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Indonesia economy held back by weak infrastructure

Jakarta, Indonesia (AP) - a month behind schedule, construction workers surrounded Indonesia traffic crowded capital complete road racing is blocked the locals and tumbledown graveyard, their ancestors is a certain group.
Talks on a new position has not yet reached an agreement, accept all the relatives, about 500 people were buried there. This did not stop authorities made a new cemetery short distance from the old -, meaningless, according to YaMan grows.
Said: "there is no way, we can agree that YaMan to hack through the thick red earth workers, in a afternoon shower shower." It will be too noisy, how should we pray, our ancestors? "
Indonesia has a booming economy. But, in order to maintain and deepen the development, the urgent need to new roads, Bridges, power plant and port. Land disputes, such as this one in the west Jakarta and host of other difficulties corruption budget drainage populism, and other infrastructure construction, a long and costly process. This is to prevent the development of the country to realize transition countries such as South Korea and China recently in the generation of that kind of experience.
Last week, the flood engulfed the about 30% of Jakarta, including the central business district, greatly exposed the decades of underinvestment 140000 urban drainage and flood control.
To be sure, in the western economic mess up the envy of the Indonesia the growth rate of more than 6%. Combined with political and social stability, it represents a dramatic change from Indonesia, 12 years ago, when the political crisis, separatist violence and fears of a recession led to a lot of island break.
In the past two years, the investment soared high China, for the country's coal, palm oil, rubber and rampant throughout the country consumer demand. Property prices doubled, and in the past 6 years in Jakarta downtown mall, hotel, housing estates and convenience stores have mushroomed in a new emerging middle class, in order to meet the big, small towns.
Some people doubt whether the country should now be sit together, Brazil, Russia, India and China "bricks" the club's new strength of emerging economies prosperity has left. Although the government is expected to the country will continue to attract investment, others doubt it will play its potential.
"Six, 7% is a good idea, but it can go to the next step 8 or 9, the government hope?" Gareth · skin said, in the Capital economy (Capital Economics) expert on Asian. "The main problem is that business environment still go against conditions need to what kind of economic growth all that."
, although jerry infrastructure, schools and hospitals, successive governments chose to keep fuel subsidies, for the country's 2.4 million people. Cheap fuel is likely to win the vote to election time, but it comes at a price. In 2011, the subsidy bill ran nearly 20 billion us dollars, the same amount of the government's goal in 2013 for infrastructure.
This number represents the 15% increase over 2012, but experts suspect the government will be able to have it all, because it has no ability to do so. Foreign investors can bring professional knowledge, but for many people, the country still is dangerous, because of corruption, the law and the uncertainty of the acquisition of land problem.
Political and social problems loom. The leading candidate for, replace the President susilo bambang yudhoyono · class bond · susilo bambang yudhoyono in the middle of 2014, most of them are old face, be regarded as champions, not reform of economic nationalism may. Labor disputes have rising trend, as a salary. Although poverty is declining, the income gap between the highest level in the world.
The country's investment chief dismissed concerns about economic protectionism, prediction although campaign speech and the contrary, susilo bambang yudhoyono's successor will be driven pragmatism.
"Who is the President in 2014, if they want to keep force, they need to provide employment opportunities, reducing poverty, and said:" : the buss Chatib. "Whether you like it or not, even if they become nationalism, need to have an open economic system.
In infrastructure challenges facing the travel, it around the country become clear: cut through the market traders overflow road, growled traffic between the major cities of the highway. The fruit is often more expensive than imports from China, because the transportation cost of capital area. Cement cost ten times as many as in the above, in Jakarta, the island was made by through the outdated port system.
The challenge is particularly evident, held in Jakarta. With the growing middle class, a car and motorcycle ownership. But in neighboring Bangkok, Kuala Lumpur and Singapore is different, the city did not establish a decent public transport. Therefore, commuter km (6 miles), often need to one and a half hours upward.
The construction of the west Jakarta part of the ring road, should be finished by the end of 2012, but in the path of the land, the locals have been particularly painful. Elsewhere, speculators - often and government officials in the league - to buy land prices have basically set up project to continue.



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