Tue, 27 Oct 2009
From: Reuters
JAKARTA, Oct 27 (Reuters) - Indonesia's new presidential delivery unit will tackle stalled toll road, power plant, and mining projects in order to eliminate bottlenecks and speed up economic growth.

Southeast Asia's biggest economy needs to spend billions of dollars on upgrading and expanding dilapidated infrastructure, ranging from roads and railways to ports and power plants, but it has failed to attract much-needed investment because of problems over land acquisition and cost recovery.

Here are some key on-going infrastructure projects in Indonesia and their current status:

* TOLL ROADS

- In 2005, Yudhoyono's government announced plans to build about 1,000 kilometres of toll roads, including a 650 km section of the trans-Java toll road, and roads in South Sulawesi and North Sumatra.

Progress has been very slow, and so far only about 10 percent has been built, while another 10 percent is under construction.

* PUBLIC HOUSING

- In 2003 the government announced plans to build 1,000 towers, each consisting of about 100 flats, in order to provide affordable housing across the country, at a total cost of about 20 trillion rupiah ($2.11 billion).

So far, about 600 towers have been built, and the remainder is expected to be completed in 2011.

* POWER PLANTS

- The 10,000-megawatt power crash programme was launched in 2006 to meet fast-growing demand for power, and was due to be completed in 2011 at a total cost of $12 billion.

So far, about a quarter of the targeted power capacity has been built. By mid-2010, more new plants will begin operating, and about 70 percent of the capacity will have been built.

* COMMUNICATIONS

- The Palapa Ring project, in which Indonesia will install fibre-optic networks in all 33 provinces, is meant to be the backbone of the country's telecommunications infrastructure and provide affordable, high-speed broadband connection, at a total cost about $1 billion.

Currently, only Java, Sumatra and parts of Kalimantan have fibre-optic networks.

However, the project, which was launched in 2006, has been delayed because of the global economic downturn, which hit the consortium of local phone operators involved in the project. These include PT Telekomunikasi Indonesia Tbk (TLKM.JK), PT Indosat Tbk (ISAT.JK) and PT Bakrie Telecom Tbk (BTEL.JK).

* WATER

- In 2008, Indonesia announced plans to build 10 million new pipelines in order to provide clean water, particularly for households in rural and remote areas.

The total value of the project is estimated at 90 trillion rupiah, but so far, only about one fifth of the new pipelines have been installed. The whole project is expected to be completed in 2013.

Sources: Indonesia's Planning Ministry (Bappenas), state agency overseeing toll roads (BPJT), and Public Works Ministry.

($1 = 9,470 rupiah) (Reporting by Dicky Kristanto; Editing by Sara Webb)



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