Infrastructure Ground Zero

Indonesia is experiencing solid economic growth despite the global financial uncertainty, but bottlenecks on roads, overcrowded ports, and frequent power cuts get in the way of further expansion and hold up business.

More citizens in the world’s fourth most populous country with 240 million people are buying cars and motorcycles, making Indonesia a darling of auto manufacturers, but the growth increasingly outpaces the construction of new roads.

‘Indonesia can achieve economic growth of between 8 and 9 per cent if infrastructure development is accelerated,’ said Fauzi Ichsan, chief economist with Standard Chartered Bank Plc in Jakarta.

‘We are talking about building power plants and more toll roads and modernizing sea ports and airports,’ he said.

Hendra Aditya, an accountant at a private company in Jakarta, said he spent more and more time in traffic as roads in the capital become increasingly crowded.

‘These days I spend four hours or five on the road daily and that’s despite the fact that both my house and office are in Jakarta,’ Aditya said.

Nota: There are an average of 28000 road deaths a year in Indonesia, making it one of the most common causes of death.