Indonesia is entering a pivotal phase in its infrastructure development strategy, with the Ministry of Public Works (PU) prioritizing 10 key toll road projects for 2026. Backed by a shift in public-private partnership (PPP) policy, the government aims to stimulate investor confidence while enhancing regional connectivity. This recalibration signals a broader transformation in how infrastructure is financed, built, and integrated into national growth.
Key Facts & Background:
- The Ministry of Public Works (PU) has identified 10 toll road projects as priority builds for 2026, as outlined in the 2026 Financial Note and Draft State Budget (RAPBN).
- These projects are part of a broader list of 16 toll roads under the Public-Private Partnership (Kerjasama Pemerintah dengan Badan Usaha, KPBU) scheme.
- The 10 active projects include:
- Krian–Legundi–Bunder–Manyar (KLBM)
- Serang–Panimbang
- Semarang–Demak
- Solo–Yogyakarta–NYIA Kulonprogo
- Kediri–Tulungagung
- Probolinggo–Banyuwangi
- Jakarta–Cikampek II Selatan
- Yogyakarta–Bawen
- Patimban Port Access
- JORR Elevated Cikunir–Ulujami
- A new PPP framework is being introduced: the government will no longer provide direct construction subsidies, instead offering support through regional development incentives.
- Upcoming toll road auctions include Gilimanuk–Mengwi and Gedebage–Tasikmalaya–Cilacap (Getaci).
- In 2026, the government also plans to build 28.19 km of new toll roads, 194.75 km of national roads, preserve 1,507.08 km of existing roads, and construct 3,954.74 meters of bridges.
Strategic Implications:
1. A Paradigm Shift in Infrastructure Financing
The decision to phase out direct construction support under the KPBU scheme marks a significant shift in Indonesia’s infrastructure financing model. By relying on toll tariffs and regional development to attract private investment, the government is signaling a move toward more market-driven mechanisms. This could encourage more disciplined project selection and cost efficiency, but also raises concerns about the commercial viability of projects in less-developed regions.
2. Regional Connectivity and Economic Spillover
The 10 prioritized toll roads span strategic corridors that link industrial zones, ports, and emerging urban centers. Projects like the Patimban Port Access and Solo–Yogyakarta–NYIA Kulonprogo are designed to unlock logistical bottlenecks and stimulate regional economies. If executed effectively, these roads could catalyze new investment clusters, reduce transport costs, and enhance Indonesia’s competitiveness in global supply chains.
3. Investor Confidence and Risk Allocation
Removing government construction guarantees shifts more risk to private entities, potentially deterring participation unless offset by robust demand forecasts and regulatory clarity. The new model’s reliance on regional development benefits—such as increased land value and traffic volume—requires careful coordination between central and local governments. Transparent land acquisition, zoning policies, and integrated urban planning will be critical to ensure project bankability.
4. Long-Term Sustainability and Urban Integration
The emphasis on regional development as a form of indirect support aligns with global trends in transit-oriented development (TOD). By integrating toll roads with broader urban growth strategies, Indonesia can promote sustainable mobility, reduce urban sprawl, and optimize land use. However, this requires a shift in mindset—from building roads as standalone assets to embedding them within holistic infrastructure ecosystems.
5. Strategic Signaling Ahead of 2026
While not overtly political, the prioritization of infrastructure in the 2026 budget sends a clear message about the government’s development agenda. It reflects continuity in Indonesia’s long-standing infrastructure push, while also introducing reforms that could redefine the role of the state in capital-intensive projects. For stakeholders—from investors to regional planners—understanding this evolving landscape is essential for long-term engagement.