The rise of the smartphone has dealt a blow to the fortunes of BlackBerry globally, and it has been hit especially hard in Indonesia. The country was traditionally one of the best markets for the company. BlackBerry’s market share in the country went from less than 10% to almost half the market in two years to 2011. It has now dropped down to...
Financing the infrastructure sector is a major challenge for Indonesia. The government simply does not have the financial muscle to fund all of the necessary infrastructure projects on its own. According to the Ministry of Public Works, Indonesia requires $192bn of infrastructure investment between 2010 and 2014. The government and state-owned...
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...
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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