Country Overview
As one of Southeast Asia’s largest economic and population hubs, Indonesia is favourably positioned to continue expanding its infrastructure activities. Underpinning this momentum are reforms that have increased the efficiency of permit processes, with associated costs and times to start a business reduced significantly since InfraCompass 2017. To further expand capacity, Indonesia could enact policies that seek to shorten procurement durations and increase liquidity in its stock market.
See Full Overview Data
GDP per capita
4,164 USD
Population
267.0 million persons
Infrastructure quality
67.7 (0-100 best)
Infrastructure investment
5.0% of GDP
Private infrastructure investment
3,658 5-year average, USD millions
Infrastructure gap
0.2% of GDP

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).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

23
2
64.9
Top performer
42
2
60.0
Contender
40
10
70.9
Contender
20
1
94.4
Top performer
59
1
61.6
Aspiring
41
9
33.9
Contender
40
6
36.5
Contender
38
4
33.7
Contender

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.

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. 

Lower middle income country average

Financial markets:
Financial stability

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.

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.

Lower middle income country average

Financial markets:
Stocks traded

Funding capacity:
GDP per capita

Detailed Data

This section shows country data for each of the 41 metrics. 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.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Indonesia

Lower middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

65.1 (+1.3)
31.4

20.7%

Rule of law

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.

43.7 (+0.6)
41.5

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

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).

60.0 (+10.0)
34.2

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.

41.1 (-2.7)
38.7

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Indonesia

Lower middle Income Countries Average

65.1 (+1.3)
31.4
43.7 (+0.6)
41.5
Yes
-
60.0 (+10.0)
34.2
41.1 (-2.7)
38.7
Yes
-

Country Overview Data

As one of Southeast Asia’s largest economic and population hubs, Indonesia is favourably positioned to continue expanding its infrastructure activities. Underpinning this momentum are reforms that have increased the efficiency of permit processes, with associated costs and times to start a business reduced significantly since InfraCompass 2017. To further expand capacity, Indonesia could enact policies that seek to shorten procurement durations and increase liquidity in its stock market.
GDP per capita

4,164 USD

Population

267.0 million persons

Infrastructure quality

67.7 (0-100 best)

Infrastructure investment

5.0% of GDP

Private infrastructure investment

3,658 5-year average, USD millions

Infrastructure gap

0.2% of GDP

GDP

1,112 USD billion

GDP growth rate

5.0%

GDP per capita growth rate

7.6%

Gini coefficient

38.1 (0-100 worst)

Gross Government Debt

30.0% of GDP

Inflation rate

3.2%

Summary credit rating

58.0 (0-100 best)

Unemployment rate

4.4%

Urbanisation ratio

55.0% of total population

Road connectivity

59.8 (0-100 best)

Quality of road infrastructure

4.2 (1-7 best)

Efficiency of train services

4.7 (1-7 best)

Efficiency of air transport services

4.9 (1-7 best)

Efficiency of seaport services

4.3 (1-7 best)

Electricity access

94.8% of population

Electricity supply quality

9.1% of output lost

Exposure to unsafe drinking water

35.8% of population

Reliability of water supply

4.8 (1-7 best)

Digital Adoption Index

0.5 (0-1 best)

Mobile-broadband subscriptions

87.2 per 100 population

Fixed-broadband Internet subscriptions

3.3 per 100 population