Infrastructure Plays Shine, But Investors Must Pick Their Spots
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia’s industrial infrastructure sector is emerging as a key driver of productivity and competitiveness, drawing growing attention from global investors. Analysts say the sector’s appeal lies in its ability to support industrial activity while boosting national connectivity and efficiency.
Indef economist Ahmad Heri Firdaus underlined the importance of readiness. “Global investors are looking for countries that already have industrial infrastructure in place,” he said in a recent discussion.
Heri noted that the government has been accelerating the rollout of special economic zones and industrial downstreaming, both of which require robust infrastructure. The stakes are high: industry accounts for nearly 20% of Indonesia’s gross domestic product.
From the market perspective, Reliance Sekuritas Indonesia Director Reza Priyambada said infrastructure has remained an investor favorite, supported by industry growth prospects and solid corporate governance.
He pointed to subsectors ranging from toll roads, with PT Jasa Marga Tbk (JSMR), and ports, with PT Indonesia Kendaraan Terminal Tbk (IPCC) and PT Jasa Armada Indonesia Tbk (IPCM), to telecommunications, with PT Telkom Indonesia Tbk (TLKM) and PT XL Axiata Tbk (EXCL), and industrial infrastructure, with PT Chandra Daya Investasi Tbk (CDIA).
“Company fundamentals matter, but stock performance is also influenced by market sentiment, liquidity, and government policy,” Reza said. “Investors today are more selective, favoring issuers tied to strategic projects or emerging themes like green energy and digitalization.”
One standout has been CDIA, a new entrant whose shares surged from Rp 190 to Rp 1,500 on enthusiasm over renewable energy and its role within Barito Pacific Group’s integrated ecosystem. “CDIA’s core revenue comes from electricity sales, which is aligned with the government’s energy transition agenda,” Reza added. Still, he cautioned that management consistency will be critical to sustaining momentum.
Heri agreed that such companies can bolster investor confidence. “This sector is crucial to supporting productive activity. Issuers with integrated ecosystems add to Indonesia’s investment appeal,” he said.
Looking forward, analysts see plenty of room for expansion but warn that bottlenecks remain, including land availability, logistics costs, and regulatory uncertainty. Addressing these challenges will require tighter coordination between government and the private sector. Success could help Indonesia close the gap with its regional peers and position infrastructure issuers as long-term growth engines.
Both experts stressed the importance of building a complete ecosystem — from basic infrastructure and connectivity to investment-friendly regulation. That, they argued, would allow Indonesia to move beyond being just a large consumer market to becoming a competitive production hub in ASEAN.
“Opportunities in industrial infrastructure are wide open,” Heri said. “The challenges are real, but with supportive regulation and private-sector collaboration, the long-term outlook remains positive.”
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