Infrastructure & PPPs in Indonesia - Q2 2025 Update
- YOG INFRA
- Jul 8
- 13 min read
YOG INFRA Q2 2025 insight series
INDONESIA has seen notable developments in clean energy sector in last quarter; including launch of its 2025–2034 Electricity Supply Business Plan (RUPTL), aiming to add 69.5 GW of new power generation capacity - 76 % of which will come from renewable sources and storage systems. It is encouraging to see interest from international investors who have made large financial committments for such infrastructure projects in the country. Further, there is a visible pipeline of 50+ infrastructure projects to be lauched till 2029 across various sectors, including transport, WASH, urban infra and social infra.
Read more about key developments in Infrastructure and PPPs in Indonesia in our latest insight.
APRIL 2025
PLN, SEMBCORP TO DEVELOP SOLAR-BESS FOR INDONESIA’S FUTURE CAPITAL
State-owned utility Perusahaan Listrik Negara (PLN) and Singapore-based Sembcorp will develop Indonesia’s first co-located solar PV and battery energy storage system (BESS) to power Ibu Kota Nusantara (IKN), the country’s future capital on Kalimantan Island. The 50 MW solar plant, paired with a 14.2 MWh BESS, will be the first renewable energy project specifically developed for IKN.
Spanning 87 hectares, the facility will generate approximately 92.8 GWh of renewable energy. It will feature 114,420 bifacial solar PV modules (625 MWp), 126 lithium iron phosphate battery packs, and smart transformer stations. PLN, through its subsidiary PLN Nusantara Power, is the majority owner and offtaker, with project financing supported by Clifford Capital and SocGen.
POWERCHINA COMPLETES SOUTHEAST ASIA’S LARGEST FLOATING SOLAR PLANT IN INDONESIA
PowerChina has completed construction of the 192 MW Cirata floating photovoltaic plant on the Cirata Reservoir in West Java, Indonesia. The facility, developed in partnership with Perusahaan Listrik Negara (PLN) and Masdar, is the region’s largest floating solar power plant and began supplying power to the grid in November 2023. It generates 300,000 MWh annually—equivalent to the consumption of 50,000 homes—and currently contributes 25 % of Indonesia’s renewable energy supply.
Custom-designed anchoring systems and structural innovations were applied to accommodate the reservoir’s challenging underwater terrain and weather conditions. The project is expected to contribute to Indonesia’s emissions goals, with projected savings of 117,000 tonnes of coal annually. The success of the plant is expected to drive similar floating solar initiatives across Southeast Asia.
OASA, TIANYING TO BUILD IDR 2.6 TRN WTE PLANT IN SOUTH TANGERANG
PT Indoplas Energi Hijau, a subsidiary of PT Maharaksa Biru Energi (OASA), has partnered with China Tianying Inc (CNTY) to construct a waste-to-energy (WTE) facility at the Cipeucang Final Disposal Site in South Tangerang, Banten, Indonesia. The project, valued at IDR 2.6 Trn (USD 154.19 Mn), is set to begin operations in early 2026.
The facility will employ Moving Grate Incinerator (MGI) technology, licensed from CNTY, to process at least 1,100 tons of waste daily—1,000 tons of new waste and 100 tons of legacy waste. The plant is designed to operate without producing smoke or odours and has received international environmental certifications. The South Tangerang government officially awarded the project in March 2025.
The initiative aims to address the city’s mounting waste problem and reduce dependence on the overburdened Cipeucang landfill, while contributing to Indonesia’s renewable energy targets.
MASDAR AND INDONESIA SIGNS AGREEMENTS FOR TWO FLOATING SOLAR POWER PROJECTS
Masdar, the UAE’s clean energy leader, and PT PLN (Persero), Indonesia’s state-owned electricity company, have signed two agreements that will advance the development of floating solar power projects in Southeast Asia’s largest energy market.
1.The companies have signed a Memorandum of Understanding (MoU) to develop a 100 MW floating solar power plant at the Jatigede Dam reservoir in West Java, following Masdar's success in securing the lowest tariff in the Hijaunesia 2023 bidding program. The project, located at the site of the existing Jatigede hydropower plant—which currently operates two 55 MW units—is expected to begin development by 2025, with completion scheduled for 2027.
2.Masdar and PLN also signed a ‘Principles of Agreement’ to explore the potential expansion of Masdar’s 145MWac Cirata Floating Photovoltaic Power Plant, the first phase of which began operations in November 2023.
The agreements build on the UAE’s strong relationship with Indonesia and will contribute to the country’s goal of achieving net-zero emissions by 2050.
HYUNDAI MOTOR GROUP TO BUILD WASTE TO HYDROGEN ECOSYSTEM IN INDONESIA
South Korean-based Hyundai Motor Group has developed an action plan to establish a waste-to-hydrogen ecosystem in West Java Province, Indonesia. It has partnered with Indonesia’s Ministry of Energy and Mineral Resources, the Ministry of National Development Planning, and PT Pertamina (Persero) for this initiative.
Furthermore, Hyundai Motor Group will establish an on-site hydrogen refueling station using PT Pertamina’s existing compressed natural gas infrastructure. It is targeting the operational launch of the refuelling station by 2027. Low-carbon hydrogen produced from biogas sourced at the Sarimukti landfill near Bandung, which is the capital of West Java Province, will be supplied to the refuelling station.
Additionally, the Hyundai Motor Group plans to commence construction of the refuelling station in 2025 upon completion of a technical feasibility study on the Sarimukti landfill development. The plan for the initiative aligns with the objectives of Indonesia’s central government ministries and is reflected in its National Hydrogen and Ammonia Roadmap.
BARITO SECURES FINANCING TO EXPAND WAYANG WINDU GEOTHERMAL PROJECT, INDONESIA
PT Barito Renewables Energy (BREN), through subsidiaries, Star Energy Geothermal Pte Ltd (SEGP) and Star Energy Geothermal Wayang Windu Limited (SEGWWL) has signed a senior secured term facility agreement with an amount of USD 139.5 Mn. The financing will go towards capacity expansion of the Wayang Windu geothermal field in the Bandung region of West Java, Indonesia.
Sumitomo Mitsui Banking Corporation Singapore Branch and DBS Bank acted as the initial lenders and green loan coordinators for this financing agreement. The financing is divided as follows – SEGPL obtained a loan facility with a total amount of USD 114.5 Mn, while SEGWWEL obtained a separate loan facility with a total commitment of USD 25 Mn. The funds will finance the expansion of the Wayang Windu geothermal project in two ways:
Retrofitting of the existing Wayang Windu Units 1 and 2, aiming for an additional 18.4 MW
Construction of a new, 30-MW Wayang Windu Unit 3
Star Energy Geothermal had already previously announced their expansion plans, aiming for an additional 102.6 MWe of power generation capacity. Earlier this year, the company had announced the completion of testing of the 15.5 MW Salak binary geothermal power plant.
PT PLN AND PARTNERS LAUNCHES GREEN HYDROGEN COLLABORATION IN INDONESIA
PT PLN (Persero) has signed a joint study agreement with the Ministry of Transportation, PT HDF Energy Indonesia, and PT ASDP Indonesia Ferry to explore green hydrogen as a marine fuel. The initiative supports Indonesia’s Nationally Determined Contributions (NDC) and aims to reduce emissions from the maritime sector, starting with Eastern Indonesia’s ferry routes.
The collaboration aligns with the vision for energy independence and achieving Net Zero Emissions by 2060 or earlier. PLN has already produced 203 tons of green hydrogen through 22 Green Hydrogen Plants and aims to extend hydrogen adoption following progress in the electric vehicle ecosystem. PT HDF Energy Indonesia will support the project by deploying fuel cell technologies to advance Indonesia’s maritime decarbonization efforts.
MAY 2025
ACWA, PLN SECURE USD 60 MN FOR FLOATING SOLAR PROJECT IN INDONESIA
UK bank Standard Chartered and development finance institutions DEG from Germany and Proparco from France have agreed to provide EUR 52.8 Mn (USD 60 Mn) to finance the development, construction and operation of a 92-MWp floating solar plant in Indonesia.
The Saguling project is in West Java and is being developed by Saudi renewables developer ACWA Power Co and PLN Indonesia Power, a subsidiary of Indonesia’s state electricity company PT PLN. The plant is expected to reduce carbon emissions by at least 63,100 tonnes annually and to increase Indonesian solar electricity production by about 13 %.
The financing is being provided under the framework of Indonesia’s Just Energy Transition Partnership (JETP), an initiative aimed at supporting the country’s transition to clean power. The Indonesian JETP, launched in 2022, has already mobilised USD 1.2 Bn in addition to the freshly provided USD 60 Mn funding. The Saguling facility will help Indonesia achieve its goal to be with net-zero emissions by 2060. ACWA Power acquired a 49 % stake in the project in 2022.
PLANS ANNOUNCED TO DEVELOP MAKASSAR PORT AS THE NEW EXPORT HUB IN INDONESIA
The Government of Indonesia has announced plans to develop Makassar Port in South Sulawesi into a key export hub to complement existing gateways at Tanjung Priok and Surabaya. The initiative aims to capitalise on Makassar’s strategic location along key international shipping lanes to reduce logistics costs and support eastern Indonesia’s economic growth.
Currently operating at only 300,000 TEUs annually, the port has a total capacity of 2 million TEUs, with expansion plans in place as volumes increase. The construction of Makassar New Port, which cost an investment of IDR 5.4 Trn (USD 332.40 Mn), is expected to increase efficiency in logistics costs across the country.
V-GREEN TO DEPLOY 60,000 VINFAST EV CHARGERS IN INDONESIA WITH USD 300 MN INVESTMENT
V-Green, the global electric vehicle charging developer founded by VinFast’s Pham Nhat Vuong, has signed Memorandum of Understanding (MoU) with four strategic partners to deploy approximately 63,000 EV charging ports across Indonesia by the end of 2025. The rollout, targeted exclusively at VinFast electric vehicles, more than doubles the company’s previously announced target and represents a projected investment of USD 300 Mn.
The newly signed partners – Chargecore, Chargepoint, Amarta Group, and CVS – will focus their infrastructure rollout on key provinces, including Jabodetabek, Bandung, Surabaya, Makassar, Medan, Batam, Bali, and Kalimantan.
Chargecore alone has committed at least USD 30 Mn to the initiative in 2025, while the other three partners will serve as distribution and investment arms, each contributing around USD 5.3 Mn annually. V-Green will directly invest in 20 % of the sites, with the remaining 80 % executed through business cooperation contracts (BCCs), a model already in use since the company entered the Indonesian market.
V-Green’s growth strategy in Indonesia hinges on local partnerships and attractive investor terms, including a guaranteed 25 % annual return during the first three years and a power purchase rate of 750 rupiah/kWh. These commercial terms have drawn strong interest from domestic and international stakeholders, reflecting Indonesia’s growing appeal as a green transport market. The partnerships mark a decisive step in building a modern EV infrastructure network aligned with the region’s sustainable development goals.
APL LOGISTICS OPENS FIRST-OF-ITS-KIND FLOW-THROUGH CENTER IN JAKARTA
APL Logistic located in North Jakarta’s KBN Marunda Industrial Zone, APL Logistics’ new facility addresses the need for smarter, more sustainable industrial growth, in line with Indonesia’s increasingly significant role in international trade. Having established its presence in Indonesia since 1999, APL Logistics’ thriving business over the past five years has clearly demonstrated the potential of Indonesia’s market and the enduring resilience of its people.
The 32,000-square-meter facility is strategically positioned as a logistics hub with access to key transportation routes from Marunda, including the nearby Tanjung Priok Port, which is less than 10 kilometers away. The site, dubbed the “APL Logistics Marunda Flow Center,” also offers connectivity to rail infrastructure via Kampung Bandan Station (approximately 19.3 kilometers from the site) and to air freight services through Soekarno–Hatta International Airport (36 kilometers away).
JUNE 2025
JAKARTA COMMITS INITIAL CAPITAL FOR MRT EXPANSION TO TANGERANG AND SOUTH TANGERANG
Jakarta’s administration has pledged to provide the initial funding needed to extend the Mass Rapid Transit (MRT) system beyond the city to Tangerang and South Tangerang in Banten province in Indonesia. This move aims to improve the integration of Greater Jakarta’s public transport network and ease traffic congestion.
Currently, the MRT’s North-South line runs from South Jakarta’s Lebak Bulus Station to Central Jakarta’s Bundaran Hotel Indonesia Station, with an ongoing extension toward Kota Station in West Jakarta. Governor Pramono Anung expressed optimism that the MRT could eventually reach Tangerang, South Tangerang, and other strategic areas like Tanjung Priok and Ancol, which could help reduce congestion in Jakarta.
Jakarta’s offer of initial capital support is contingent on business-to-business feasibility assessments and highlights the city’s commitment to expanding regional transit infrastructure.
PLANS ANNOUNCED FOR 69.5 GW OF NEW GREEN ENERGY IN INDONESIA BY 2034
Indonesia’s Ministry of Energy and Mineral Resources has launched its 2025–2034 Electricity Supply Business Plan (RUPTL), aiming to add 69.5 GW of new power generation capacity—76 % of which will come from renewable sources and storage systems. The initiative aligns with the country’s 2060 Net Zero Emission target and addresses growing urban energy demands.
In the first phase (2025–2030), 27.9 GW will be installed, including 12.2 GW from renewables, 9.2 GW from gas, and 3.5 GW from coal (mainly projects already underway), along with 3 GW in storage systems. The second phase (2030–2034) will focus even more on clean energy, adding 37.7 GW in renewables and storage, while limiting thermal additions to 3.9 GW. The mix includes 17.1 GW of solar, 11.7 GW of hydro, 7.2 GW of wind, 5.2 GW of geothermal, 0.9 GW of bioenergy, and two 250 MW nuclear reactors in Sumatra and Kalimantan.
The plan also includes modernising Indonesia’s power grid with 48,000 km of new circuits and 108,000 MVA in substations and expanding rural electrification through the Village Electricity Program to reach 780,000 households in 5,758 villages. Estimated at USD 182 Bn, the project expects 73 % of generation investment from private firms and IPPs, with the remainder led by PT PLN. The RUPTL represents a major national strategy integrating clean energy, infrastructure modernisation, and inclusive development.
UK–INDONESIA PARTNERSHIP EXPLORES LRT DEVELOPMENT IN SURABAYA
The East Java Provincial Government and the UK Government are collaborating on a feasibility study for a Light Rapid Transit (LRT) system connecting Surabaya with nearby cities, including Gresik, Bangkalan, Mojokerto, Sidoarjo, and Lamongan. The study is set to begin in July 2025.
The initiative is supported by the UK’s Green Cities, Infrastructure and Energy Programme (GCIEP), with technical input from Transport for London (TfL) and consultancy services from Mott MacDonald and PwC. While investment or financing terms have yet to be disclosed, the effort reflects a shared goal of advancing transit-oriented development (TOD) and promoting low-emission urban transport.
This LRT system is expected to tackle traffic congestion, pollution, and unequal access to mobility across the Surabaya metropolitan area. Beyond environmental benefits, the project could boost local economies, job creation, and regional connectivity, aligning with Indonesia’s broader goals for sustainable urban development.
HDF ENERGY SIGNS MOUS TO SPEED UP HYDROGEN POWER PROJECTS IN INDONESIA
Hydrogene de France SA (EPA: EDF), or HDF Energy, has signed agreements to accelerate the development of its Renewable green hydrogen power plants in Indonesia. A tripartite memorandum of understanding (MoU) was signed with Indonesia’s national electricity operator PLN and state-owned infrastructure financier PT SMI.
The agreement seeks to identify innovative financing mechanisms to support the 23 Renewable projects worth EUR 2.3 Bn (USD 2.6 Bn) that HDF is currently developing in Indonesia. HDF also signed a separate MoU with the Governor of East Nusa Tenggara Province, where eight of the projects are located, to reinforce local cooperation and speed up deployment.
These agreements represent a major step forward in the development of our Renewable power plants in Indonesia. They demonstrate the relevance of our French technology in addressing clean electrification challenges in isolated island regions.
HDF’s Renewable plants integrate intermittent renewables like solar and wind with on-site energy storage in the form of green hydrogen to generate power 24/7. The excess green hydrogen can also be used to decarbonise regional maritime transport. For both Renewable and maritime projects, HDF plans to use fuel cells produced at its factory in Bordeaux, France. TotalEnergies also signed a deal for a major solar project with storage in Indonesia.
INDONESIA’S 2029 INFRA BUDGET FACES USD 46 BN GAP
Indonesia’s Public Works Ministry has projected an IDR 753 Trn (USD 46.14 Bn) funding shortfall to meet the country’s infrastructure targets outlined in the 2025–2029 National Medium-Term Development Plan (RPJMN). Of the total estimated requirement of IDR 1,905.3 Trn (USD 116.74 Bn), the national and regional budgets combined can only cover around 60.5 %. The remaining 39.5 % is expected to be met through alternative financing strategies.
The ministry plans to focus spending on water resources, roads, bridges, and housing, with specific goals including dam rehabilitation, improved road conditions, and expanded water and sanitation infrastructure. To bridge the funding gap, the government is promoting public-private partnerships, blended finance, and asset securitisation. Officials emphasised the need for collaboration across sectors, aiming to attract more private and foreign investment to support inclusive and sustainable infrastructure development.
WORLD BANK APPROVES USD 2.13 BN GREEN FINANCING FOR INDONESIA
The World Bank has approved a total of USD 2.13 Bn in blended financing for Indonesia to support its push toward a low-carbon, climate-resilient economy. The financing package combines loans and guarantees aimed at accelerating clean energy adoption, reducing carbon emissions, and enhancing infrastructure development. It includes funding for transmission infrastructure, renewable energy expansion, disaster preparedness, and improved access to healthcare and basic services.
The package aligns with the Government of Indonesia’s Just Energy Transition Partnership (JETP) and its broader commitment to achieve net-zero emissions (NZE) by 2060. Among the programs supported are initiatives to modernise the electricity grid, phase out coal power, and expand the use of solar, geothermal, and hydroelectric power. The financing is expected to catalyse private sector investment while improving resilience to climate shocks, particularly in vulnerable rural and coastal areas.
This is one of the largest climate-focused development packages for Indonesia in recent years, reinforcing the country’s strategic importance in Southeast Asia’s energy transition.
INDONESIA SEEKS USD 5.5 BN FOR NINE INFRASTRUCTURE PROJECTS
Indonesia’s Public Works Ministry has called for domestic and international investment in nine Public-Private Partnership (PPP) model infrastructure projects worth IDR 90 Trn (around USD 5.5 Bn).
The projects include five for water resource management, three road developments, and one waste treatment facility. These are part of a broader pipeline of 55 PPP projects. To meet its 2025–2029 infrastructure goals, the Public Works Ministry estimates it will need IDR 1,900 Trn (USD 116.41 Bn) in funding—60 % from the state budget, with the rest expected from private and alternative sources.
Between 2020 and 2024, PPPs contributed 21.4 % IDR 440.4 Trn (USD 26.98 Bn) of infrastructure financing needs. Minister Hanggodo encouraged continued innovation in funding strategies such as blended finance and asset securitisation to sustain long-term development. So far, the Directorate General of Infrastructure Financing has overseen 15 PPP agreements in various sectors.
List of Nine Infrastructure Projects
1. Manggar Landfill, Balikpapan, East Kalimantan
2. Gilimanuk–Mengwi Toll Road, Bali
3. Pejagan–Cilacap Toll Road, Central Java
4. Sentul South–Karawang West Toll (JORR 3), West Java
5. PLTMH Way Sekampung 5.4 MW, Lampung
6. PLTMH Tapin 3.32 MW, South Kalimantan
7. PLTMH Way Cipanas 3 MW, West Java
8. PLTMH Leuwikeris 7.4 MW, West Java
9. PLTMH Karalloe 4.32 MW, South Sulawesi
PRIVATE SECTOR EYES JAKARTA–SURABAYA HSR EXPANSION
Indonesia’s Transport Ministry has announced growing private interest in extending the country’s high-speed rail (HSR) from Jakarta to Semarang or Surabaya. Several companies, including those involved in the existing Jakarta–Bandung HSR (Woosh), have expressed interest in joining the next phase of the project.
Additionally, the government is considering two potential routes—via Java’s southern or northern corridor. A final decision will be based on ongoing technical and feasibility studies, prioritising efficiency and connectivity for both passenger and freight.
Despite being in the early planning stages, Suntana confirmed that the HSR expansion would proceed, stressing the need for sustainable and low-emission infrastructure. The government is encouraging private sector participation through Public-Private Partnerships (PPPs) model, citing fiscal constraints in funding large-scale transport projects.
The success of the Woosh line is being used as a model for broader HSR development, to enhance intercity connectivity and drive economic integration across Java.
LONGI PLANS SOLAR FACTORY IN INDONESIA WITH PERTAMINA
Chinese solar panel manufacturer LONGi has launched a strategic project to establish a solar panel manufacturing facility in Indonesia with an annual capacity of 1.6 GW in partnership with a unit of Indonesian state-owned energy company Pertamina.
Pertamina announced the launch of the project as well; the annual capacity will be 1.4 GW, which will significantly boost Indonesia's current solar panel production capacity of 1.6 GWp per year. The facility will be in Deltamas, West Java, and will use LONGi's Hybrid Passivated Back Contact (HPBC) 2.0 technology.
The Chinese company's collaboration with Pertamina New & Renewable Energy will strengthen Indonesia's renewable energy supply chain and help meet the growing demand for solar PV modules in both the domestic market and across Southeast Asia. It noted that Indonesia aims for 17.1 GW of new PV installations over the next 10 years.
List of key transactions - Indonesia Q2 2025
Source: YOG INFRA, Public Information
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