Thursday, 27th November 2014

LIPI: Indonesian infrastructure inferior to India, China

Kamis, 19 Januari 2012 23:52 WIB | 2.570 Views
Jakarta, (ANTARA News) - Economic researcher of the Indonesian Science Institute (LIPI) Latif Adam said infrastructure facilities in Indonesia are still inferior to those of India and China.

"In the 2005-2011 period, Indonesia`s infrastructure had increased by 25.5 pct, but actually still far from the infrastructure spending ratio against the Gross Domestic Product (GDP) of five pct," Latif said in Indonesia Infrastructure Outlook 2012 in Jakarta on Thursday.

Latif said the 2011 infrastructure spending amounted to Rp141.0 trillion with a 2.1 pct ratio, while in 2012 it amounted to Rp161.4 trillion with a ratio of 2.2 pct.

"It increased indeed, but it was actually still far from the ideal infrastructure spending ratio of five pct," Latif said.

Latif added that the infrastructure spending elasticity coefficient reached only 0.17 pct of the Indonesian growth rate of one pct. In the meantime, China has reached 0.33 pct and India 0.21 pct against the one pct economic growth in these countries.

"This means that our infrastructure sector is still lacking in efficiency," Latif said.

Latif hoped the government would be able to optimize its infrastructure sector not to become behind those of other countries.  (*)