Indonesia to invest £55 billion in transportation
Indonesia economy has been growing and is expected to remain so at a rate of more than 6% annually. With this growth, the demand for better transportation has also increased as more expats are relocating to Indonesia while the number of middle class is expected to triple.
In order to keep up with the demand and to ensure further economical success, the government has announced plans upgrading plans for railways, roads and airports that will potentially cost them more than 55 billion pounds. However, due to the scale and urgency to execute these projects, they need to be funded by private-public-partnerships (PPP).
The number of PPP projects in Indonesia’s infrastructure development has been increasing in recent months. For example, India’s GVK Power and Infrastructure has recently signed an MoU with Indonesia to develop 2 greenfield airports (article). On the other hand, the China Railway Construction Corporation has pledge an investment of RP 100 trillion in the construction of a bridge linking Sumatra to Java, which is currently Indonesia’s biggest infrastructure project in history (article).
If you are keen to find out more about investment opportunities in Indonesia’s infrastructure and transport systems, don’t forget to join us at Urban Transport World Asia 2012 in Jakarta this October. A list of PPP Transport and Infrastructure projects in Indonesia can be downloaded here.
By: Julia Anjani
