INFRASTRUCTURE PROJECTS OPPORTUNITY
Source: Indonesian Commercial Newsletter - April 2006
Indonesia is undoubtedly in a great need for new infrastructures across the span of the economy. The government of Indonesia has put infrastructure in high priority list for the country's short and medium term development. The government has announced that the country needs around US$ 130 billion to developed new infrastructures projects for the period of 2005-2009 to maintain gross domestic product growth of more than 6% a year over the same period. Of this huge amount of fund needed, the government is able to meet only 17% of the budget, and the remaining 83% is expected to derive from private sectors.
There is, however, some doubt on whether funding is the main problem or is it the lack of legal and operational certainty.
In the first "infrastructure summit" in January 2005, the government unveiled a list of 91 priority infrastructure projects offered to private sectors with an estimated value of US$ 22.5 billion.
Many of the projects were developed in cooperation with state owned enterprises (SOE) prior to the financial crisis but have languished for lack of financing. Valued at approximately US$ 22.5 billion (in aggregate), the sectoral distribution
of the project is as follows:
Indonesia is undoubtedly in a great need for new infrastructures across the span of the economy. The government of Indonesia has put infrastructure in high priority list for the country's short and medium term development. The government has announced that the country needs around US$ 130 billion to developed new infrastructures projects for the period of 2005-2009 to maintain gross domestic product growth of more than 6% a year over the same period. Of this huge amount of fund needed, the government is able to meet only 17% of the budget, and the remaining 83% is expected to derive from private sectors.
There is, however, some doubt on whether funding is the main problem or is it the lack of legal and operational certainty.
In the first "infrastructure summit" in January 2005, the government unveiled a list of 91 priority infrastructure projects offered to private sectors with an estimated value of US$ 22.5 billion.
Many of the projects were developed in cooperation with state owned enterprises (SOE) prior to the financial crisis but have languished for lack of financing. Valued at approximately US$ 22.5 billion (in aggregate), the sectoral distribution
of the project is as follows:
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