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Indonesia needs $70b a year for infrastructure
The Jakarta Post, Jakarta | Tue, 02/14/2012 7:09 PM
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Indonesia will need to spend US$70 billion a year on infrastructure for the next five years in order to keep economic growth at an annual rate of 6 to 7 percent or higher, said a global publishing, research and consultancy firm in Jakarta on Tuesday.
"The weakness to supporting Indonesia's economy is the infrastructure gap problem. This is a daunting task for Indonesia, to connect the urban and rural areas in this vast archipelago," Paulius Kuncinas , the regional editor of Oxford Business Group (OBG) told the press during the launch of Report Indonesia 2012.
According to the report, during President Susilo Bambang Yudhoyono's first five-year term in office, just 125 kilometers of highway were built.
In comparison, China added 4,710 km of highway in 2009 alone.
"Another challenge is that Indonesia has to reduce red tape in a bid to attract investment for its major projects," Kuncinas said.
The publication, which marks OBG's fifth year of operations in the country, also analyses the country's efforts to strengthen its role on the regional and international stage during its term as chair of ASEAN in 2011.
Trade Minister Gita Wirjawan said he was optimistic that Indonesia could resolve the infrastructure problem.
"We are currently working on the 2x10,000 megawatt Central Java coal fired power plant, the Soekarno-Hatta International Airport-Manggarai railway, Kuala Namu Airport, the Umbulan spring water supply system and the Tanah Ampo Cruise Terminal. I am sure we can handle the infrastructure problem," Gita said.
He also said that the National Development Planning Board (Bappenas) had 13 projects at the top of its priority list worth $27.5 billion. Aside from those 13, Bappenas has 79 projects on its wish list worth $53.4 billion. (nfo)
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