
28. Development of 3 Million Houses: Location: National; Coordinated by: Ministry of Public Housing and Settlement Areas
29. Development of Waste-to-Electricity Treatment Plants Using EnvironmentallyFriendly Technology: Locations: DKI Jakarta, Tangerang, South Tangerang, Bekasi, Bandung, Semarang, Makassar, Denpasar, Palembang, and Manado; Implemented by: Local Government and Private Sector
Skylight’s Practical Insights Economic Strategy
- The 77 National Strategic Projects (PSNs) and the upcoming ones are pivotal to stimulating economic growth, job creation, and enhancing Indonesia’s global competitiveness, as outlined in the 2025-2029 Plan.
- While budget cuts pose challenges to the timely implementation of infrastructure and industrialization goals, economic resilience, especially among the low- to middle-income population, demonstrates their adaptability and growing contribution to domestic consumption.
- Public-private collaboration remains vital, and mechanisms to secure private sector involvement need a clear alignment of roles to reduce potential government dominance in specific sectors.
Macroeconomic Opportunities and Risks
- Opportunities:
- Indonesia’s thriving low- to middle-income class continues to anchor domestic demand, cushioning the economy against external shocks. Policies that expand access to services and affordable goods add to their resilience.
- Strategic projects in renewable energy, logistics, and industrial parks are poised to align Indonesia with global market trends while ensuring long-term growth in underserved regions.
- Indonesia’s strategic position within ASEAN supports stronger trade linkages, and infrastructure upgrades could further resolve logistical inefficiencies and boost productivity.
- Risks:
- Persistent regulatory uncertainty in renewable energy policies might challenge the momentum of green energy initiatives and delay investor commitments. A transparent, incentive-driven regulatory environment is critical.
- Shrinking household consumption among the higher middle-income spectrum poses risks; however, targeted subsidies and tax reliefs could stabilize spending patterns.
- Public sector dependency for infrastructure could result in deferred timelines if budget reallocations or global supply chain shocks persist. Ensuring financial diversification is essential.
Government and Administrative Challenges
- Coordination: Effective inter-ministry collaboration must improve to streamline project approvals. Establishing a centralized monitoring body could provide faster accountability in PSN implementation.
- Investor Needs: A comprehensive and detailed roadmap with reduced administrative bottlenecks will foster confidence, especially among international investors.
- Accountability: Implementation of advanced digital monitoring tools for public-private projects aligns with Indonesia’s goal of reducing corruption and ensuring resource efficiency.
Social and Environmental Considerations
- Social: Economic programs must integrate low- to middle-income workforce participation, especially in PSNs focusing on formal employment opportunities. Inclusive planning in urban and rural regions will ensure equitable growth.
- Environmental: PSNs need to balance development with ecological preservation. Encouragement of green technology and a streamlined environmental impact assessment process will mitigate potential delays.
Geopolitical Implications
- Indonesia’s role as an economic hub in the Indo-Pacific and ASEAN remains strengthened by projects fostering trade, connectivity, and industry. Infrastructure upgrades like enhanced port facilities and industrial zones align Indonesia further with global trade demands.
- Expansion into smart infrastructure positions Indonesia as a regional innovator while enabling efficient trade and logistics networks within the Indo-Pacific corridor.
- Diversifying downstream partnerships increases Indonesia’s leverage in high-tech sectors, mitigating over-reliance on resource-based industries and fostering global technological collaboration. Balancing these partnerships will avoid geopolitical tensions with resourcereliant trade allies.
Financing Strategy
- Evolving financing solutions like public-private partnerships (PPPs), sustainable green bonds, and phased project funding approaches provide practical avenues to manage fiscal constraints while progressing PSN objectives.
- Phasing high-return, low-risk projects, especially in logistics and industrial zones, could balance near-term revenue generation with long-term development expectations.
- Transparent planning, emphasizing clear revenue models, will maintain investor confidence amid economic shifts, reducing perceived risk.
Recommendations for Private Sectors
1. Strategic Project Selection:
- As the number of PSNs is growing, focus on PSNs in established and high-stability sectors such as transportation hubs or industrial parks tied to export or supply chain enhancements. Targeting utility expansions in populous regions guarantees returns.
2. Leverage Resilience Trends:
- Position investments within priority sectors backed by Indonesia’s National Strategic Projects (PSN), which aim to foster resilience and drive economic growth by focusing on industrial development, urbanization, and social infrastructure.
- Consumer Goods: Capitalize on rising incomes and urban expansion by tailoring products to meet the everyday needs of Indonesia’s growing middle class. Develop affordable and culturally suitable options, including halal-certified goods, while exploring e-commerce collaborations to reach remote areas. Tie these efforts to programs addressing local welfare, such as the Free Nutritious Meal Program, which supports healthy living and inclusive growth.
- Healthcare and Pharmaceuticals: Leverage government-backed initiatives, such as expanding access to universal healthcare under BPJS, to develop cost-effective medical solutions. Opportunities exist in producing essential medicines, affordable over-the-counter products, and local production of medical devices to address growing healthcare demands in urban and rural areas. Aligning with broader social objectives, these efforts contribute to improving national health and productivity.
- Manufacturing and Infrastructure: Investments in industrial parks offer opportunities to benefit from enhanced infrastructure, while construction projects such as the three million housing initiative and the Nusantara capital project unlock extensive demand for construction materials, workforce management, and supporting industries. Adopting cutting-edge technologies and optimizing supply chains will further enhance operational efficiency and competitiveness within these sweeping developments.
3. Forge Collaborative Models:
- Build trust through consistent community engagement and stakeholder dialogues for smooth approvals, especially in regions requiring significant land use or workforce realignment. o Strengthen ties with established local firms to enhance project adaptability to evolving regulations and expand operational scale.
4. Prioritize Environmentally Conscious Projects:
- Align projects with renewable energy frameworks that demonstrate measurable sustainability outcomes, increasing both regulatory traction and public support.
5. Stay Agile to Geopolitical Dynamics:
- Monitor emerging Indo-Pacific economic partnerships that intersect with PSN goals. Collaborative international funding platforms often support bilateral trade connectivity with minimal barriers.
- Build contingency buffers for unforeseen global trade disruptions or policy adjustments that impact Indonesia’s medium-term export forecasts.
While PSN implementation faces hurdles, proactive adjustments through risk-conscious investments can establish lasting economic and social benefits. Businesses that align strategic goals with Indonesia’s evolving opportunities and mitigate sector-specific challenges can make a better positioning in this dynamic economic landscape.
Latest Update
- Malaysian Largest Plastic Producer to Invest in KITB for IDR 1 Trillion
- Malaysian plastic giant, Thong Guan Industries recently inked a land purchase order to set up a production plant in Central Java’s Batang integrated industrial park.
- Thong Guan Industries will set up a production plant over a 5-hectare land to manufacture plastic products for domestic consumers and export markets. The plant will produce plastic wraps, garbage bags, and plastic film, to name a few. The Batang project will have an initial investment value of USD 7 million.
- According to Thong Guan’s managing director Ang Poon Chuan, Indonesia’s large market potential and the industrial park’s facilities were what convinced the company to invest in the close neighbor.
- The release introduced Thong Guan Industries as one largest plastic packaging producers in the Asia-Pacific. The company runs a manufacturing plant in China. Thong Guan’s total annual production capacity stands at up to 150,000 tons. Its turnover reaches 1.2 billion Malaysian ringgits or approximately $268.6 million. The plastic maker did not give a time frame for when the plant’s construction would start.
- The Batang industrial estate is currently in the process of securing the special economic zone (SEZ) status, aiming to get more fiscal and non-fiscal incentives.
- Indonesia and Japan to Continue the Kayan Hydropower Project
- The Kayan Hydro Energy (KHE) Project is set to be Indonesia’s largest hydropower initiative, with an ultimate capacity of 1.37 gigawatts in its first phase. It aims to kickstart operations by 2030, contributing significantly to Indonesia’s transition from fossil fuels to renewable energy.
- The project involves the construction of five dams along the Kayan River, with a long-term goal of producing 9 gigawatts of clean energy.
- Sumitomo Corporation, a former key partner, has withdrawn from the project. KHE is now seeking a new Japanese partner to carry the initiative forward.
- On February 28, 2025, a Letter of Intent Cooperation (LOI) was signed between Indonesia and Japan to ensure the continuation of the project. The LOI signing involved Edi Prio Pambudi, Indonesia’s Deputy for Coordination of Economic Cooperation and Investment, and Masanori Tsuruda, Japan’s Deputy Commissioner for International Affairs at METI.
- The KHE project is a core part of Indonesia’s energy strategy, providing renewable energy to support hydro-industrialization in North Kalimantan. It is part of the Asia Zero Emission Community (AZEC), a regional collaboration aimed at achieving carbon neutrality. The plant’s potential impact includes substantial contributions to green energy output, industrial development, and an enhanced focus on environmental sustainability.
- Designated as a Category II Project during the 2024 Expert Group Meeting, signifying high potential for commercialization but still pending feasibility studies.
- Germany and China Initiate Investment in Indonesian Bamboo
- Deputy Minister of Industry Faisol Riza revealed there will be new investments from Germany and China in the bamboo sector.
- This investment plants to empower 20,000 villages in Indonesia. This figure contributes about 26.4 percent of the total villages in Indonesia, which is 75,753 villages in 2024, based on data from the Central Statistics Agency (BPS). o The investment came from two companies, one of which is Fujian Shuangyi Bamboo And Wood Development Co., Ltd, a global manufacturer for bamboo based houseware materials based in Nanping, China, which is also a supplier of IKEA.
- Indonesia was chosen because its massive bamboo raw material resource, which is around 9 million bamboo stems. Moreover, the quality of the country’s bamboo is considered better than bamboo produced in China, due to its strength as an alternative material for wood substitutes. One of the 4 to 7 types of bamboo that the investor is interested in is betung bamboo, one of the strongest types of bamboo available.
- The Foreign Investment company will be export-oriented and based in East Nusa Tenggara (NTT).
- Obtaining National Strategic Project, Chandra Asri Expressed Interest in Building an IDR 15 Billion CA-EDC Factory
- PT Chandra Asri Pacific Tbk (TPIA) expressed its readiness to build a Chlor AlkaliEthylene Dichloride (CA-EDC) Plant in Cilegon City, Banten. The project has been included in the National Strategic Project (PSN).
- Currently, TPIA has a number of licensing documents including an environmental impact assessment (EIA) from the Ministry of Environment (MOE) and a Building Approval (PBG) document as a condition for continuing construction.
- The CA-EDC plant project costs an investment of USD 1 billion and will be managed by Chandra Asri Group subsidiary, PT Chandra Asri Alkali (CAA). The plant will have a production capacity of 400,000 tons per year for wet caustic soda and 500,000 tons per year for EDC.
- Chandra Asri Group signed a collaboration with Asahi Kasei Corporation (AKC) from Japan for the licensing of caustic soda plant technology, and signed a license for basic engineering and technical services agreement with a leading vinyl technology from the United States to develop the EDC plant.
- Sinarmas Builds an IDR 4.9 Trillion Data Center in Indonesia
- SM+, a digital infrastructure and services company backed by Sinarmas, together with its joint venture partner, Korea Investment Real Asset Management (KIRA), inaugurated the ground-breaking of SMX01, an AI-ready data center in Jakarta.
- The facility has an investment of more than USD 300 million and was developed in collaboration with LG Sinar Mas as technology advisor and operator.
- SMX01 is scheduled to begin operations in the second half of 2026, SMX01 aims to meet the growing demand for digital infrastructure in Southeast Asia, where the digital economy is projected to reach USD 1 trillion by 2030.
- With nearly 15,500 square meters of data hall white space, SMX01 is a data center designed to meet the diverse needs of customers, ranging from enterprise businesses to global hyperscale companies.
- With a reliable infrastructure that supports up to 2,400 racks divided into nine data halls, SMX01 offers high scalability. Each data hall is capable of accommodating up to 340 racks and can be customized to meet various data center demands, including to meet colocation, hyperscale services that require high power density racks, as well as other emerging data center utilizations such as Artificial Intelligence (AI) and machine learning applications.
- SMX01 is poised to propel Indonesia into the center of technology transformation and innovation in Southeast Asia and will be equipped with features that support large power requirements for high-performance computing. With an initial capacity of 18 MW, it can be scaled up to 60 MW, and will be build according to Tier IV standard and to achieve Green Building Certification.
- Adaro’s Strategic Plan to Acquire Kalimantan Industrial Park Indonesia
- PT Alamtri Resourcs Indonesia Tbk (ADRO) announced that its subsidiary, PT Alam Tri Bangun Indonesia, will take over PT Kalimantan Industrial Park Indonesia (KIPI) with a debt-to-share conversion scheme as a strategic step in strengthening its business ecosystem
- Alam Tri Bangun Indonesia’s management said the acquisition came from a loan provided by ADRO to PT Kawasan Industri Kalimantan Asri, the owner of KIPI, with a pledge of KIPI shares.
- KIPI is a national strategic project developed as a green industrial area. The area includes electric vehicle battery, petrochemical, and aluminum industries, with an area of around 13,000 hectares. In the industrial complex, PT Adaro Minerals Indonesia Tbk (ADMR), a subsidiary of ADRO, is building a smelter, targeted for completion by the end of 2025.
- Electricity supply to KIPI will come from PT Kayan Hydropower Nusantara, in which ADRO has a 50% stake. Meanwhile, in the short term, the industrial estate will still rely on existing steam power plants.
- However, until present time, there has been no official information regarding the amount of ADRO’s ownership in KIPI after the share conversion process is completed.
- Vietnam Expressed Interest to Invest in Dairy Cows in Indonesia, Targeting 1.8 Million Tons of Milk Production
- One of Vietnamese biggest company focused on food and beverage, TH Group, has agreed to invest in the development of dairy cattle in Indonesia, on March 3, 2025.
- Agriculture Minister Andi Amran Sulaiman said the company is willing to supply about 50 percent of the import target for feeder dairy cattle set by President Prabowo Subianto’s administration. As of 2025, Indonesia’s import is approximately more than 3 million.
- The government offers various incentives, such as import duty exemptions for livestock and dairy industry equipment. In addition, funding schemes with competitive interest rates and farm business insurance are available. Three strategic locations have been prepared for this investment: – Wajo-Sidrap, South Sulawesi – Barito Utara-Barito Selatan, Central Kalimantan – Poso (Napu Valley), Central Sulawesi
- In addition to land, the government guarantees supporting infrastructure such as roads, electricity, clean water, and health and education services for workers.
- The interest of TH Group was already made known back in 2024, where they were interested in developing a dairy cattle industry on 10,000 hectares of land in Poso, Central Sulawesi.
- TH Group also plans to build a milk processing facility with a production target of 1.8 million tons per year.
- IBC Seeks AIIB’s Support for Indonesia’s National Strategic Projects
- The Indonesian Business Council (IBC) engaged the Asian Infrastructure Investment Bank (AIIB) in a business dialog to promote infrastructure investment and private sector participation in Indonesia.
- IBC Chairman Arsjad Rasjid highlighted the nation’s goal of becoming a top-five global economy, requiring private sector involvement in 33 of the 77 National Strategic Projects (PSNs) set for the next five years.
- AIIB President Jin Liqun endorsed these efforts, emphasizing the private sector’s vital role in achieving Indonesia’s development goals. AIIB, a global development finance institution with USD 100 billion in capitalization, has financed 40 projects worth USD 2.21 billion worldwide, focusing on sustainable infrastructure.
- PGN Allocates IDR 5 Trillion for Gas Infrastructure Expansion
- State-owned PT Perusahaan Gas Negara Tbk (PGN) earmarked USD 338 million to expand Indonesia’s natural gas infrastructure in 2025. While its pipeline spans Aceh to East Java, challenges remain in eastern Indonesia. PGN plans to address this with LNG and CNG solutions for regions without pipeline access.
- The company also entered the international market in 2024 by successfully selling LNG to global buyers and anticipates increased domestic gas supply from projects like the Masela Block starting in 2030.
- Indonesia’s New Oil Refinery Plans
- The Indonesian Ministry of Energy has unveiled plans to construct multiple crude oil refineries with a total capacity of 1 million barrels per day (mb/d) across 16 locations, including Sumatera, Kalimantan, Java, and East Indonesia.
- A highlight is the Pemping Island refinery project in Batam, Riau Islands, with a capacity of 532 thousand barrels per day (kb/d). This $12.5 billion project could save $16.7 billion annually through reduced oil imports and create 63,000 direct and 315,000 indirect jobs. Alongside this, the government plans to build a 1 mb/d oil storage tank on Pulau Nipah to boost energy supply resilience.
- Indonesia’s current refining capacity (1,151 kb/d as of 2023) remains insufficient, forcing reliance on imports since no new refineries have been built since 1994. These developments are part of a broader $40 billion government initiative targeting 21 downstream resource processing projects within 26 mining commodity sectors, aimed at enhancing national energy sustainability.
- Denza Enters Indonesia’s Auto Market, Outselling Premium Rivals.
- Denza, a premium EV brand under BYD Group, made a notable entry into Indonesia’s automotive market in January 2025, selling 937 units in its first two months.
- Competing in a market dominated by Japanese automakers—including leaders like Toyota and Honda, and emerging players like Hyundai and Wuling—Denza has positioned itself as a luxury EV brand targeting Indonesia’s high-end segment.
- Built on BYD’s EV technology and Mercedes-Benz’s premium design legacy, Denza leverages its success as a Chinese new energy leader to expand globally. Its focus on cutting-edge technology, sustainability, and craftsmanship is reshaping the luxury EV market and challenging established automakers.
- Indonesia Purchasing Manufacturing Index Shows Expansion
- Indonesia’s manufacturing sector showed strong growth in February 2025, with the Purchasing Managers’ Index (PMI) rising to 53.6, up from January’s 51.9, marking an 11-month high. The sector saw rapid growth in new orders, production output, raw material purchases, and employee recruitment, achieving record levels.
- Joe Hayes of S&P Global Market Intelligence highlighted this positive momentum as a solid foundation for the first quarter of 2025. While optimism remains high, the domestic market is expected to drive growth in the near term, as weak exports and protectionist policies pose challenges to international trade.
- NuEnergy Relinquishes Muara Enim-2 PSC
- NuEnergy Gas Limited, an Australian CBM developer, is relinquishing its 30% interest in the Muara Enim-2 PSC in South Sumatra, Indonesia, to focus on advanced projects like the Tanjung Enim PSC.
- The decision, which has minimal financial impact, aligns with the company’s strategy to prioritize assets with near-term monetization. The Tanjung Enim project, approved in 2021, features 209 wells over 33 km² with reserves of 164.89 Bscf.
- NuEnergy has advanced its plans by signing agreements with PT PGN for future gas sales and submitting a draft Gas Sales and Purchase Agreement (GSPA). Pending final approval, the project aims for initial production of 1 mmscfd, peaking at 25 mmscfd, marking Indonesia’s first commercial CBM development and strengthening NuEnergy’s role in the energy sector.
- Singapore Expressed Interest to Invest in Vietnam’s Industrial Park
- Singaporean firms are actively expanding investments in Vietnam, focusing on the digital economy, circular economy, renewable energy, industrial parks, and green finance. During discussions with Lim Boon Heng of Temasek Holdings and Tow Heng Tan of Sembcorp Industries, To Lam, General Secretary of the Communist Party of Vietnam Central Committee, reaffirmed Vietnam’s support for these investments, aligned with its 8% economic growth target.
- Sembcorp proposed a pilot policy for the Vietnam-Singapore Industrial Park model and emphasized interest in renewable energy, gas turbines, and offshore wind projects, alongside training initiatives. Temasek expressed a strong commitment to green energy collaboration. By December 2024, Singapore led foreign investment in Vietnam with USD 10.2 billion, despite higher investment in Indonesia at USD 20.1 billion.
- This growing partnership underlines shared goals in renewable energy and sustainable development, fostering bilateral economic cooperation while driving Vietnam’s green transition and long-term growth.
- Vinfast Targets Factory Operational By End of 2025
- VinFast Automobile Indonesia, which officially held a ground-breaking ceremony in July 2024 for the construction of an electric car factory in Subang, West Java, for an investment of USD 200 million is targeted for completion by the Q4 of 2025 and production in early 2026 to fulfill the requirements of the Indonesian government.
- Occupying more than 100 hectares land, the capacity of the VinFast plant reaches 50,000 units per year with a target employment of 1,000 to 3,000 people.
- With its proximity to the port, it is deemed strategic for the Vietnamese manufacturer to export cars assembled in Indonesia to several Southeast Asian countries.
- Tencent 3rd Data Center In Indonesia
- Tencent Cloud announced that it will strengthen its presence in Indonesia by building its third data center in the country. This step is part of an investment plan of around USD 500 million for infrastructure and resources in Indonesia until 2030.
- Tencent Cloud is the cloud computing services division of Tencent, and one of China’s largest technology companies. Tencent Cloud provides various cloud computing-based solutions, such as data storage, artificial intelligence (AI), big data analytics, cybersecurity, and cloud gaming services. o The new infrastructure service will complement existing data centers, joining Tencent Cloud’s global network of more than 50 availability zones in 21 regions, including Indonesia. It holds approximately 7.67% market share in the Asia Pacific Region and has been actively trying to expand its presence in the market.
- In addition to building infrastructure, Tencent Cloud is also collaborating with other major digital ecosystems in Indonesia such as GoTo Group, Bank Neo Commerce, Tekomsel, DANA, Ruangguru, Everywhere.id, and Bank DKI.
- Qatar to Build 1 Million Apartments in Indonesia Starting April 2025
- Qatar will begin constructing 1 million apartment units in Indonesia in April 2025, as part of its commitment to support the 3 million homes program, a government initiative to address the country’s housing shortage.
- According to Housing Task Force Head, Hashim Djojohadikusumo, the Qatari investment for the first phase is estimated at USD 18 billion to USD 20 billion. Interest from international investors is growing, with India, Singapore, and Turkey also expressing willingness to invest in Indonesia’s housing sector.
- Beyond the initial phase, Qatar plans to expand its investment to fund the construction of 3 to 5 million homes and apartments in both urban and rural areas.
- Additionally, Abu Dhabi’s Mubadala Investment Company is expected to invest in 1 million apartment units, further strengthening foreign participation in the program.
- President Prabowo Subianto aims to build 2 million homes in villages and 1 million in cities annually as part of his effort to reduce Indonesia’s housing backlog, which currently stands at 12.7 million units.
- Indonesia Airlines Group To Launch A Premium International Airline
- Indonesia Airlines Group (INA), backed by Singapore’s Calypte Holding Pte Ltd, is set to launch as a premium international airline in Indonesia.
- INA plans to challenge competitors with a fleet of 20 modern aircraft, including 10 medium-haul Airbus A321neo/LR planes and 10 long-haul Airbus A350-900 and Boeing 787-9 jets. Business plannings and feasibility studies are currently underway.
- Indonesia’s international air travel recovery has been among the strongest in Southeast Asia, second only to Vietnam, which is now 13% above pre-pandemic levels. In comparison, international capacity in Singapore and Malaysia has increased by 2.2% compared to summer 2019, while the Philippines remains 5.8% below pre-pandemic levels and Thailand lags by 11.7%.
- Japan Supports 4 Indonesian Infrastructure Project Valued at IDR 5.7 trillion
- Indonesia received financing support from Japan through the Japan International Cooperation Agency (JICA) for four major infrastructure projects. The total loan disbursed reached USD 355.32 million.
- The projects are: – The technical preparation project for the Sutami Dam upgrade in the Brantas watershed, received funding of USD 21.1 million. – A loan for the Volcanic Disaster Risk Reduction Sector Loan project of USD 174 million. – Integrated Urban Flood Management Project in Greater Jakarta with an allocation of USD 95.32 million. – Development of the Padang-Pekanbaru Toll Road Phase 1 and 2, received funding of USD 64.9 million.
- Indonesia’s cooperation with JICA in the infrastructure sector has been going well. Previously, there have been 10 projects financed by JICA loans totalling around USD 1.65 billion, covering various fields such as irrigation, river management, beaches, as well as road construction and sanitation.
- Taiwanese Company Opened a Factory in Cikembar Industrial Park
- PT Huang Fu Leather, a Taiwanese company that moves in cow leather and footwear sector, had a ground breaking on February 24, 2025, for a 3 hectare land.
- The company will be engaged in cow leather by producing premium footwear materials, where it will absorb 500-600 workers.
- PT Hung Fu Leather is a factory engaged in shoe leather management, with supplies to Nike, Puma, as well as other well-known shoe brands.
- Cikembar Industrial Park is located in South Jakarta, with an area of 220 hectare. It currently hosts approximately 10 tenants, mixed of China and some local companies.
-end-
REFERENCES
- Skylight Analytics Hub
- https://www.pwc.com/id/en/media-centre/infrastructure-news/march-2025/strategicprojects-29-new-projects-enter-the-national-strategic-projects-list.html
- https://www.kompas.com/properti/read/2025/03/03/143000021/ini-daftar-lengkap-77- proyek-strategis-nasional-2025-2029
- https://jakartaglobe.id/business/malaysian-plastic-giant-thong-guan-to-set-up-7-millionfactory-in-c-java
- https://indonesiabusinesspost.com/3844/energy-and-resources/japan-backs-indonesiaskayan-hydropower-project-to-boost-renewable-energy-goals
- https://kumparan.com/kumparanbisnis/wamenperin-sebut-jerman-dan-china-bakalinvestasi-budidaya-bambu-di-ri-24cvSiCg7u3
- https://investasi.kontan.co.id/news/masuk-psn-chandra-asri-tpia-siap-bangun-pabrik-caedc-senilai-rp-15-triliun
- https://teknologi.bisnis.com/read/20250306/101/1858748/sinarmas-sm-bangun-datacenter-ai-rp49-triliun-di-jakarta-rampung-2026
- https://www.idnfinancials.com/id/news/53038/anak-usaha-adro-akuisisi-kipi-lewatkonversi-utang
- https://money.kompas.com/read/2025/03/11/063305726/vietnam-bakal-investasi-sapiperah-di-indonesia-target-produksi-susu-18-juta?page=all
- https://news.majalahhortus.com/th-group-vietnam-tartarik-investasi-peternakan-disulteng/
- https://jakartaglobe.id/business/denza-enters-indonesias-auto-market-outselling-premiumrivals
- https://www.cnbcindonesia.com/market/20250311192944-17-617747/aiib-duduk-barengpengusaha-ri-bahas-puluhan-proyek-strategis-nasional
- https://www.idnfinancials.com/id/news/53047/pgas-alokasikan-capex-rp5-triliun-pada2025%2C-untuk-apa
- https://www.enerdata.net/publications/daily-energy-news/indonesia-plans-build-oilrefineries-total-capacity-1-mbd.html https://www.cnbcindonesia.com/news/20250306181316-4-616382/prabowo-bangunkilang-minyak-raksasa-dekat-singapura-ini-alasannya https://www.bloombergtechnoz.com/detail-news/64489/aktivitas-manufaktur-ri-melesattertinggi-dalam-11-bulan
- https://www.petromindo.com/news/article/nuenergy-relinquishes-muara-enim-2-psc
- https://e.vnexpress.net/news/business/economy/singaporean-businesses-seek-to-investmore-in-vietnam-s-renewable-energy-industrial-parks-4860183.html
- https://www.idxchannel.com/technology/investasi-rp32-triliun-di-subang-pabrik-vinfastditargetkan-selesai-akhir-2025
- https://tekno.kompas.com/read/2025/02/24/10300087/tencent-cloud-bakal-tambah-datacenter-di-indonesia-investasi-capai-rp-7-8 https://inet.detik.com/business/d-7783281/tencent-cloud-boyong-inovasi-cloud-dan-ai-keindonesia-ada-palm-scanner
- https://jakartaglobe.id/business/qatar-to-build-1-million-apartments-in-indonesia-startingapril-2025
- https://aviationweek.com/air-transport/airlines-lessors/new-indonesian-airline-plannedamid-growing-international-demand
- https://finance.detik.com/infrastruktur/d-7796310/jepang-biayai-4-proyek-infrastruktur-rirp-5-79-triliun
- https://jurnalsukabumi.com/2025/02/24/kabar-gembira-pt-hung-fu-leather-indonesiahadir-di-kawasan-industri-cikembar-sukabumi