Regulations Key to Infrastructure, Analyst Says
The country needs leaders who can create a sustainable regulatory framework to guide the speedy development of infrastructure, rather than decision-makers who act quickly but put the country at risk in the process, a prominent analyst said.
Lin Che Wei, an analyst at PT Independent Research & Advisory Indonesia, said Boediono, the incoming vice president and former governor of the central bank, was one person capable of designing a master plan for the country’s ailing infrastructure.
“A lot of people believe Indonesia needs a breakthrough, someone who can push a project through,” Lin said.
“Keep in mind that at the same time, the country is adopting very stringent anticorruption measures. As a result, no government officers will dare to make any breakthrough.”
For this reason, “having a regulatory framework for infrastructure development is key,” he said.
Because of the poor quality of its infrastructure, Indonesia fell two spots to 53rd in the 2009 World Competitiveness Yearbook, based on a survey conducted by the Switzerland-based Institute for Management Development.
President Susilo Bambang Yudhoyono’s administration has been accused of not doing enough to develop infrastructure, while Boediono has been criticized by political opponents for being too focused on policy and lacking the skills to guide a project.
But Lin said that it was often better to avoid making a decision than to make a bad one.
“Making a decision is very easy, especially if you don’t consult with anyone,” he said. “You just make a decision and face the consequences later. But at the same time, it is very difficult to unwind the impact of a bad decision.”
Lin said Boediono had a tendency to avoid political disputes. “If there is a dispute, he’d prefer to focus on policy rather than people,” he said.
Bambang Susantono, a deputy minister in the Coordinating Ministry for Economic Affairs, on Thursday promised that the next administration would focus on infrastructure development.
He said the country had largely neglected infrastructure spending for more than a decade. Infrastructure spending accounts for about 2 percent to 3 percent of GDP, he said, while the international standard is between 4 percent and 5 percent.
He said that the government would prioritize spending on roads, shipping infrastructure, railways, basic water supplies and sanitation facilities.
Bambang said the effects of infrastructure spending took time to become obvious.
He said the government managed to complete the first phase of regulatory reform during Yudhoyono’s first term, and would focus on project development during his second term.
“We have revised legislation concerning shipping, railways, aviation, roads, water supplies and telecommunications,” he said, adding that a comprehensive regulatory framework would provide a stronger basis for developing new projects.
Lin Che Wei, an analyst at PT Independent Research & Advisory Indonesia, said Boediono, the incoming vice president and former governor of the central bank, was one person capable of designing a master plan for the country’s ailing infrastructure.
“A lot of people believe Indonesia needs a breakthrough, someone who can push a project through,” Lin said.
“Keep in mind that at the same time, the country is adopting very stringent anticorruption measures. As a result, no government officers will dare to make any breakthrough.”
For this reason, “having a regulatory framework for infrastructure development is key,” he said.
Because of the poor quality of its infrastructure, Indonesia fell two spots to 53rd in the 2009 World Competitiveness Yearbook, based on a survey conducted by the Switzerland-based Institute for Management Development.
President Susilo Bambang Yudhoyono’s administration has been accused of not doing enough to develop infrastructure, while Boediono has been criticized by political opponents for being too focused on policy and lacking the skills to guide a project.
But Lin said that it was often better to avoid making a decision than to make a bad one.
“Making a decision is very easy, especially if you don’t consult with anyone,” he said. “You just make a decision and face the consequences later. But at the same time, it is very difficult to unwind the impact of a bad decision.”
Lin said Boediono had a tendency to avoid political disputes. “If there is a dispute, he’d prefer to focus on policy rather than people,” he said.
Bambang Susantono, a deputy minister in the Coordinating Ministry for Economic Affairs, on Thursday promised that the next administration would focus on infrastructure development.
He said the country had largely neglected infrastructure spending for more than a decade. Infrastructure spending accounts for about 2 percent to 3 percent of GDP, he said, while the international standard is between 4 percent and 5 percent.
He said that the government would prioritize spending on roads, shipping infrastructure, railways, basic water supplies and sanitation facilities.
Bambang said the effects of infrastructure spending took time to become obvious.
He said the government managed to complete the first phase of regulatory reform during Yudhoyono’s first term, and would focus on project development during his second term.
“We have revised legislation concerning shipping, railways, aviation, roads, water supplies and telecommunications,” he said, adding that a comprehensive regulatory framework would provide a stronger basis for developing new projects.