Friday, September 10, 2010


Indonesia is Southeast Asia's largest economy.

But, it lacks enough good roads, railways, airports, power stations, schools, hospitals etc.

Only around 50% of Indonesia's population has access to electricity from power grids

Only a third have piped water. (FACTBOX-Key facts about Indonesia's infrastructure sector)

Indonesia would like to spend $140 billion in infrastructure over the next five years. (FACTBOX-Key facts about Indonesia's infrastructure sector)

Indonesia in fact plans to build 14 new airports.

And it plans to build new roads and railways, to lure in investment.

Don't expect too much.

Many of the rich people manage to avoid paying taxes.

So, most of those billions for infrastructure will have to come from "the private sector."

That includes foreign banks.

George Soros and Indonesia's President Yudhoyono

If there are plans to build a nuclear power station or a new airport on poor people's land, then the military can be brought in to remove 'the peasants'.

But if it is rich people's land that is threatened, there could be delays.

And then there is corruption.

Historian Adrian Vickers describes the endemic corruption at the state oil firm Pertamina:

"At each stage of the transaction chain somebeody was getting a percentage..."

When a road is built in Indonesia, a lot of the money for the project has a tendency to disappear.


1 comment:

Aji Supeno Bagus Syam said...

but we will try to promote our country. with all of our efforts. because Indonesia is a great nation. Like the Keizen saying take a good, discard the bad and create new ones. Pray for Us to make it happen.

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