INFRASTRUCTURE IN INDONESIA
Why major construction projects are needed to drive socio-economic development and harness the entrepreneurial spirit of 20 million surplus workers
Indonesia is a sleeping giant . With 252 million inhabitants and a Gross Domestic Product of around US $ 890 billion , it is the largest economy in Southeast Asia and 30th largest in the world .
Domestic consumption accounts for more than 55 percent of the country ’ s GDP , a factor which has sheltered it from the global economic crisis and facilitated a steady growth rate of 5.8 percent over the past 10 years . Political stability and a burgeoning middle class of 74 million , many of which are under 30 , is also an attractive proposition for would-be investors .
Indonesia also houses an abundance of natural resources . It is the world ’ s largest producer and exporter of crude palm oil , the second largest producer of cocoa and tin , the second largest producer of coal and the fourth largest exporter of natural gas .
Steady , however , is not enough . Despite the already formidable statistics , voices inside the country are calling for a massive ramp up in productivity , especially in the construction of infrastructure . Such an enormous workforce and bountiful supplies of valuable commodities , it is said , are underutilised .
A report published in 2014 by Indonesia ’ s Centre for Public Policy Transformation , The Economic Choices Facing the Next President , outlines a ‘ once in century opportunity ’ for Joko Widodo , now in his second year as head of state . There are two choices - either continue with business as usual and continue with five percent growth , or embark
110 June 2016