Australian Embassy

Eight Years of Australian and Indonesian Cooperation for Better Roads, Sanitation and Water

Media Release

26 April 2017

A partnership between the Australian and Indonesian governments has seen more than 400,000 piped water connections, generated A$23 million in new bus infrastructure construction and is expected to create another 55,000 piped sanitation connections by 2019.

The Indonesia Infrastructure Initiative (IndII) which ran for eight years, has now concluded, leaving a significant legacy for regional governments, road users and households across Indonesia.

Deputy of Infrastructure, Bappenas, Wismana Adi Suryabrata said it’s been a productive and dynamic partnership.

“This contribution has proven to be a catalyst for infrastructure development in a range of sectors, especially transport and water resources,” Mr Wismana said.

Through technical assistance and grants, as well as the sharing of knowledge, IndII has sought to meet the challenges confronting the infrastructure sector in Indonesia.

One of the important breakthroughs of this infrastructure partnership is the Water Hibah program with its provision of financial grants. This use of conditional grants has also been applied in the road maintenance sector, through the Program Provincial Roads Improvement and Maintenance (PRIM) program in West Nusa Tenggara. This model is expected to be adopted nationally in the future.

“The great achievements and lessons learned have been made possible by the commitment of the Government of Indonesia, as well as the leadership demonstrated  at provincial and district levels,” said Minister Counsellor for Economic, Investment and Infrastructure,  Australian Embassy, Steven Barraclough.

“Although the IndII program is coming to an end, the partnership between Indonesia and Australia will continue so that infrastructure development in Indonesia can foster long-term and sustainable economic growth," Mr Barraclough said.

Australia announced a A$300m ten-year infrastructure program at the same time the decision was taken to resume IACEPA negotiations. The program represents an investment in our economic partnership.

Media Enquiries: 021 25505290

Images here


IndII Achievements


  • Over 200 local government areas have received better water and sanitation services
  • 20% of new piped water connections have been funded by Water Hibah; 400,000 connections for around 1,8 million users
  • A$115 million of grants disbursed to 156 local governments
  • The Indonesian Government has made available up to A$1 billion until 2019 to provide water connections for up to three million households.
  • The sanitation programs will continue until 2019, and are expected to benefit more than 300,000 Indonesians, through  55,000 piped sanitation connections.


  • Developed a master plan with Bina Marga for more than 9,400 km of new and improved roads by 2034.
  • Generated $23 million in new bus infrastructure construction through A$ 3.8 million in technical assistance to TransJakarta.
  • Increased public and private engagement and scrutiny of road transport through the establishment of a Road Traffic and Transport Forum in Nusa Tengara Barat.
  • Demonstrated the benefit of performance based road maintenance funding models which have improved the quality of the road network in Nusa Tengara Barat.