Summary of publication

This brochure summarises Australia's assistance to Indonesia's urgent infrastructure needs.

Full publication

Indonesia's infrastructure needs are growing alongside population pressures and decades of under investment in the sector. For many Indonesians, poor quality water, traffic congestion, inadequate sanitation services and power outages are a part of life. The limited road network and its poor condition limits access to health facilities, schools and jobs, inhibits economic growth and inflates prices, particularly for food.

The state of Indonesia's infrastructure affects the country's economic growth. Investors are deterred by travel delays and difficulties transporting goods. This affects the employment and earning prospects of poor people.

The Australian Government is working with Indonesia to improve its urgent infrastructure needs.

Australia's assistance

Infrastructure is necessary for long-term sustainable development. Australia has been Indonesia's development partner for more than 50 years. In 2011, we are supporting infrastructure in 30 of Indonesia's 33 provinces, with a current commitment of more than A$450 million.

Australia's aid goes towards physical infrastructure investment as well as assistance with policy and institutional reform. We work with Indonesia's ministries of public works, finance and transport to improve the quality, planning and construction of Indonesia's infrastructure.

What we have achieved

Eastern Indonesia National Roads Improvement Program Australia is working with Indonesia to upgrade key sections of the national road network. Twenty projects, building both roads and bridges, are being funded in nine provinces across eastern Indonesia.

By improving road planning, preparation and construction, the project will provide a model for the Indonesian Government's future investments, extend the lifespan of roads, improve access to markets, increase productivity and stimulate economic growth.

Indonesia Infrastructure Initiative

Australia is working with the central government and many local governments to improve access to essential infrastructure, including water supply, sanitation, road, rail and sea transport.

In close partnership with the Indonesian Government, Australia is helping develop national road and rail master plans to guide future investment in these sectors. Australia is also developing regulation and investment plans to expand sanitation to eight major cities.

Water and sanitation

Australia works with Indonesia's local governments to improve urban water and sanitation infrastructure. By providing grants, this program will provide better access to clean piped water for approximately 380,000 people in over 70,000 poor urban households. Our assistance is also helping local governments invest in household sewerage connections and sanitation planning.

Poor communities in rural areas are also being supported with better access to water and sanitation facilities. The program encourages communities to plan, finance, manage and maintain their own water supply and sanitation systems and improve hygiene. Up to 4,000 villages across Indonesia will benefit from this assistance.

We are also working with Indonesia to improve policy, planning and investment opportunities across the water and sanitation sector.