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Jakarta Post

MP3EI infrastructure projects flounder as govt fails to act

  • The Jakarta Post

Jakarta   /   Fri, August 31 2012   /  07:12 am

In February last year, President Susilo Bambang Yudhoyono touted a policy to develop economic corridors on five major islands under the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI). However, little progress has been made. The Jakarta Post’s Hans David Tampubolon, Nurfika Osman and Rendi A. Witular explore the issues.

The construction of Sei Mangke special economic zone in North Sumatra may be the latest example of how investors are being hindered by severe and costly burdens, as well as time and legal uncertainties, in dealing with bureaucracy.

Designed to be one of the six economic corridors to be developed under the MP3EI, the project is currently in a hiatus after the Simalungun district administration, which oversees the zone’s location, refused to rezone the land from agricultural use to commercial development.