Asia Express - East Asian ICT
Indonesia to Earmark Over US$400 Billion for Infrastructure Revamp
May 18, 2019
Indonesia recently announced that the government has started to draft an infrastructure investment project worth US$412 billion for the period 2020-2024, the Economic Daily News reported on May 17. Pursuant to the project, the investment will be earmarked for building 25 new airports and electricity facilities. Of the total investment amount, 40% of which will be contributed by the government, 25% by the state-owned enterprises, and the remaining 35% by private enterprises. Moreover, 60% of the government spending will be allocated for transportation sector, 17% for energy sector, and 10% for agricultural irrigation. The country aims to connect remote areas by building more airports and providing support for seaplanes and aircraft maintenance. The project has also included the upgrade plan for its 165 existing airports and water-based facilities for seaplanes which are used to access remote areas. Despite so, Indonesia has been in trouble financially over the years, partly due to low tax compliance and weak commodity prices that have endangered the state budget thus several projects have been either put on hold or shelved.