hopes and doubts-promises unfulfilled?

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PROMISES UNFULFILLED? In May 2014, Indonesian presidential candidate Joko Widodo, or Jokowi, and his running mate Jusuf Kalla released their campaign platform of Nawacita, or nine programmes. The Nawacita covered business, education, defense and rural development. Since being elected in July 2014, Jokowi has come up short so far on his campaign promises. He has protected the country’s maritime borders, no small feat in a nation of 17,000 islands. However, efforts to regulate the oil and gas industry and spur infrastructure developments have foundered amid bureaucratic inertia. Disagreements between local governments are delaying new airport approval and construction. Plans have only been made to open a new runway at Soekarno-Hatta Airport by 2017 BUILD ten new airports Foreign ownership limits on port facilities is discouraging outside investment. Insufficient planning and design are also delaying projects. The government is seeking US$7bn in overseas capital investment. The main port of Tanjung Priok still has average dwell times of 5.8 days vs. just over 1 day in Singapore. CONSTRUCT ten ports I N D O N E S I A J A N - D E C 2 0 1 5 © The Economist Intelligence Unit, 2016

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Page 1: Hopes and doubts-Promises unfulfilled?

PROMISES UNFULFILLED?In May 2014, Indonesian presidential candidate Joko Widodo,

or Jokowi, and his running mate Jusuf Kalla released their

campaign platform of Nawacita, or nine programmes.

The Nawacita covered business, education, defense

and rural development.

Since being elected in July 2014, Jokowi has come up

short so far on his campaign promises. He has protected

the country’s maritime borders, no small feat in a nation

of 17,000 islands. However, efforts to regulate the oil and

gas industry and spur infrastructure developments have

foundered amid bureaucratic inertia.

Disagreements between local governments are delaying new airport approval and construction.

Plans have only been madeto open a new runway atSoekarno-Hatta Airport by 2017

BUILD ten new airports

Foreign ownership limits on port facilities is discouraging outside investment.Insufficient planning and design are also delaying projects.

The government is seeking US$7bn in overseas capital investment. The main port of Tanjung Priok still has average dwell times of 5.8 days vs. just over 1 day in Singapore.

CONSTRUCT ten ports

IND

ON E S I A

JAN-DEC 2015

© The Economist Intelligence Unit, 2016

Page 2: Hopes and doubts-Promises unfulfilled?

Sources: Nikkei, Local media reports, Indonesia General Elections Commission, Government Goods and Service Procurement Policy Agency Sponsored by Shell

REPLACE invalidated oil and gas lawA new law is needed to reduce uncertaintyabout the extension of expiring contractsand provision of new contracts. However, debate about the legislation has continued in parliament this year.

The industry is still awaiting a new law after three years, and no end is in sight.

New dam building is moving slowlybecause of accusations from people who say they were flooded off their land as a result of dams.

The Jatigede dam project opened in September but will only irrigate 90,000 ha of land.

PRODUCE 2,000 km of new roads

IRRIGATE 3m ha of new rice fields

Land acquisition remains problematic as builders must gain approval from each district through which a road passes.

Only about 530 km of toll roads are planned or going through a tender process.

Bureaucracy has kept the Ministry of Public Works from meeting its target of using 61% of its project budget by October 2015.

The Ministry of Public Works spent 35% of its annual budget by October 2015.

SPEND 61% of 2015 budget

IND

ON E S I A

JAN-DEC 2015PROMISES UNFULFILLED?