Infrastructure
From The Report: Indonesia 2018
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An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing $414.6bn of new public works projects between 2015 and 2019, including large-scale transportation, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to deliver planned projects, with dozens of state actors collaborating to develop new infrastructure policy, including an organised framework for public-private partnerships, new finance models and risk management reforms. Public expenditure on infrastructure is expected to hit a historic high in 2017.

This chapter contains interviews with Bambang Brodjonegoro, Minister of National Development Planning; and Jin Liqun, President, Asian Infrastructure Investment Bank.

Articles from this Chapter

Overview

Structurally committed: Pushing forward in a key area of development
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An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing Rp5500trn ($414.6bn) worth of new public works projects between 2015 and 2019, including large-scale transport, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to deliver planned projects, with dozens of state actors collaborating to develop new infrastructure…

Analysis

Banking on change: Reformulated government funding to play an important role in infrastructure development
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As it moves to implement a major infrastructure development programme, the government has faced significant challenges in accessing the necessary financing for new projects. However, recent moves to partner with the World Bank for the formulation of a government debt and risk management programme (GDRMP) should support borrowing activities at state-owned enterprises (SOEs), with a new internal credit rating scorecard system expected to improve risk management. With SOE allocations declining…

Interview

Strong prospects: Bambang Brodjonegoro, Minister of National Development Planning, on the private sector’s role in infrastructure
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Interview: Bambang Brodjonegoro What role do you see foreign investment playing in infrastructure development? BAMBANG BRODJONEGORO: There are a very good prospects for foreign direct investment (FDI) in infrastructure development. First of all, we know that we are way behind in infrastructure – both in terms of quality and quantity. In our five-year development plan for 2014-19, we estimated the total need for infrastructure to be around $400bn. From our calculations, only around 33% can be…

Analysis

Setting sail: Major investments earmarked for maritime sector
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Investment and development in maritime infrastructure and greater support for the shipbuilding industry look set to raise Indonesia’s freight-handling capacity, moving the country closer towards its goal of becoming a top global maritime player. In March the government passed new regulations expanding on the global maritime fulcrum (GMF) doctrine laid out by President Joko Widodo in 2014. The new policy – known as Presidential Regulation No. 16 of 2017 – sets out a range of measures…

Analysis

Private presence: Increased involvement of the private sector is expected to help overcome challenges
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The government has announced that the implementation of public-private partnerships (PPPs) is a critical priority for President Joko Widodo’s administration, especially as it moves to deliver a massive infrastructure agenda, including transport, utilities and social infrastructure projects. Although progress has been made in expediting the delivery of dozens of planned projects, PPP implementation has remained somewhat limited. However, the Committee for Acceleration of Prioritised Infrastructure…