Indonesia’s large population and strong domestic demand is contributing to its positive growth outlook. With a population of 250 million, over 50% of whom live in urban areas, Indonesia has a large domestic market. And, a growing and affluent middle class supports GDP growth, where approximately 60% of GDP is derived from private consumption1.
Infrastructure is a strong platform to support and sustain economic growth in Indonesia
Underpinning this positive outlook is the Government of Indonesia’s pledge to improve infrastructure development. There is a significant need for infrastructure investment in roads, toll roads, ports, airports railways, water, and power plants. The Jokowi administration’s plan for 2015-2019 increases infrastructure funding compared to the previous period by nearly10 billion dollars a year. Priority projects include the revitalization of 10 airports, a number of thermal and hydropower plants, toll roads, Mass Rapid Transit and the construction of new and upgrading of existing ports.