Indonesia proposes US$ 20 billion infrastructure investment

The Indonesian government has proposed a 2013 budget that would increase infrastructure spending in the country to IDR 194 trillion (US$ 20 billion), compared to IDR 169 trillion (US$ 18 billion) this year.

The budget proposal - which must be approved by the Indonesian parliament - includes plans to fund improvements to over 4400 km of roads, and to add 380 km of new railway as well as the construction of 15 new airports.

In addition, new laws are set to be introduced that plan to abolish some local regulations that clash with national regulations, and streamline approval processes in order to encourage more private investment.

The government said for the 2014 to 2016 period, it expects the country's economy to grow between +7% and +7.9% a year.