Kedutaan Besar Republik Indonesia
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Indonesia Issues Regulation to Boost Infrastructure

p style=”text-align: justify;”>Indonesia has issued a regulation that will set clear time frames for the acquisition of land for infrastructure, the cabinet secretary office said on Thursday, which should help speed up infrastructure development in Southeast Asiaa��s largest economy.

The regulation, which was signed by President Susilo Bambang Yudhoyono this week, set a maximum time limit of 583 days for the completion of land acquisition and details of steps to be taken for the handover of land for public projects.

Investors and businesses in Indonesia, which has big infrastructure problems, have been waiting for the regulation for many months.

At present, many investors had been reluctant to start or continue large projects, fearing that they could be delayed indefinitely.

a�?We know this is a long-awaited regulation, and we know the problem in Indonesia is a bottleneck in infrastructure. Demand is strong and the problem is in the supply and one way to overcome this is infrastructure,a�? said Wuddy Warsono, country head for brokerage firm CLSA.

The regulation is expected to benefit tollway development firms as well as cement, steel and concrete companies.It is also expected to speed government plans to build or improve toll roads, ports and airports and help improve access to remote areas in the archipelago.

Warsono said, however, that the regulation would not be a silver bullet for Indonesia, but was a move in the right direction for boosting competitiveness.

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