[Kabar-indonesia] RI facing seven main economic development problems, says ADB

[Joyo at aol.com]

Indonesia facing seven main economic development problems,
says ADB

Jakarta, November 1 (Antara News) - The Asian Development
Bank (ADB) said Indonesia faced seven main problems in its
economic development, poverty alleviation and reducing the
unemployment, as projected in the National Medium-Term
Development Plan, an official said.

The seven main problems include inconducive investment
climate, limited infrastructure development, undeveloped
financial sector, low decentralization capacity, incorrect
management of natural resources, low development spendings
and ailing public sector management, ADB vice president C.
Lawrence Greenwood said here on Tuesday.

Greenwood said that the inadequate infrastructure
development was the result of lack of project designing,
executing capacity and limited funding, although the
government has projected an investment of US$65 billion this
year.

According to the ADB, despite the government`s hope for
private sector role in the building of infrastructure
projects, additional products for non-bank investment would
be necessary.

Meanwhile, ADB chief economist Ramesh Subramaniam said 85
percent of investment projects was funded by banks.

The ADB, therefore, would support the Indonesian
government`s efforts of solving the problems and help it
reach its two aims, namely stable economic growth and the
Millennium Development Goals.

The Asian Development Bank (ADB) would make efforts to
catalyze investments in the public and private sectors
through reforms in the macro-economy, infrastructure,
finance, infrastructure investment selection, and private
capacity development projects, in order to revive the
economic sector and lower the unemployment rate.

The ADB would focus its mission on a balanced, transparent
and sustainable fiscal decentralization to help provincial
administrations restore the quantity and quality of public
services.

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Joyo Indonesia News Service
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