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...
As Indonesia develops connectivity domestically, it has to begin thinking about international links. The emphasis to date has been on unifying the nation via the internet, and considerable progress has been made. The building of the internet backbone has been important in getting more of the remote corners of the archipelago online, while...
What can the government do to improve investor appetite for public-private partnerships (PPPs)?
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...
In a series of bold steps to improve the infrastructure sector in the past few years, Indonesia has introduced regulatory reforms, expanded the space for private sector participation, extended investment risk guarantees, raised tariffs, passed the Land Acquisition Act and simplified registration processes. However, bureaucratic red tape, lack of...
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