Indonesia's economic growth is slowed by poor transport infrastructure. This paper provides some rough estimates, generated using a regional CGE model (IndoTERM), of the possible benefits to Indonesia of reducing transport costs.
Indonesia's growth has long been constrained by sluggish infrastructure development. An often-cited example is Tanjung Priok port, which serves more than two-thirds of the country's international trade.
Scientists are forecasting that there may be a severe El Niño weather event lasting through mid-2016. For Indonesia, El Niño events are associated with prolonged drought, with adverse effects on food and cash crop production.