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Tackling the Infrastructure Challenge in Indonesia

  • Mauro Pisu

Indonesia.s infrastructure is in poor shape, having suffered from protracted under-investment since the Asian financial crisis of the late 1990s, and constraints growth potential. This paper focuses on the current state of the regulatory framework and discusses different options for improvement in order to attract needed private investment. It recognises the ambitious reforms undertaken by the government thus far, but suggests that further efforts are needed. The authorities should establish a simple regulatory environment based on effective regulatory agencies resulting in lower regulatory uncertainty and realign prices to cost-recovery levels. This Working Paper relates to the 2010 OECD Economic Review of Indonesia ( Relever le défi de l'infrastructure en Indonésie L.infrastructure indonesienne est en mauvais etat, ce qui tient au sous-investissement persistant dont elle a souffert depuis la crise financiere asiatique de la fin des annees 90, et bride le potentiel de croissance. Le present chapitre analyse l.etat actuel du cadre reglementaire et examine les differents moyens de l.ameliorer de maniere a attirer les investissements prives necessaires. Il tient compte des reformes ambitieuses auxquelles les autorites ont procede jusqu.a present, mais tend a demontrer que de nouveaux efforts s.imposent. Les autorites devraient etablir un cadre reglementaire simple s.appuyant sur des organismes de reglementation efficaces, ce qui attenuerait l.incertitude en la matiere et alignerait les prix sur le niveau de recuperation des couts. Ce Document de travail se rapporte a l.Etude economique de l¡¯OCDE de l¡¯Indonesie 2010 (

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 809.

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Date of creation: 26 Oct 2010
Date of revision:
Handle: RePEc:oec:ecoaaa:809-en
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