Biggest problem is the infrastructure development of land

Chatib Basri

Biggest problem is the infrastructure development of land

Finance Minister Chatib Basri said the biggest problem in Indonesian infrastructure development is land .

" The main problem is not financing , but the preparation of the project and the land , " he said after opening the International Seminar on " Avoiding the Middle Income Trap " in Nusa Dua , Bali , on Thursday .

Chatib said the allocation of infrastructure spending in the state budget has not been adequately perceived , is not an inhibitor of infrastructure development , especially a lot of investors are interested in investing through the PPP scheme .

" Many investors are willing to finance through PPPs , but land acquisition is difficult . So although the allocation of infrastructure spending rises, it does not mean the issue is resolved immediately , " he said .

Chatib exemplifies Bali toll road construction built on the sea , which does not require land acquisition , an example that Indonesia could build infrastructure quickly and adequately .

" It appears that the presence of a mature project preparation , we can build a toll road on the sea that does not require land in less than a year , " he said .

Chatib explain the improvement of infrastructure is one of the important indicators for Indonesia to escape the middle income trap , but it can not be done in the near future and a long-term effort .

To that end , the government focused on short -term improvement by giving incentives research and development ( R & D ) for the company , to promote the quality of human resources and productivity that generate high added value .

" We provide incentives for certain sectors and certain activities , for example R & D for innovation . Innovation does not have to jump high , but can be used for the manufacturing , agriculture and mining , " he said .