25081614
THE WORLD BANK GROUP
Strategic Assessment of Indonesia's Road Infrastructure Funding
Indonesia
Expression of Interest are invited for Strategic Assessment of Indonesia's Road Infrastructure Funding
Indonesia's subnational road network (SNR) forms a vital transportation infrastructure spanning 34 provinces, 416 districts (kabupaten), and 98 cities (kota). The network comprises approximately 47,000 kilometers of provincial roads and 435,000 kilometers of district/city roads, connecting communities across the archipelago's 17,000+ islands. Following the 1999 decentralization reforms, these roads are managed by respective local governments, though significant challenges persist. About 40% of the network is in poor condition due to maintenance backlogs, while local governments face funding constraints in managing their road assets. The disparity in road quality and connectivity is particularly pronounced between Java and the outer islands, affecting the mobility and economic opportunities of Indonesia's 270+ million citizens.
The World Bank is supporting the Government of Indonesia (GoID) in developing a comprehensive strategy for financing sub-national road infrastructure through:
Mobilizing private capital and structuring Public-Private Partnerships (PPPs)
Leveraging existing road assets and revenue streams
Exploring innovative asset recycling mechanisms
Accessing climate finance and Environmental, Social, and Governance (ESG) funding sources
This consultancy aims to establish a sustainable financing framework that optimizes infrastructure development while ensuring long-term fiscal sustainability. The strategy will focus particularly on private sector investment through well-structured financial instruments and asset management approaches.
Indonesia's subnational road network (SNR) forms a vital transportation infrastructure spanning 34 provinces, 416 districts (kabupaten), and 98 cities (kota). The network comprises approximately 47,000 kilometers of provincial roads and 435,000 kilometers of district/city roads, connecting communities across the archipelago's 17,000+ islands. Following the 1999 decentralization reforms, these roads are managed by respective local governments, though significant challenges persist. About 40% of the network is in poor condition due to maintenance backlogs, while local governments face funding constraints in managing their road assets. The disparity in road quality and connectivity is particularly pronounced between Java and the outer islands, affecting the mobility and economic opportunities of Indonesia's 270+ million citizens.
The World Bank is supporting the Government of Indonesia (GoID) in developing a comprehensive strategy for financing sub-national road infrastructure through:
Mobilizing private capital and structuring Public-Private Partnerships (PPPs)
Leveraging existing road assets and revenue streams
Exploring innovative asset recycling mechanisms
Accessing climate finance and Environmental, Social, and Governance (ESG) funding sources
This consultancy aims to establish a sustainable financing framework that optimizes infrastructure development while ensuring long-term fiscal sustainability. The strategy will focus particularly on private sector investment through well-structured financial instruments and asset management approaches.
THE WORLD BANK GROUP
Address: Floor 12, Tower 2, Indonesia Stock Exchange Building, Jl. Jenderal Sudirman Kav 52-53, Jakarta 12190, Indonesia
Tel: +62 21 5299 3000
Country: Indonesia
Email: [email protected] /[email protected]
Website: https://www.worldbank.org/
0002015462
The World Bank
2025-04-29
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