"Indonesia has the potential to see dynamic economic growth in the upcoming years. Infrastructure development is of great significance to boost economic growth needed by Indonesia to create more jobs and reduce poverty," ADB Managing Director General Rajat M Nag said in a press briefing on the sidelines of the World Economic Forum on East Asia (WEF-EA) here on Sunday.
Infrastructures are long-term investment, he said adding the quality of Indonesia`s infrastructures is still lower than those of other ASEAN member countries.
"Inadequate and low quality infrastructures are particularly found in transportation networks, power supplies and irrigation systems in several provinces," he said.
He added however that Indonesia has made significant progress in good governance over the past few years.
"Hopefully, the government can control the political situation because (uncontrolled political) situation can have a detrimental impact on the investment climate," he said.
He said commitment to good governance is of great significance for Indonesia to pioneer the attainment of more balanced and evenly economic growth.
"Many developing nations in Asia are still bad in terms of good governance and this must be changed to boost high quality growth coupled with good financial management," he said.
He said uneven and low quality education and poor health services were also among the negative catalysts of investment climate. (*)
Editor: Kunto Wibisono
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