Infrastructure

When Joko Widodo rode to power on a wave of pro-business rhetoric in Indonesia’s 2014 presidential election, a key plank of his economic development platform was rooted in shoring up the country’s outdated and inadequate infrastructure. Now firmly entrenched at the country’s helm, the Widodo administration is going to significant lengths to make good on these campaign promises by channelling an unprecedented amount of funds into domestic infrastructure projects. The spending spree began with the addition of Rp112.4trn ($8.2bn) in the 2015 supplementary national budget, which was earmarked specifically for infrastructure outlays. This represented a 39% increase over the 2014 budget, funded largely by fuel subsidy savings made possible in part by the drop in oil prices at the time. These additional funds are being dispersed far and wide, spread across projects in oil and gas, power, water supply and waste treatment, roads, urban transport, rail, ports and airports.

This chapter contains interviews with Basuki Hadimuljono, Minister of Public Works and Public Housing; and Emma Sri Martini, President-Director, PT Sarana Multi Infrastruktur.