ASIA to buy food and I think this goes to the heart of it ,” Fagan added . “ All Indonesian people want is the opportunity for employment , and improving infrastructure will create an environment where businesses will want operate and employ more people .”
Political roadblocks Despite the best intentions of President Widodo , the political system in which he operates is holding back some important infrastructure projects .
The 120km high speed rail line linking Jakarta and Bandung , due to be completed by a Chinese- Indonesian business partnership , is a clear example of a project being held up in the political machine . Having had the seal of approval from Jokowi , just 5km has been released for construction due to intervention from the country ’ s Ministry of Transport .
“ Nobody really knows the rationale behind why it ’ s on hold ,” Fagan said . “ What is reported in the media is that environmental studies and land acquisition are yet to be completed .”
This leads into another problem - that of acquiring land , the budget for which is a fraction of what is needed to get several large infrastructure projects off the ground .
Indeed , the Economic Choices report states a need for a tenfold increase in government spending on infrastructure , from 0.6 to 6.5 percent of national income by 2019 . It recommends scrapping the fuel subsidy , a move which has already been made , as a means to freeing up capital . Much greater tax reform will also be needed .
Despite bureaucratic hold ups there are projects making it through the pipeline . A timely third terminal at Jakarta airport is nearing completion , and will greatly ease pressure on the transport hub which is currently operating at 250 percent of capacity .
Countering corruption A well-established culture of corruption is another tricky barrier that the country is trying to overcome . Generations of government officials who could not survive without the income
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