Infrastructure

With its low debt-to-GDP ratio and abundant resources, growing consumer demand, healthy political discourse and rising investment, Indonesia is set to lead the region and could become the world’s sixth-largest economy by 2030. The country has 11 commercial ports, more than 200 airports, an estimated 17,508 islands and around 245m people. The government is working to address the current lack of infrastructure with spending on roads, bridges, ports, airports and power stations, as well as by supporting public-private partnerships. If a few infrastructure deals get done in the next year, and if there is clear and verifiable progress and commitment of actual investment funds to these transactions, many more agreements could follow and a significant amount of infrastructure could be built. This chapter contains an interview with Ir. Hermanto Dardak, Vice-Minister of Public Works, and a roundtable with Arsjad Rasjid, President Director and Group Co-CEO, Indika Energy; Sinthya Rosely, CEO, Indonesia Infrastructure Guarantee Fund; and Raj Kannan, Managing Director, Tusk Advisory.