Indonesia, Japan Advance $2B Infrastructure Projects
JAKARTA, investortrust.id – Indonesia has secured financial support from Japan for the development of 14 national infrastructure projects, with a total loan commitment of $2.005 billion, or Rp 32.84 trillion, in a move that strengthens Japan’s role as a key partner in Indonesia’s infrastructure development, ensuring long-term benefits for economic growth and disaster resilience.
The agreement was announced by Vice Minister of Public Works Diana Kusumastuti following her meeting with Vice Minister for Engineering Affairs Masayoshi Hirose from Japan’s Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) at the Ministry of Public Works office in Jakarta on Tuesday, Feb. 25, 2025.
JICA Loans to Fund Key Infrastructure Projects
"We welcome Vice Minister Hirose’s visit. Despite the ongoing restructuring of our ministry, we remain committed to strengthening cooperation with the Japanese government to support sustainable infrastructure development that benefits the broader public," Diana stated in a press release on Wednesday, Feb. 26, 2025.
She detailed that 10 out of the 14 projects will be funded by Japan International Cooperation Agency (JICA) loans amounting to $1.65 billion. These projects focus on irrigation, coastal and river management, roads, and sanitation sectors.
Meanwhile, the remaining four projects are still in the pipeline and are currently being reviewed by the National Development Planning Ministry (Bappenas) to ensure alignment with national priorities.
Among the four projects to be financed by JICA, Diana highlighted:
1. Technical preparation for the Sutami Dam improvement in the Brantas watershed – $21.1 million
2. Volcanic Disaster Risk Reduction Sector Loan – $174 million
3. Integrated Urban Flood Management Project for Greater Jakarta (Jabodetabek) – $95.32 million
4. Technical preparation for the Padang-Pekanbaru Toll Road Phase 1 and 2 – $64.9 million
Strengthening Infrastructure Cooperation and Knowledge Exchange
Diana also expressed appreciation for Japan’s support during the 11th High-Level Meeting at the Ministry of Public Works, emphasizing that the forum serves as a key platform for knowledge and technology transfer in infrastructure. Topics covered in the discussions included reclaimed asphalt technology, sabo technology for landslide and sediment control, and flood risk mitigation strategies for the new capital, Nusantara (IKN).
"I extend my congratulations on the success of this forum. I’ve heard that it has been highly beneficial in exchanging insights and infrastructure technologies. I encourage all personnel at the Ministry of Public Works to learn from Japan’s approach to information and technology in infrastructure development," said Diana, who previously served as Director General of Human Settlements under President Joko Widodo’s administration.
Vice Minister Hirose echoed this sentiment, expressing hope that Japan-Indonesia cooperation in infrastructure will deepen, particularly in advancing recycled asphalt technology.
"We hope that recycled asphalt technology can be implemented soon. Japan is ready to actively support this effort, and we look forward to Vice Minister Diana driving its adoption in Indonesia," Hirose concluded.