US$44 billion infrastructure boost for Indonesia

THE INDONESIA government is setting aside 400 trillion rupiah (US$44 billion) in funds for infrastructure development, as part of a plan to improve connectivity within the country by 2014.

“Indonesia has set a target to achieve 20 million (overseas) arrivals by 2025. This will not be achieved without supporting regulation and infrastructure development,” said Indonesia Coordinating Minister for the Ecomony, Hatta Rajasa.

“Connectivity – by this I mean domestically we are integrated, globally we are connected – is a major pillar in the Indonesian economic development. Connectivity will be the backbone to achieving our targets.”

“The government will not hesitate to inject the money to build (infrastructure) in areas which have potential (for tourism) but are not viable because of accessibility,” he added.

Rajasa gave examples of areas in Eastern Indonesia, such as Wakatobi in South East Sulawesi, and North Maluku, which have pristine nature offerings but limited accessibility.

“I have invited the transportation related businesses to come up with proposals of destinations where they see potential but are lacking in infrastructure,” he said.

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