WHAT’S HOLD­ING IT UP?

The Jakarta Post - Magazine - - News -

In spite of the of­fi­cial rhetoric, the con­struc­tion of in­fra­struc­ture projects in In­done­sia is not mov­ing as fast as it could or should. In­done­sia is mak­ing some progress, but we are also rac­ing against time. There is al­ready a huge deficit of in­fra­struc­ture fa­cil­i­ties — power plants, wa­ter treat­ment plants, roads, bridges, air­ports and sea­ports, to name but a few.

Fail­ure to catch up will cre­ate bot­tle­necks that will put the brakes on eco­nomic de­vel­op­ment and growth, if it hasn’t al­ready done so. The 7 per­cent yearly eco­nomic growth rate Pres­i­dent Joko “Jokowi” Wi­dodo has tar­geted dur­ing his 2014-2019 term in of­fice hinges on his gov­ern­ment’s abil­ity to build th­ese in­fra­struc­ture fa­cil­i­ties fast enough.

The need is clearly there, press­ing in fact. Po­lit­i­cal will on the part of the gov­ern­ment is never lack­ing. Pres­i­dent Jokowi has been sink­ing so much money into in­fra­struc­ture projects, yet progress has been painfully slow.

Gov­ern­ment money alone is not enough to meet the big chal­lenge. In­ter­na­tional de­vel­op­ment agen­cies have also been brought in to help. The pri­vate sec­tor, both lo­cal and for­eign, is not com­ing in as rapidly as needed. It ob­vi­ously has its rea­sons.

This spe­cial edi­tion of In­fra­struc­ture Out­look looks at the chal­lenges and prob­lems of the gov­ern­ment’s in­fra­struc­ture projects, and along the way pro­poses some so­lu­tions. We have as­sem­bled ar­ti­cles writ­ten by ex­perts, con­sul­tants and play­ers in the in­fra­struc­ture in­dus­try.

We hope the re­port sheds light on ways to speed up con­struc­tion pro­grams.

Endy M Bayuni EDI­TOR-IN-CHIEF

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