Indonesia’s Infrastructure and Growth

PT Pertamina workers repair an old oil well for reactivation in Tarakan, Indonesia's East Kalimantan province, on February 9, 2011 (Beawiharta Beawiharta/Courtesy Reuters).

Yesterday on CFR’s Asia Unbound blog, CFR fellow Joshua Kurlantzick suggested that resource nationalism could threaten Indonesia’s economic development. As he argues:

There is certainly nothing wrong with Indonesians, and Indonesian ministers, wanting to control how their infrastructure is developed, and how their abundant resources are extracted and used; too often in the past, before the devolution process of the 2000s, Indonesians in many parts of the country felt that they saw little benefit from the natural resources extracted from Indonesian waters and soils. Still, Indonesia has enormous deficits in physical infrastructure, and if it is to retain the 6-7 percent annual growth rates it expects over the next decade, taking its place among the highest-powered developing economies, this huge infrastructure gap must be addressed.

You can read the full post here.