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Kenneth Fukuda

"Time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future."
U.S. President John F. Kennedy




Indonesia is the strongest economy in Southeast Asia.  Moreover, Indonesia is one of the world's fastest growing economies.  Its growth, size and stability recently gained an important credit Fitch upgrade at at time when Western countries have suffered downgrades.

However, Indonesia’s economy has an infrastructure overwhelmed by the growth.  The problem is obvious when the rainy season causes floods in Jakarta, its capital and several other cities.

Tropical deluges cause Jakarta's gridlock.  Indonesia has overcrowded railways and transport systems.  Workers need to spend an inordinate amount of their compensation and time on travel to and from work.

Public spaces need to accommodate all residents.  Public spaces are occupied by wealthy residents.  Reduction of noise and pollution are targeted goals.  Crowded trains cause bottlenecks, expensive commuting costs and passengers to suffer.  Also, freight transportation costs are inordinate.

The economy of Indonesia is growing at over 6.0 percent annually.  The government is spending 3 percent of its GDP on infrastructure.  

After the government increases infrastructure spending, Indonesia’s growth will compare to that of China.  China’s economy has been growing at 8% annually because it is spending 9% on infrastructure spending.

Indonesia’s energy policies provide subsidies for private vehicles that makes driving private vehicles such as motorbikes cheap enough that they compete with public transport.

The Vice Minister of Transportation is committed to improving the quality of life and to reducing traffic in the city center.

On Dec. 15, 2011, Fitch ratings agency increased Indonesia's credit rating to investment grade.  The reasons include Indonesia's political stability, relatively low public debt and robust consumer demand from a growing middle class.  At the same time, the inadequate infrastructure was also described.


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