"Uncertainties affecting resolution of land acquisition problems has been a factor hampering expansion on infrastructure so that the growth of infrastructure credits has been sluggish."
Jakarta (ANTARA News) - Bank Indonesia (BI) Deputy Governor Halim Alamsyah said land acquisition problems caused by the absence of pertinent and clear regulations have been hampering the growth of infrastructure credits.

"Uncertainties affecting resolution of land acquisition problems has been a factor hampering expansion on infrastructure so that the growth of infrastructure credits has been sluggish," Alamsyah told ANTARA News in Jakarta on Tuesday.

He added land problems were actually classical ones which had for many years been an obstacle in the development of infrastructure in Indonesia. BI hopes that these land problems can be solved in the near future.

Separately, Coordinating Minister for Economic Affairs Hatta Rajasa said the government would keep on expediting development of infrastructure and, therefore, it would strive to eliminate bureaucratic red tape through revising previous regulations and accelerating enactment of a law on land acquisition.

"We will revise the law and regulations to support the development of infrastructure. We realize there are many obstacles but we will minimize the risks related to land prices. We hope the revision will be finalized this year," Minister Rajasa said.

BI data shows that the outstanding credit for infrastructure sector up to last February rose 1.2 trillion rupiahs becoming 81.03 trillion rupiahs from 79.79 trillion rupiahs in January 2011.

Out of the 81.03 trillion rupiahs, credit for toll road projects 6.81 trillion rupiahs, artery road 5.08 trillion rupiahs.

Agreements on infrastructure credits valuing 50.44 trillion rupiahs with the amount withdrawn was 31.34 trillion rupiahs in 2009. In 2010, credit agreement amounted to 39.80 trillion rupiahs, of which the amount withdrawn was 20.78 trillion rupiah.

For 2011 until February credit agreement amounting to 1.14 trillion rupiahs, of which 123 billion rupiahs was withdrawn.
(Uu.KR-VFT/HAJM/O001)

Editor: Priyambodo RH
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