Infrastructure

With a population of 245m, including a rapidly growing middle class, the Indonesian market is widely regarded as having huge potential. However, infrastructural deficiencies are threatening to cramp growth. Limited transport infrastructure, from ports to roads and rail, has increased manufacturing costs and shipping times. Indonesia is attempting to address this deficit through public-private partnerships (PPPs), and has projects worth around $115bn planned or under construction. The infrastructure drive will rely on several government bodies, such as the Indonesia Infrastructure Guarantee Fund, which underwrites private investment in infrastructure projects to encourage such financing. This chapter includes an interview with Kuntoro Mangkusubroto, Head, Presidential Delivery Unit (PDU).