Tuesday, November 8, 2011

This is What Happens When You Don't Spend on Infrastructure

From the FT:

Rows of cargo containers clutter the tarmac outside an overflowing warehouse at Jakarta’s airport where there are not enough landing slots for all the planes. The chaotic scene offers the most graphic illustration of how strong economic expansion is straining Indonesia’s worn out infrastructure just as it emerges, once again, as a regional power.

The young democracy of 240m may be booming, but the situation at the capital’s airport epitomises one of the biggest problems holding back south-east Asia’s largest economy: its roads, ports, power plants and bridges have fallen far behind its needs because of years of government underspending.