The increased investment from the private sector would help improve the competitiveness of the state transport infrastructure in the country, the ADB said.
The initiative would also help address the challenges Indonesia’s transport sector faces, such as improving connectivity.
Winfried Wicklein, ADB’s country director for Indonesia, said: “PPP is an important instrument to deliver infrastructure in Indonesia, and ADB is looking forward to assisting the government in development priority transport projects that could be structured on a PPP basis to mobilise private capital flows.”
The development bank will provide strategic advisory services to support delivery through PPP and will assist with a tailored PPP capacity programme for the Ministry of Transportation.
The Association of Southeast Asian Nations would need more than $60bn to close the infrastructure gap in the region, a conference heard earlier this month.