Driver Overview
This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).
Rank
Score /100
Best practice
Metric Overview
Strengths
Financial stability
Indonesia’s financial stability is above the average of 83 for Lower Middle Income Countries. Stable financial markets facilitate the smooth flow of funds between infrastructure assets and investors. However, the impact of the COVID-19 pandemic is a concern.
Cost to start a business
According to the World Bank, the cost of starting a business in Indonesia is 5.7% of income per capita, having significantly improved from 19% in 2016, easing the entry of new firms.
Time required to start a business
According to the World Bank, it takes 10 days to start a business in Indonesia, which is significantly faster than the Lower Middle Income Countries average of 20.4 days. Indonesia recently reviewed the process to start a business, reducing it from a 23 days in 2016.
Top Performing Metrics
Top Performing Metrics
This is defined by the metrics with the highest unweighted score out of 100.
Financial markets:
Financial stability
Permits:
Cost to start a business
Permits:
Time required to start a business
Opportunities to Grow
Average procurement duration – transaction RFP
At 53 months, Indonesia has one of the highest durations from announcement of a tender to contract award. Lengthy procurement durations add costs, risks and down time to contractors bidding for and investing in infrastructure projects.
Stocks traded
At 10% of GDP, Indonesia’s value of stocks traded is below the Lower Middle Income Countries’ average of 14% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.
GDP per capita
Indonesia has a low GDP per capita of USD 4,163 but is growing at a long-term average rate of 7.4% per annum. High growth, should it not be overly impacted by COVID-19, can be expected to correlate with greater infrastructure spending.
Metrics to Improve
Metrics to Improve
This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.
For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.
Procurement:
Average procurement duration – transaction RFP
Financial markets:
Stocks traded
Funding capacity:
GDP per capita
Detailed Data
This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017.
Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset.
Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.
28.2%
The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.
20.7%
World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.
18.1%
Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.
15.1%
Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).
12.8%
Political stability and absence of violence score
Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.
5%
Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.
Indonesia
Lower-middle Income Countries Average
Description
The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.
Weighting (% of Driver)
28.2%
Source Link
Description
World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.
Weighting (% of Driver)
20.7%
Description
Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.
Weighting (% of Driver)
18.1%
Source Link
Description
Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).
Weighting (% of Driver)
15.1%
Source Link
Description
Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.
Weighting (% of Driver)
12.8%
Description
Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.
Weighting (% of Driver)
5%
Source Link
Country Overview Data
4,361 USD
Population272.2 million persons
67.7 (0-100 best)
Infrastructure investment5.0% of GDP
Infrastructure gap0.2% of GDP
1,112 USD billion
GDP growth rate5.0%
GDP per capita growth rate7.6%
Gini coefficient38.1 (0-100 worst)
Gross Government Debt30.0% of GDP
Inflation rate3.2%
Summary credit rating58.0 (0-100 best)
Unemployment rate4.4%
Urbanisation ratio55.0% of total population
Road connectivity59.8 (0-100 best)
4.2 (1-7 best)
Efficiency of train services4.7 (1-7 best)
Efficiency of air transport services4.9 (1-7 best)
Efficiency of seaport services4.3 (1-7 best)
Electricity access94.8% of population
Electricity supply quality9.1% of output lost
Exposure to unsafe drinking water35.8% of population
Reliability of water supply4.8 (1-7 best)
Digital Adoption Index0.5 (0-1 best)
Mobile-broadband subscriptions87.2 per 100 population
Fixed-broadband Internet subscriptions3.3 per 100 population