JAKARTA – Indonesia’s government has proposed boosting capital spending on infrastructure to Rp 290 trillion (US$23 billion) this year, a doubling of last year’s Rp139 billion that is intended to drive much-needed development across the archipelago. Aziz Pane, chairman of Indonesia’s Tyre Manufacturers Association, blames lagging investment in infrastructure for problems including inefficiencies and high costs in Indonesia’s rubber and other agricultural sectors. “We need roads, we need harbors,” Pane said. “That is both for farmers getting raw material to producer, and for producer distributing later on.”
JAKARTA – Despite the threat of political opposition and public protests, Indonesian President Joko Widodo this week raised fuel prices in a move he said will free up revenue for infrastructure improvements and social spending. Aziz Pane, chairman of Indonesia’s Tyre Manufacturers Association, said that his group had been calling on successive governments to allocate more money to improving Indonesia’s infrastructure, which means cutting the fuel subsidy. “But they have all been afraid of the oil mafia,” he told The Edge Review.
JAKARTA — The head of Indonesia’s main rubber producers’ group has warned that the industry faces decline unless President-elect Joko Widodo takes urgent action to improve the country’s infrastructure. Daud Husni Bastari, chairman of the Rubber Association of Indonesia, said Widodo must deliver on campaign pledges to improve infrastructure. “We need ports, we need roads,” Daud told the Nikkei Asian Review.