"Only 2 percent of the $1.18 billion allocated to infrastructure under the government's stimulus package had been disbursed by the end of May. This is shocking given the urgency of upgrading the country's creaking infrastructure. Bureaucratic red tape, new tender procedures and inefficiencies have stymied the disbursement of funds for a host of projects, from highways, power plants and ports to the vital upgrading of schools, hospitals and public markets.
Given the sorry state of the nation's infrastructure, it is no secret that execution is the weak link in our ability to undertake large public projects. It is also widely accepted that without new infrastructure, the economy will not grow at a faster rate and Indonesia will be left clutching at the coattails of countries such as China and India." |