Indonesia weighs infrastructure finance options

Jakarta must encourage greater development of Indonesia's domestic bond market if it is to finance its ambitious infrastructure programme.

Infrastructure is the watchword for Indonesia as it targets Rp5.5 quadrillion $385 billion of infrastructure spending over the next five years to build an efficient transportation network that can foster higher economic growth and lift the country to middle income status. 

Since President Joko “Jokowi” Widodo came to power last summer he has pushed through numerous measures to ease the bottlenecks that kept infrastructure projects pinned to the drawing board. These include changes to the land acquisition law, which makes it easier to requisition farmers’ land, and a new one-stop shop for business licences.

How successful they prove to be remains to be seen, however, given...

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