Indonesia Set to Abandon Major Infrastructure Schemes

• 30 May 2018
• Construction Focus
• 1385 Views

The Indonesian government is set to drop 14 major infrastructure projects worth an estimated USD19 billion if they are unable to pass a number of stress tests by the end of President Widodo’s current term.

Hampered by a lack of progress, the projects include railways in Kalimantan and South Sumatra, plus several airports and seaports in Java.

The targeted projects “have land (acquisition) problems, investor problems, and even there are problems related to the feasibility of the project itself,” Transportation Minister Budi Karya Sumadi told reporters.

Despite 222 projects remaining on the administration’s list of “ strategic projects”, the nation is struggling with its ambitious infrastructure program. The announcement follows a halt of major transport projects after a number of accidents and a report found that 80 percent of construction projects in Jakarta were unsafe.