During 2005–2009, Indonesia’s overall infrastructure investment need was estimated at $65 billion, $16 billion of which was targeted to come from private sector investors.
Following the1997–1998 Asian financial crisis, Indonesia became highly aware of the need to deepen and diversify its finance sector. Under the Medium-Term Development Plan, 2004–2009 and the subsequent National Medium-term Development Plan, 2010–2014, the government thus committed to developing the country’s capital market and nonbank finance subsector.
In 2009, Indonesia’s vertically integrated, state electricity company, Perusahaan Listrik Negara (PLN) had an ambitious plan to invest about $1.2 billion in the electricity distribution sector during 2010−2014 to reduce distribution losses and carbon dioxide (CO2) emissions. PLN intended a large part of this plan to be financed by loans from bilateral and multilateral partners.
Just 2−4 years after it was severely hit by the 1997 Asian financial crisis, the Indonesian economy began to steadily recover. Real gross domestic product growth rose from 0.8% in 1998 to 2%–3% during 2000–2002 and reached 5.5% in 2006. Wide−ranging finance sector reforms accounted for much of this recovery.
Indonesia’s poor people declined from 32.53 million in March 2009 to 31.02 million in March 2010. Nevertheless, rural poverty remained high, partly because of continuing limited access to basic services and poor transport. In the urban areas where about half of the country’s 250 million people lived, only about 1% of had access to sewerage.
In our effort to provide our visitors the best user experience, we would like to hear your feedback. Do you have three minutes to answer a quick survey?
Evaluation-Lessons.org uses cookies to improve your user experience. To learn more, click here to view our cookie policy. By clicking on OK or continuing to use the site, you agree that we can place these cookies.
