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KADIN Indonesia | Infrastructure: Where are we heading to?

The lack of infrastructure is still a key bottleneck to Indonesia’s development. It has been hampering economic growth for many years. Analysts believe that if Indonesia could do better in the infrastructure double digit growth would not be only a dream. It can foster the Indonesian economy across all of Indonesia, create employment for people and at the same time will help to further eradicate poverty.

Realizing the importance of infrastructure, KADIN Indonesia has set up a new board level committee with responsibility for this sector. Chaired by prominent business person and industrialist Rachmat Gobel, the committee held its first National Assembly on March 26 at Hotel Royal Kuningan with the theme “Revitalize the National Infrastructure Development.”

KADIN Indonesia’s Chairman Suryo Bambang Sulisto said in his opening speech that this event is an important moment to strengthen the business community – with aim of fostering infrastructure within the country. “This is the time for KADIN Indonesia members to be actively involved in these developments and to provide solutions to problems”, Suryo said.

Moreover, Irman Gusman, the Chairman of the House of Regional Representatives (Dewan Perwakilan Daerah, DPD) also pointed out on how KADIN Indonesia could support local infrastructure development through the regional chamber chapters (KADIN Daerah). A Memorandum of Understanding was signed to institutionalize cooperation between KADIN Indonesia and Dewan Perwakilan Daerah.

With the intention of serving as a partner of the government, this Board division is committed to work together hand in hand with local business people, pursuing infrastructure development through the ambitious Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI). Rachmat Gobel stated that his upcoming term of three years will not be sufficient to tackle all problems related to infrastructure, not mentioning the expected political stalemate before the 2014 Presidential elections. However, he believes if attention is paid to the most pressuring problems, this will already deliver power to problem-solving processes: “Politics is politics but business must go on”, underlining his commitment.

The assembly was intended to discuss urgent issues in infrastructure development, especially in local area, to gather up-to-date data on the implementation of infrastructure projects. The recommendations will be brought into a more comprehensive National Dialogue Meeting with the government in the upcoming months.

KADIN Indonesia - 2013

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Indonesia Snapshot

Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)