Jakarta Plans 2026 Launch for Collaboration Fund
Boosting City’s Global Reach and Inclusivity
Jakarta is gearing up to launch its new Collaboration Fund (JCF) by 2026, a strategic move designed to streamline investments and bolster the Indonesian capital’s standing on the global stage.
Innovative Financing for Ambitious Growth
The Jakarta provincial government is actively collaborating with the Asian Development Bank (ADB) to establish the JCF. This initiative aims to create a formal institution by year-end, paving the way for operational readiness in 2026.
Yustinus Prastowo, an advisor to the Jakarta Governor, shared the project’s timeline and objectives. The fund is envisioned to support development projects that prioritize spatial inclusivity.
“Inclusivity means involving disadvantaged groups. The government will focus on how to redistribute resources, such as the regional budget (APBD), tax revenues, levies, and transfers to regions in order to create fair and equitable growth.”
—Yustinus Prastowo, Advisor to the Jakarta Governor
Bridging the Funding Gap
Jakarta faces a substantial funding requirement of approximately Rp1,064 trillion (around US$65.4 billion) for its development programs between 2025 and 2029. However, the regional budget (APBD) can only cover about Rp400 trillion of this amount.
This deficit necessitates novel financing strategies to achieve Jakarta’s long-term vision of becoming one of the world’s top 20 cities by 2045. The JCF is positioned as a key component of this strategy, serving as a regional development financing agency and an alternative funding source.
Strategic Partnerships and Asset Optimization
The fund is also intended to act as a nexus for public-private partnerships (PPP) and to oversee spatial utilization funds. This dual role aims to optimize the city’s regional assets and ensure that development projects are strategically chosen to promote equitable growth.
The JCF will enable the provincial government to meticulously select priority development projects, ensuring no communities are left behind in the city’s progress. This focus on equitable distribution of resources aligns with the Governor’s broader vision for inclusive economic expansion.
Globally, cities are increasingly leveraging public-private partnerships to fund infrastructure and development. For instance, London’s Transport for London secured over £1 billion in private investment for major infrastructure projects in 2023, demonstrating the power of such collaborations (Global Government Forum, 2023).
