Indonesia eyes faster growth

Indonesian president Susilo Bambang Yudhoyono on Friday unveiled a
plan to boost economic growth to as high as 9.0 per cent a year
between 2015 and 2025, from the 6.1 per cent expansion last year.
Southeast Asia's biggest economy will focus on investments in six
designated growth centres in four provinces, while slashing inflation
to 3.0 per cent annually, he said. 'With strong economic growth, we
will reduce poverty and unemployment rates,' the ex-general said in a
speech that elaborated on an economic expansion plan unveiled last
year. The government is offering incentives to private investors to
increase the contribution of investment to economic growth after
decades of relying primarily on household consumption. Long-term
targets hinge on attracting private investment of $465 billion until
2025. Direct foreign investment last year was $24.4 billion, according
to official figures. Economists have said property ownership rules
will have to be liberalised for foreigners, infrastructure will have
to be overhauled, corruption tackled and red tape in the form of
levies and taxes slashed. 'The biggest hurdles for infrastructure
(investments) are regulatory in nature — land acquisition, competing
regulatory jurisdictions, cost recovery issues, corruption, and lack
of effective disbursal of public funds, among others,' Citigroup said
in a report Friday. 'Unfortunately, near-term prospects for resolving
these issues remain uninspiring,' it added. The World Bank said
earlier this month that Indonesia, along with Brazil, China, India,
South Korea and Russia, would account for more than half of global
growth by 2025. Among the projects planned for the growth centres, PT
Weda Bay Nickel will invest around $5.8 billion to develop a nickel
and cobalt mine and a hydrometallurgical processing plant in North
Maluku.
---------------NEWAGEBD ONLINE