Sunday, July 3, 2011

Indonesian Infrastructure


For this past year or so, Indonesia has been among the top investment destinations for many global businesses. Many are shifting their manufacturing arms to Indonesia as labor are still relatively cheap while local demand remains high and increasing. But not all who had shown initial interest actually place their investment in this country. One of the main concerns is poor infrastructure.

With almost half of total population lives in Java, most companies wish to build their facilities in this island as well, thus the need of well placed infrastructure is crucial. Recently the government has opened some 70 infrastructure projects for tender. Some of the proposals have been completed, some have been won, whilst some are still in progress. But the expected completion time frame is still yet to be seen thanks to the complicated bureaucracy. It is a public secret that companies have to pay the officials at every stage of the project when dealing with the government. And judging from past experiences, some (almost all) projects just take forever to finish. I know that the corruption level remains high, but for these past several years there have been many actions to fight these corruptions. Thus I will keep my fingers crossed that these projects will be finished on time,or at least not too long.

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