Few visitors to Jakarta will miss its notorious traffic. Indeed, Castrol’s Magnatec Stop-Start Index recently declared the capital the world’s most congested city. A number of factors have contributed to this gridlock over the years. Land use is one: only 6% of Jakarta’s land is dedicated to roads, compared to the roughly 15% needed for a modern city. Growing car ownership is...
Investors will risk capital on long-term projects only when they expect to capture adequate returns from their investments. However, they will only do that if they can forecast, with some certainty, the length of time it will take to complete such projects. Since 1993, the Indonesian government has promulgated various regulations on land...
The government is addressing challenges relating to a lack of high-quality infrastructure by encouraging public-private partnerships (PPPs). Infrastructure investment has lagged in recent years, averaging 3-4% of GDP since 2000, well down on the 7% or more from before the Asian financial crisis in the late 1990s. While recent years have seen...
Sea transport is vitally important to Indonesia. The archipelago nation’s maritime zone covers 7.9m sq km, almost four times its land area. While coastal shipping accounts for about 7% of total national freight and passenger movements, 90% of Indonesia’s external trade is conducted through seaports. Between 2005 and 2010 container throughput...
For an archipelago spread over 17,500 islands and spanning 5000 km from west to east, the need for Indonesia to have an efficient transport network that seamlessly integrates sea, land and air transport systems is manifestly evident. The transport sector is the backbone of the economy, accounting for more than 40% of overall infrastructure...
More than 1000 km of rail lines are being developed on the islands of Borneo and Sumatra to allow for the more efficient and timely transportation of natural resources. East Kalimantan has an estimated 19.56bn tonnes of coal, while Central Kalimantan has 8.67bn tonnes. South Sumatra has an estimated 22.24bn tonnes of coal. And all three provinces...
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