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"Strategic Assessment of Indonesia's Road Infrastructure Funding"


  • SOLICITATION NUMBER: 0002015462
  • INSTITUTION:  IBRD/IDA
  • ASSIGNMENT LOCATION: Indonesia
  • ISSUE DATE AND TIME: Apr 14,2025 14:42
  • CLOSING DATE AND TIME: Apr 29,2025 23:59

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:1.Mobilizing private capital and structuring Public-Private Partnerships (PPPs)2.Leveraging existing road assets and revenue streams3.Exploring innovative asset recycling mechanisms4.Accessing climate finance and Environmental; Social; and Governance (ESG) funding sourcesThis 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.                

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