Infrastructure in Indonesia: Will recent reforms make things easier?

Indonesia's need for infrastructure to drive economic growth and social progress is clear. Two new Presidential Regulations offer some hope that the legal framework is becoming more enabling.

In 2014, President Joko Widodo (known as Jokowi) was elected with a vision for new airports, roads and seaports, with an emphasis on developing a "sea highway" to connect the archipelago.

Since then, as growth has slowed, Jokowi has reaffirmed the importance of infrastructure to the nation's future prosperity.

But regulatory certainty and co-ordination remain significant issues, constraining confidence and investment.

Two critical issues have been the difficulty in acquiring land for public infrastructure purposes and the legal framework to support public private partnerships (PPPs).