Closing Indonesia's Infrastructure Gap

Closing Indonesia's Infrastructure Gap


Strewn across an archipelago of 17,000 islands, Indonesia is a remarkable country with a diverse geography. However, when it comes to the country’s infrastructure development and its economy, Indonesia’s impressive geography becomes an obstacle. To continue its economic growth and to spread development across the islands, its government needs to invest billions in everything from roads to hydroelectric dams. Development of infrastructure has accelerated under President Joko Widodo as part of his economic plan. Attracting investment from abroad has become a centrepiece of Jokowi’s foreign policy.

As Indonesia seeks to close its infrastructure gaps, countries like China, Japan, and the USA have launched programs to address infrastructure needs not only in Indonesia but elsewhere in the region. These programs include, just to name a couple, China’s high-profile Belt and Road Initiative (BRI) and Japan’s Partnership for Quality Infrastructure (PQI). To help our community understand how these infrastructure initiatives are impacting Indonesia as it seeks to close its own infrastructure gap, the Perth USAsia Centre has developed the Indonesia Infrastructure Map. By plotting where these initiatives are deploying their resources alongside Indonesia’s other projects, we can get a better grasp of how Indonesia is working with these initiatives to fill its gap.

Map notes:
  • This map is not exhaustive. The infrastructure ‘landscape’ in Indonesia is characterised by constant change and progress. The team will endeavour to keep it up-to-date based on a number of resources.
  • Sources for data points and projects. I draw on the following for the information the map contains:      
     - The Committee for Acceleration of Priority Infrastructure Delivery / Komite Percepatan Penyediaan Infrastruktur Prioritas. List of national strategic projects.
     - The Center for Strategic and International Studies (CSIS) in Washington DC. Their Reconnecting Asia program has a database of projects in the Indo-Pacific region.
     - The consulting firm PwC has a team in Jakarta devoted to infrastructure. They have an infrastructure news service, translating Indonesian-language articles and updates into
        English. Their newsletter is one of the best compendiums of infrastructure-related updates on projects and policy available.
     - It’s a little outdated now, but this Economist Intelligence Unit report on “One Belt, One Road: An Economic Road Map” (2016) has a list of projects in Southeast Asia’s
        infrastructure  pipeline.
     - Global Infrastructure Project Pipeline: A G20 initiative, this pipeline is a free digital platform that allows governments to promote their public infrastructure projects to a global
        investor network.