JAKARTA - Indonesian President Susilo Bambang Yudhoyono on Friday unveiled a plan to boost economic growth to as high as 9.0 percent a year between 2015 and 2025, from the 6.1 percent 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 percent 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 US$465 billion until 2025.
Direct foreign investment last year was US$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 US$5.8 billion to develop a nickel and cobalt mine and a hydrometallurgical processing plant in North Maluku.
South Korean steel maker Posco will work with PT Krakatau Steel to invest up to US$6 billion to build a steel plant in Banten, with annual capacity of up to five million tons.
And state-owned nickel and gold miner PT Aneka Tambang will invest around US$500 million to build a plant to produce chemical-grade aluminium in West Kalimantan, which is expected to be completed in 2013.
Development Planning Minister Armida Alisjahbana told reporters the government would spend around US$64 billion to build roads, railways, seaports, telecommunication and energy projects through 2015.
Source: http://www.channelnewsasia.com
Southeast Asia's biggest economy will focus on investments in six designated growth centres in four provinces, while slashing inflation to 3.0 percent 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 US$465 billion until 2025.
Direct foreign investment last year was US$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 US$5.8 billion to develop a nickel and cobalt mine and a hydrometallurgical processing plant in North Maluku.
South Korean steel maker Posco will work with PT Krakatau Steel to invest up to US$6 billion to build a steel plant in Banten, with annual capacity of up to five million tons.
And state-owned nickel and gold miner PT Aneka Tambang will invest around US$500 million to build a plant to produce chemical-grade aluminium in West Kalimantan, which is expected to be completed in 2013.
Development Planning Minister Armida Alisjahbana told reporters the government would spend around US$64 billion to build roads, railways, seaports, telecommunication and energy projects through 2015.
Source: http://www.channelnewsasia.com
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