Indonesia needs money but can it get its house in order?

Indonesia’s Vice President Jusuf Kalla, said on friday that the country needs 500 trillion rp (54.7 billion U.S. dollars) for infrastructure. That is a whopping figure, no matter where you are from. The VP listed areas such roads, housing, power plants where the money would be spent. My question is can Indonesia get its house in order, should they even manage to borrow this sum?

Indonesian President SBY is doing great things in trying to lock up corrupt government officials, but with thatk ind of cash splashing around, you’ve got to figure that the majority of it will end up in someone’s pocket. The way they do highway construction out here, is the local police chief, governor, contractor and other head honcho’s meet to discuss how the cash will be divided. That’s before the project starts. After some work is completed, the project is offered to other contractors, the original walking off with a chunk of the money. This happens a couple of times, and in the end there is not enough money to do the project. So the road ends up being narrower, the asphalt thinner.

In my opinion there needs to be a complete shake up in the court system. There has to be a place where individuals and companies, can take their case and be fairly heard. Failing that, its law of the jungle, not a climate for investment or infrastructure building. Education is vital, to shake the mentality that corruption is okay. Corruption is stupid!!! All it does is make sure the customer never comes back.

We hope Indonesia doesn’t ‘blow its wad’ on a big infrastructure program, only to end up with shakey results and big debt.