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[News] Indonesia Need Another Mega Boost In Investment
Posted at: 21 August 2017

Investments in Indonesia will need more boost. According to World Bank president, Jim Yong Kim, "Indonesia needs about $500bn over the next five years to build roads, ports and bridges and should remove hurdles to encourage greater private sector investment".

The countries challenging geography leaves many without access to electricity, running water and paved roads. Also, as Indonesia's population is growing even faster than China's and India's, the existing infrastructure becomes overloaded.

To achieve this, Indonesia's government need to set aside 4.7% of the gross domestic product by 2020 to build infrastructure from about 2% now, Kim said at a conference in Jakarta. He also said that Indonesia should lower its reliance on state-owned companies to undertake projects and instead tap the private sector and foreign funds to finance them.

Since taking office in 2014, President Joko Widodo hit the gas on spending on infrastructure to more than 60% of the annual budget, this also meant to improve the living standards of the poor in the world’s fourth-most populous country.

(From Jakarta Globe and Asiaweek)