August 23, 2025 | 07:41 pm
TEMPO.CO, Jakarta - PT Indonesia Infrastructure Finance (IIF) has disbursed Rp42.5 trillion in financing for the national strategic infrastructure projects. IIF strengthens its role as a partner of the Indonesian government and private sector in supporting sustainable development and accelerating national economic growth.
M Ramadhan Harahap, known as Idhan, Chief Investment Officer of IIF, stated that since its establishment in 2010, the company has become a strategic partner of the government and private sector in addressing the financing challenges of infrastructure projects.
"By the end of 2024, IIF has contributed to disbursing approximately Rp42.5 trillion in financing for over 150 strategic infrastructure projects," said Idhan in a statement in Jakarta on Saturday, August 23, 2025.
He mentioned that the support covers the transportation, energy, telecommunications, clean water, and other priority sectors.
Some recent key achievements include renewable energy projects with an installed capacity of nearly 700 MWh per year, providing power to more than 693,000 households, and a potential greenhouse gas emissions reduction of 4.81 million tons of CO2 per year.
Furthermore, seven drinking water projects provide safe and drinkable water access for more than 6.7 million people.
Additionally, the construction of medical facilities with a capacity of over 1,000 beds, serving hundreds of thousands of patients each year, and the development of strategic toll roads spanning hundreds of kilometers.
According to Idhan, Indonesia's 80th Independence Day is an opportunity to reflect on the country's long development journey. Indonesia has transformed from limited infrastructure in the early days of independence to modern connectivity today.
He said that Indonesia's 80th Independence Day provides an opportunity for reflection and lays the groundwork for Indonesia Emas 2045 (Gold Indonesia 2045). With financing capacity firmly adhering to the principles of Environmental, Social, and Governance (ESG), IIF will continue to play a strategic role as a partner of the government and private sector in building sustainable infrastructure for Indonesia.
Idhan added that from the Proclamation in 1945 to 2025, infrastructure has been the backbone of economic growth, equitable development, and national integration.
The last eight decades have shown remarkable transformations. In the early days of independence, infrastructure development focused on roads, bridges, dams, and irrigation to support food security.
The New Order era was marked by an acceleration in the construction of national roads, power plants, and the first toll road, Jagorawi, which opened in 1978.
The Reform era then opened a new chapter with private sector involvement through the Government and Business Entity Cooperation (KPBU) scheme, in line with the increasing investment needs. In the last decade, infrastructure has become a national priority.
Over the past 10 years, the government has completed 2,103 kilometers of toll roads, 40 dams, and 27 new airports, as well as other major projects, such as railway lines and the Nusantara Capital City (IKN).
Not only that, interregional connectivity has been strengthened with the construction of the Trans Papua, Trans Kalimantan, and Trans Sumatera routes, designed to connect previously isolated regions.
Infrastructure development has provided tangible benefits to the economy and the welfare of the people, with the construction sector's contribution reaching the fourth position in Indonesia's Gross Domestic Product (GDP) at 10.43 percent in the fourth quarter of 2024.
The national electrification ratio significantly increased to 99.83 percent by the end of 2024, ensuring almost every Indonesian household has access to electricity and promoting equitable development and welfare.
The Statistics Indonesia (BPS) and the National Development Planning Agency (Bappenas) recorded Indonesia's achievements in SDGs indicators at 62.5 percent, far above the global average, confirming the important role of the private sector and infrastructure financing institutions in supporting sustainable development.
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