Indonesia Infrastructure

Poor infrastructure remains a drag on Indonesian performance

Underinvestment in transport and power is undermining Indonesia's growth potential, but the government seems serious about addressing the problems, according to S&P.

Indonesia lags some of its regional peers in efficiency and productivity mainly because of the poor state of its roads, airports, power sector and other economic lifelines, according to a report published by Standard Poor’s yesterday.

Indonesia's continued underinvestment in roads and other infrastructure threatens growth, says SP

Deficient and deteriorating quality is visible in urban congestion, high transport costs, electricity blackouts and limited access to better sanitation.

“The inadequacies in Indonesia’s transportation infrastructure are likely to hinder the country’s global competitiveness unless addressed,” said SP’s credit analyst Rajiv Vishwanathan. “Indonesia is also at risk of...

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