Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Infrastructure  >>   Lack of infrastructure hurting Indonesia
NEWS UPDATES Asean Affairs     6 October  2011                    

Lack of infrastructure hurting Indonesia

Related Stories

October1, 2011
Indonesian building surge calls for cement

August 22, 2011
 Indonesia closes tin tax loopholes

August 2, 2011
Indonesia could lower palm oil tax

July 1, 2011
First Malaysian palm oil refinery in Indonesia

June 27, 2011
Indo government puts controls on sugar

March 31, 2011
New Indo palm oil factory starts

March 19, 2011
New Indo Nickel Smelter and Power Plant


Shortcomings in Indonesia’s infrastructure have contributed to a major lack of competitiveness for domestic manufacturers, causing many to get out of the business altogether, according to the outgoing chairman of a business association here.

Erwin Aksa, the outgoing chairman of the Indonesian Young Entrepreneurs Association (Hipmi), which represents more than 25,000 business owners, the majority of which operate small- to medium-sized enterprises, delivered his assessment on Monday to a handful of media organizations.

“Many manufacturers choose to become traders because it is more profitable,” said Erwin, who was coming off a 15-city trip to assess economic conditions in the country.

“It is very sad. Can you imagine household equipment makers, producers of nails, toys, they struggle to compete with cheap imported Chinese goods.”

Erwin said that while Indonesian businesses struggle with high logistics costs, an erratic power supply, high interest rates and a perception among lenders that they are high-risk, Chinese goods were flooding the nation.

The influx of goods has contributed to a $3.5 billion trade deficit with China since January, data from the central statistics agency (BPS) showed.

The difficulty in competing has in the last five years caused the number of medium- to large-sized companies to dwindle. Erwin cited another BPS statistic that showed the number of such companies had fallen from 29,500 in 2006 to 25,000 now.

“I haven’t seen significant changes in infrastructure here,” said Erwin, president director of the Bosowa Group, a conglomerate whose activities span infrastructure, power plants, shipping, energy, cement production, automotive dealerships, media and banking.

Erwin cited the lagging development of national ports and a stable energy supply as major stumbling blocks for business competitiveness. He also singled out stalled construction on a number of planned toll roads. Since four years ago, he said, only three new toll roads had been built in Indonesia.

The sorry shape of Indonesia’s infrastructure, Erwin said, is responsible in part for the country’s low ranking in the World Economic Forum’s Global Competitiveness Report. Indonesia placed only 82nd out of 144 countries surveyed, far behind neighbors Singapore at number 2 and Malaysia at 23.

Erwin said these factors had limited the country’s manufacturing sector to an annual growth rate of only 5 percent, far below what it was before the Asian financial crisis of 1997-98 when the industry grew at rates of up to 20 percent per year.

“The government must have a breakthrough to make our businesspeople more competitive,” he said

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    6  October  2011 Subsribe Now !
• Cambodia welcomes MOU on oil areas Subcribe: Asean Affairs Global Magazine
• Indonesia boosts Jakarta infrastructure Asean Affairs Premium

• Lack of infrastructure hurting Indonesia

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippines proposes energy stockpile
• Singapore PM tells Chinese to raise game
• PTT may buy cheap assets
• Central bank cautions on stimulus
• Sex selection rises in Asian countries  pp

Asean Analysis              6  October  2011

Advertise Your Brand
• Floods in Cambodia, Thailand and Vietnam Sponsor Our Events

Asean Stock Watch      October  2011

• Asean Stock Watch-October 6 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand