Indonesia’s Infrastructure: Successes And Hurdles
So, what’s next?

Over the past few years, infrastructure has been the star of Indonesia’s economic growth. Since President Joko Widodo headed the government in 2014, infrastructure development has been his top priority. The government’s budget commitment on infrastructure has doubled in 2017 (an increase of 18 per cent) as compared to 2014.

The growth of infrastructure is one of the most significant contributors to Indonesia’s gross domestic product (GDP). The construction industry grew by 7.13 per cent, higher than the national GDP growth of 5.06 per cent (year-to-year), up to the third quarter of 2017. It was a right decision for this presidential term to focus on infrastructure, not only because the industry is capital intensive and creates a significant number of jobs, but also because it enables other production factors to be more efficient, resulting in better quality of life.

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