Infrastructure & PPPs in Indonesia - Q4 2025 Update

YOG INFRA
6 hours ago
15 min read

Indonesia maintained a clean-energy momentum in Q4-2025, driven by large-scale renewable power, digital infrastructure and green industrial investment. The quarter was led by commitments for 11.7 GW of hydropower under the PLN–J&F partnership, 1.8 GW of new solar and wind mobilised through ADB-backed financing, and a USD 2.3 Bn clean-energy hub in Karimun, alongside the development of a USD 84 Mn hyperscale data centre in Batam. Indonesia also raised USD 3 Bn to fund waste-to-energy plants across 33 cities and advanced plans to expand Jakarta’s LRT network, reinforcing growing investor confidence and Indonesia’s push toward its net-zero 2060 target.

Read more about key developments in Infrastructure and PPPs in Indonesia in our latest insight.

OCTOBER 2025

JAKARTA PLANS MAJOR LRT NETWORK EXPANSION TO BOOST MULTIMODAL CONNECTIVITY

The Jakarta Provincial Government has unveiled plans to significantly expand the Jakarta Light Rail Transit (LRT) network, connecting Dukuh Atas to Pasar Baru, Kota Tua, and North Jakarta.

The proposed development will position Dukuh Atas as a central multimodal transport hub, integrating the LRT, Commuter Line (KRL), Mass Rapid Transit (MRT), and Transjakarta networks. This hub is expected to provide seamless and weather-protected connections for commuters, including direct access to Soekarno–Hatta International Airport.

Currently in the planning phase, authorities are finalising two alignment options — a North Jakarta route or an extension from Manggarai to Dukuh Atas — before construction priorities are set. The expansion complements Jakarta’s dual LRT systems: LRT Jabodebek, which links Bekasi, Cibubur, and Dukuh Atas, and LRT Jakarta, which runs from Kelapa Gading to Pegangsaan Dua, with an ongoing extension to the Velodrome.

INDONESIA LAUNCHES INFRASTRUCTURE PROJECT FACILITATION OFFICE TO BOOST PPP INVESTMENT

The Government of Indonesia has launched the Infrastructure Project Facilitation Office (IPFO) under the Coordinating Ministry for Infrastructure and Regional Development (Kemenko Infrabangwil) to enhance private sector participation in national infrastructure projects. The initiative aims to streamline investment processes, bridge coordination between government agencies and investors, and promote Public–Private Partnerships (PPPs).

The IPFO will function as a centralized platform assisting investors and project owners in addressing regulatory procedures, prioritizing projects, and expediting implementation. It will also coordinate with PT Sarana Multi Infrastruktur (SMI) and PT Penjaminan Infrastruktur Indonesia (PII) to provide standardised project documentation and risk mitigation frameworks.

Indonesia’s infrastructure investment needs for 2025–2029 are IDR 10,300 Trn (USD 643.8 Bn), with the private sector currently contributing only 28%. The IPFO is expected to close this funding gap through innovative financing schemes such as land value capture, asset recycling, and limited concession models.

USD 3 BN RAISED THROUGH PATRIOT BOND TO FUND WASTE-TO-ENERGY PROJECTS BY DANANTARA

State asset fund Danantara has raised IDR 50 Trn (USD 3 Bn) through the issuance of its inaugural patriot bond, a low-coupon instrument designed to channel long-term financing into renewable energy, waste-to-energy and other strategic projects. Investor details remain confidential; the funds are fully secured for the rollout of large-scale waste-to-energy facilities across the country in support of the government’s target of achieving net-zero emissions by 2060.

A waste-to-energy plant burns trash to generate steam that powers turbines. Danantara is planning to set up such facilities in 33 heavily polluted cities, possibly starting with the metropolis of Jakarta and gradually reaching Bali. The plan is expected to lessen the sub-national government’s financial burden as they have been paying landfills to manage the waste all this time.

State-run utility firm PLN will purchase the power generated by these plants at a flat tariff of 20 cents (USD 0.20) per kilowatt-hour. Danantara’s estimates put a price tag of between IDR 2 Trn and IDR 3 Trn (USD 120 Mn – USD 180 Mn) on the conversion of 1,000 tons of waste. These costs also derive from the investments required to set up the supporting infrastructure. Early estimates show that processing 1,000 tons of trash can generate 15 megawatts.

GIZ, NEUMAN & ESSER AND HDF ENERGY TO DECARBONISE INDONESIA’S FERRY FLEET

The German International Cooperation Society (GIZ), Neuman & Esser Southeast Asia (NEA SEA), and France-based HDF Energy have signed a Memorandum to decarbonise Indonesia’s inter-island ferry fleet and support the growth of the country’s green hydrogen ecosystem. The initiative is part of the International Hydrogen Ramp-up Program (H2Uppp), commissioned by Germany’s Federal Ministry for Economic Affairs and Energy (BMWE).

The partnership will explore technical and economic pathways for hybrid hydrogen-powered ferries, assessing vessel design, hydrogen supply infrastructure, regulatory frameworks, and viable business models for large-scale deployment in Indonesia’s maritime transport sector. The study results are expected in 2026 and will be guiding potential pilot projects and investment partnerships.

INDONESIA AND BRAZIL TO DEVELOP 11.7 GW HYDROPOWER CAPACITY

PT PLN (Persero), Indonesia’s state-owned electricity company, has signed a memorandum of understanding (MoU) with Brazilian investment firm J&F SA to jointly develop hydroelectric power plants (PLTA) with a total capacity of 11.7 GW. The partnership aligns with Indonesia’s Electricity Supply Business Plan (RUPTL) 2025–2034, aimed at advancing the country’s renewable energy transition.

Partnership will accelerate Indonesia’s hydropower development and support national decarbonization goals. The initiative reinforces Indonesia’s ambition to become a regional leader in renewable energy while strengthening its bilateral ties with Brazil in sustainable growth and clean technology.

NEUTRADC SIGNS 90MVA ELECTRICAL SUPPLY AGREEMENT FOR BATAM DATA CENTER

Indonesian electrical utility PT PLN Batam has signed an electrical purchase agreement with NeutraDC (PT Teknologi Data Infrastructure), an Indonesian data center firm, to supply power to the company’s planned data center in Batam, Indonesia. The deal will see PLN Batam deliver up to 90MVA of medium-voltage electricity to the data center between 2025 and 2028. The contract will run for a minimum of five years, with PLN Batam committing to provide “stable, safe, and high-standard” power to the facility.

The data center is situated at the Kabil Industrial Estate, located east of the city. The project is developed through a joint venture between Singtel, Telkom Indonesia, and Medco Power with total investment of IDR 1.4 Trn (USD 84 Mn). Spanning eight hectares, the project will be constructed over three phases and is expected to have a capacity exceeding 60MW at full buildout. The initial phase of the project will deliver around 20MW and is expected to be powered through renewable energy developed by Medco Power. In Q3-2025, Neutra DC signed a deal with Medco Power to deploy onsite solar at the site. The data center will be majority owned by Telkom Indonesia - under the NeutraDC name - while Singtel and Medco Power will be minority shareholders.

EQUATOR RENEWABLES, CREI PLAN 900-MWP SOLAR INDONESIA-SINGAPORE LINK

Singapore-based renewable energy firm Equator Renewables Asia (ERA) has partnered with China’s CRE International Co Ltd (CREI) to develop a 900-MWp solar and 1.2-GWh battery energy storage project in Indonesia’s Riau Islands, aimed at exporting clean power to Singapore. The multi-billion-dollar project, backed by CREI, a subsidiary of China National Nuclear Corporation (CNNC), is expected to generate around 830 GWh of electricity per year once completed in 2029. CREI will invest in, construct and operate the generation assets, while ERA will manage transmission and electricity off-take coordination.

The cooperation framework agreement between them marks the first Chinese investment in Singapore’s cross-border low-carbon electricity initiative and the first project announced under ERA’s Singapore-Indonesia renewable energy programme. ERA is one of six companies holding conditional licences from Singapore’s Energy Market Authority (EMA) to import clean energy into the city state. Its conditional licence specifies it can import 400 MWac of renewable electricity via subsea cable. Singapore plans to import about 6 GW of low-carbon electricity by 2035, covering roughly a third of its future energy needs as part of its goal to reach net-zero emissions by 2050.

130 MW SOLAR POWER PLANT PROJECT IN BALI

PT Futura Energi Global Tbk. (FUTR) signed a strategic partnership with Zhejiang Energy PV-Tech Co., Ltd and PT Hypec International for the development of a 130-Megawatt (MW) Solar Power Plant (PLTS) project in Bali. The collaboration involves two large Chinese companies, both of which have strong financial capabilities and technological experience in the renewable energy sector. This collaboration marks the first step in FUTR's expansion in the renewable energy sector, in line with the government's target of achieving Net Zero Emissions by 2060.

The solar power plant project in Bali has a quota of around 130 megawatts (MW) and will be developed in stages. FUTR is coordinating with the Bali Regional Government (Pemda) to determine construction locations that align with spatial planning requirements and local potential. FUTR will establish a dedicated subsidiary to handle the operation and maintenance of the solar power plant project. The target for completion of the documentation, feasibility study, and permitting stages is kept for H1-2026, allowing the project to enter the construction phase in H2-2026.

Project will comply with the tariff provisions stipulated in Presidential Decree No. 112 of 2022 concerning the Acceleration of Renewable Energy Development. Investment must comply with the government-regulated electricity tariffs.

INDONESIA AIMS TO SELL 13.4 BILLION TONNES OF CARBON CREDITS TO GLOBAL BUYERS

Indonesia has announced intentions to sell 13.4 billion tonnes of carbon dioxide equivalent credits to global buyers, establishing one of the world’s most ambitious carbon market efforts. The move is likely to attract billions of dollars in international investment while also strengthening the country’s climate commitments. With huge tropical forests and renewable energy projects, Indonesia hopes to use natural resources to reduce global emissions while creating green jobs. The credits will be granted via Indonesia’s national carbon registry and certified by international certifying bodies to maintain transparency.

Indonesia’s carbon exchange, which was opened in 2023, has already seen significant trading volume, and the government intends to align future transactions with the Paris Agreement. Credit sales revenue will go towards forest protection, sustainable energy initiatives, and community development. By selling verified credits, Indonesia hopes to establish itself as a key player in the global carbon market. The program also backs its aim to reduce emissions by up to 43% by 2030 and reach net-zero by 2060, demonstrating how climate goals may be balanced with economic opportunities.

ADB APPROVES USD 180 MN LOAN FOR GEOTHERMAL POWER GENERATION PROJECT

The Asian Development Bank (ADB) has approved USD 180 Mn loan as the second additional financing to support PT Geo Dipa Energy (GDE)—an Indonesian state-owned company—to further boost the country’s geothermal electricity generation. The Geothermal Power Generation Project supports the construction and commission of two geothermal plants each with a capacity of 55 MW in Java Island. The project will provide environmentally friendly base-load electricity to the Java–Bali electricity grid, reducing CO2 emissions by more than 550,000 tons per year. This additional financing will focus on supporting project completion against increasing costs and sustaining progress toward the country’s clean energy and climate goals.

Despite having the world’s largest geothermal potential (29 GW) and the second-largest installed capacity (2.1 GW), Indonesia’s geothermal development remains slow due to the high cost, long duration, and high risk of exploration. Approved in 2020, the project supports GDE in geothermal exploration, development, and power generation while strengthening its capacity to plan and implement projects and conduct government-supported drilling to attract private investment.

NOVEMBER 2025

INDONESIA TO ADD 130 MW CAPACITY TO TOLO WIND FARM

The Government of Indonesia has plans to expand its Tolo Wind Farm in South Sulawesi to strengthen the country’s renewable energy capacity. Construction is expected to begin in late 2026, adding approximately 130 megawatts (MW) to the national energy mix.

The Tolo Wind Farm, located about 6 km inland from the South Sulawesi coast, began operations in 2019 with 20 turbines across 60 hectares, generating around 72 MW—enough to supply power to roughly 320,000 households. The turbines use direct drive technology, reducing mechanical complexity by eliminating gearboxes, and can operate in low-wind conditions requiring minimum speeds of 3 m/s. Maintenance is strategically scheduled during low-wind months to maximise output during peak conditions.

The project received financial support from the Asian Development Bank (ADB), which provided a USD 56 Mn loan for the initial phase. ADB’s backing considered the project’s long-term viability, technical soundness, and adherence to environmental and social safeguards, including biodiversity protection, resettlement, and community engagement. Operator Vena Energy emphasises that the expansion will harness the region’s strong wind resources while ensuring sustainable and efficient power generation.

INDONESIA’S RE CAPACITY PROJECTED TO REACH 38.1 GW BY 2035

Indonesia’s total renewable power capacity is projected to reach 38.1 GW by 2035. The projection represents significant growth from the estimated 8.4 GW of installed renewable capacity in 2024, driven primarily by expanding solar PV and onshore wind development supported by national energy policies and updated investment frameworks.

The analysis indicates that solar capacity is expected to increase from 0.9 GW in 2024 to 23.2 GW by 2035, supported by floating and utility-scale solar projects, rooftop solar programmes, and policy measures such as feed-in mechanisms and updated net-metering regulations. Onshore wind capacity is forecast to grow from 0.15 GW to 2.6 GW, supported by competitive tenders and hybrid renewable developments in Sulawesi and East Nusa Tenggara. Geothermal capacity is projected to rise from 2.6 GW to 5.5 GW, backed by fiscal support through the PT SMI Geothermal Fund.

Despite strong renewable growth, Indonesia is expected to remain reliant on thermal generation through 2035. Coal-fired capacity is projected to increase from 55.6 GW in 2024 to 61.4 GW due to existing contracts and domestic reserves. Gas-fired capacity will also expand from 29.1 GW to 36 GW to provide grid stability and flexibility as renewable penetration rises.

ADB APPROVES USD 470 MN LOAN TO INDONESIA’S PLN FOR CLEAN ENERGY EXPANSION

The Asian Development Bank (ADB) has approved a USD 470 Mn results-based loan for Indonesia’s state utility PLN to advance the first phase of the Accelerating Indonesia’s Clean Energy Transition Program. The initiative focuses on scaling solar and wind capacity, strengthening grid infrastructure across Java–Madura–Bali, Sumatra and Sulawesi, and improving PLN’s institutional capacity to manage a rapidly expanding renewable portfolio. The programme could avoid up to 2.5 million tonnes of CO2 emissions annually and support long-term regional interconnection under the ASEAN Power Grid vision.

The financing package includes USD 470 Mn from ADB’s ordinary capital resources, supplemented by USD 30 Mn from ADB-administered funds and a USD 3 Mn GEAPP grant. The programme is expected to catalyse over USD 1 Bn in private investment to develop around 1,800 MW of utility-scale solar and wind projects between 2026 and 2031. It aligns with Indonesia’s RUPTL 2025–2034, which targets 69.5 GW of new capacity—76% from renewables—and contributes to the national goal of sourcing 41% of electricity from clean energy by 2040.

Beyond infrastructure, the programme supports gender inclusion through recruitment and training pathways for women in technical and operational roles. Environmental and social safeguards, spatial screening and climate-vulnerability assessments will guide implementation. This initiative strengthens Indonesia’s long-term energy security and supports the country’s aspirations for sustainable, high-income economic growth by 2045.

JORDAN PROPOSES USD 1.3 BN INVESTMENT PACKAGE IN INDONESIA

Jordan has proposed a USD 1.3 Bn investment package in Indonesia covering gas pipelines, toll road development, and logistics facilities, Investment and Downstream Industry. The gas pipeline project is valued at roughly USD 1 Bn, while the toll road development is estimated at USD 300 Mn. The logistics project’s value was not disclosed but is considered a priority.

Indonesia and Jordan already cooperate in phosphate-based fertiliser production through a joint venture in Gresik, where Jordan holds a 50% stake. The partnership, valued at USD 250 Mn, generates about USD 20 Mn in annual returns, with plans to expand the venture to strengthen Indonesia’s fertiliser supply chain. Jordan could serve as a gateway to Middle Eastern markets, while Indonesia positions itself as a hub for Jordanian trade and investment in Southeast Asia.

ASLAN ENERGY TO BUILD USD 2.3 BN CLEAN ENERGY HUB IN INDONESIA

Singapore-based Aslan Energy Capital signed a Heads of Agreement with the Government of Karimun Regency, Riau Islands, Indonesia, located at the crossroads of Singapore, Malaysia, and Indonesia. This agreement marks a pivotal step in the establishment of MU CITY — a City of Dynamic Innovation in Energy, Mobility, and Urbanization, designed to accelerate Southeast Asia’s transition toward a low-carbon, digital, and inclusive future.

Signed in collaboration with the Karimun Regency Government, the agreement affirms a shared commitment to building a next-generation integrated industrial and innovation ecosystem. MU CITY is now firmly positioned as a regional gateway for clean energy, green manufacturing, advanced e-mobility, and data-driven intelligence — supporting Indonesia’s national roadmap for renewable energy and digital transformation. The MU CITY development represents an estimated USD 2.3 Bn investment over the next three years, making it the largest single investment in Karimun to date.

Spanning 4,000 hectares, MU CITY will be powered by up to 2 gigawatts (GW) of solar power and an additional 2 GW of gas-based power, making it one of Southeast Asia’s largest integrated sustainable energy ecosystems. A major portion of this capacity will power the local industrial zones, data campuses, and mobility manufacturing clusters within MU CITY, while the remainder will be allocated for clean energy exports to ASEAN nations — reinforcing Indonesia’s role as a regional energy provider.

GCL SIGNS TWO 100 MW SOLAR PROJECTS WITH PLN IP IN INDONESIA

GCL Energy Technology, operating via its subsidiary GCL Intelligent Energy (Suzhou), has signed agreements with Perusahaan Listrik Negara Indonesia Power (PLN IP) to develop two 100 MW solar projects in the country, marking a significant step in its international expansion. The projects, encompassing the Banyuwangi ground-mounted solar installation and the Gajah Mungkur floating solar facility, align with Indonesia’s Hijaunesia plan for renewable energy sources.

Banyuwangi project involves the development, construction, operation, and maintenance on a Build-Own-Operate basis of a greenfield ground-mounted solar photovoltaic power plant with total project cost estimated to be USD 101 Mn. The Gajah Mungkur Project involves the development, construction, operation, and maintenance on a Build-Own-Operate basis of a greenfield floating solar photovoltaic power plant with a capacity of 100-megawatts, located in Gadjah Mungkur Reservoir Wonogiri Regency, Central Java Province, Indonesia with estimated cost of USD 96 Mn.

These projects are key initiatives under Indonesia’s Hijaunesia vision, the government’s renewable energy programme, reflecting the partnership between GCL Group and PLN. Once operational, the solar facilities will bolster Indonesia’s transition to renewable energy and contribute to reliable clean power.

DECEMBER 2025

IDR 3,000 TRN FOR INDONESIA’S NATIONAL CLEAN-ENERGY TRANSITION

Indonesia’s Ministry of Energy and Mineral Resources has announced an estimated IDR 3,000 Trn (USD 179 Bn) investment requirement to achieve full reliance on renewable-energy-based electricity. The amount covers capital for power plant construction, substations, transmission networks, distribution infrastructure, and other supporting systems. The ministry noted that mobilising the necessary financing will require cooperation across government, utilities, financiers, and the private sector.

Under State Utility PLN’s Electricity Supply Business Plan (RUPTL) 2025–2034, Indonesia plans to add 69.5 GW of new generation capacity, 47,758 circuit-km of transmission lines, and 107,950 MVA of substations. Clean-energy sources will account for 76% (52.9 GW) of the planned additions, including 42.6 GW of renewable energy and 10.3 GW of energy-storage systems. The remaining 16.6 GW will come from fossil-fuel-based power plants.

The energy transition is driven by Indonesia’s estimated 3,500 GW renewable-energy potential and the need to reduce reliance on fossil fuels. The Ministry of Energy and Mineral Resources and PLN are leading the implementation of the clean-energy roadmap, which targets large-scale capacity expansion, improved grid reliability, and long-term sustainability. The government reiterated the importance of multi-stakeholder collaboration to meet investment needs and deliver national energy goals.

INDONESIA REQUIRES IDR 10,300 TRN INFRASTRUCTURE INVESTMENT THROUGH 2029

The Government of Indonesia will require IDR 10,303 Trn (USD 617 Bn) in infrastructure investment between 2025 and 2029 to support its target of achieving 8% economic growth, according to the Coordinating Ministry for Infrastructure and Regional Development. The funding requirement is 66% higher than the IDR 6,203 Trn (USD 371 Bn) invested in infrastructure between 2014 and 2024.

The government is expected to contribute 70% while the private sector is projected to provide 30%. To meet the target, annual infrastructure investment must triple compared with the 2019–2024 period. State budget funding alone will be insufficient, requiring greater reliance on private capital and alternative financing mechanisms.

As of January to September 2025, construction has not ranked among the top five sectors for realised investment, with inflows below IDR 105.2 Trn (USD 6.3 Bn). This shortfall underscores the challenge of scaling private participation, especially as infrastructure is expected to account for 32.4% of Indonesia’s national investment target for 2025, set at IDR 1,905.6 Trn (USD 114 Bn).

V-GREEN PARTNERS WITH TELKOM PROPERTY TO ACCELERATE GREEN INFRASTRUCTURE DEVELOPMENT IN INDONESIA

V-Green, a Vietnam-based electric vehicle charging infrastructure developer, has signed a memorandum of understanding with Telkom Property, a subsidiary of the multinational digital telecommunications company Telkom Indonesia, to accelerate green infrastructure development. This collaboration represents a pivotal strategic milestone in advancing a fully integrated VinFast electric vehicle ecosystem in Indonesia and across Southeast Asia.

Pursuant to the MOU, V-Green will have access to and may utilize a significant number of parking lots in various properties across Indonesia – including buildings, vacant land, and other strategic commercial areas – particularly those managed by Telkom Property. These properties are intended to be utilized in support of V-Green’s and its affiliates’ business activities, including the development of electric vehicle charging stations, parking facilities and other infrastructure supporting green transportation modes such as electric taxis.

Telkom Property, a subsidiary of the multinational digital telecommunications group Telkom Indonesia, plays a pivotal role in managing, optimizing, and developing the group’s nationwide real estate portfolio. With extensive experience and a broad asset base across Indonesia, the company is a key enabler in delivering modern urban infrastructure solutions that support the country’s evolving needs.

INDONESIA SETS 2032 TARGET FOR FIRST NUCLEAR POWER PLANT

The Government of Indonesia has formally set 2032 as the target year for the commissioning of its first nuclear power plant, marking a major shift in national energy policy and the inclusion of nuclear power in the country’s long-term energy mix for the first time. The move ends decades of intermittent exploration and establishes a clear pathway for nuclear development as part of Indonesia’s transition toward a low-carbon energy system.

Under the government’s roadmap, nuclear power capacity is projected to reach 45 GW by 2060, including 35 GW for electricity generation and 9 GW for hydrogen production. The plan confirms that the first nuclear unit, with a capacity of 250 MW, will begin operations in 2032, followed by a second unit of similar size. To support the nuclear supply chain, the government has also established a dedicated agency named Mineral Industry Agency (MIA) to manage uranium, thorium, and other strategic minerals.

Electricity demand in Indonesia is expected to reach 1,813 terawatt-hours by 2060, requiring around 443 GW of net-capable capacity. Renewables are projected to account for 42% of generation, supported by 34 GW of energy storage, creating a need for stable baseload power to maintain grid reliability. Nuclear power is being positioned to fill this role due to its low emissions and ability to provide continuous output compared with weather-dependent sources such as solar and wind.

List of key transactions - Indonesia Q4 2025

Source: YOG INFRA, Public Information

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.

For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com

#infrastructure #update #PPP #Indonesia