INFRASTRUCTURE IN INDONESIA
The delay of getting into port and missing the ship is one example . Something like 10 percent of freight trucked to port actually misses the ship because the trucks just can ’ t get there on time . Roads are chock-a-block all day and all night .”
The Indonesian ports themselves , Fagan added , are also in need of upgrading . Oil imports from the Middle East have to route via Singapore onto smaller ships in order to dock in Indonesia , adding significant cost . Navigating the 13,000- plus islands is also a logistical challenge , with current infrastructure not aiding the process as much as it could . Difficulties such as these and the subsequent increase in the cost of doing business has resulted in major companies moving their custom to the likes of Myanmar .
“ It ’ s not just roads and ports that will help businesses but also a significant investment into water resources and water treatment .” Fagan said . “ In Jakarta , as in many cities in Indonesia , you can ’ t drink the water out of the pipe . It ’ s so heavily polluted .
“ Power supplies are also critically short and that ’ s not important just for the civilian population but also for business . It is big cost on business having to provide their own electricity when the government ’ s power supply is interrupted , which can happen frequently outside the capital city .”
“ There are more than 20 million under or unemployed workers with a strong entrepreneurial spirit , partly born by necessity as there is no social safety net system in Indonesia ”
– Peter Fagan , Vice President of Southeast Asia Operations , Hill International
112 June 2016