RRI.CO.ID, Jakarta – Sustainable infrastructure development is a key prerequisite for supporting Indonesia’s economic growth targets while enhancing regional competitiveness. Amid fiscal constraints and rising development financing needs, the Indonesian government continues to promote various innovative funding schemes.

Acting Deputy for Coordination of Industry, Labor, and Tourism, Dida Gardera, stated that these schemes include the Area Value Appreciation Management (P3NK) or Land Value Capture (LVC) program. This is believed to strengthen collaboration in sharing the benefits derived from increased land value.

“Infrastructure development is a key requirement for achieving the 8% economic growth target by 2029. To reach this target, we need innovative alternative financing mechanisms such as P3NK. This scheme is not a burden on businesses, but rather a collaborative ecosystem for sharing the benefits of increased area value,” Dida said, as quoted in a written press release from the ministry on Wednesday, June 17, 2026.

In his presentation, Dida emphasized that regulations related to P3NK are now in place, so the next focus is on driving implementation on the ground. Therefore, it is necessary to develop a pipeline of potential projects, particularly in transit-oriented development (TOD) areas and strategic urban areas, in order to generate projects suitable for development through this scheme.

In addition, the Indonesian government continues to encourage private-sector participation by providing policy and regulatory certainty, developing attractive incentive and benefit-sharing schemes, and streamlining the permitting process. Collaboration between the government and the private sector is considered a key factor in the successful implementation of P3NK, as has been demonstrated in various countries.

“P3NK is a policy innovation that opens up new opportunities for infrastructure development financing in Indonesia. However, we must understand that the success of P3NK depends not only on regulations, but also on our courage to build collaborations and begin implementation,” he said.

The forum also featured a panel discussion with regulators and business leaders. In addition, participants had the opportunity to take part in a Simulation Lab and Coaching Session to practice preparing feasibility studies and applying P3NK instruments to specific potential regions.