The Asia Foundation

The Asia Foundation

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Financial Times: Indonesia’s Infrastructure Hindering Economic Growth

June 8, 2011 — An op-ed in Financial Times (Asia edition) analyzes Indonesia‚Äôs growing economy and whether the economic boom can sustain itself. As the authors, Anthony Deutsch and Henny Sender, explain, ‚ÄúLast year, foreign investors poured a record $16.1bn into the country ‚Äď twice the level of five years ago and nearly four times the amount of a decade ago. Over the past two years, the stock market has risen 133 per cent and it continues to outperform regional peers.‚ÄĚ However, Indonesia can still work to improve its infrastructure. According to The Asia Foundation‚Äôs The Cost of Moving Goods report, inefficiencies and road fees sometimes account for 40 per cent of total logistics costs, slowing growth and hurting competitiveness in sales of commodities, including coffee, rubber, and cocoa.

‚ÄúStop and go‚ÄĚ (print only)

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