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Infrastructure investment in Indonesia: process and impact

29 June 2009

Promotie: Moh. Mustajab, 11.00 uur, Academiegebouw, Broerstraat 5, Groningen

Proefschrift: Infrastructure investment in Indonesia: process and impact

Promotor(s): prof.dr. J. van Dijk, prof.dr. P.H. Pellenbarg

Faculteit: Ruimtelijke Wetenschappen

 

Mustajab’s study on infrastructure focuses on three subtopics: understanding the decision-making process of infrastructure investment; investigating the economic impact of infrastructure on the national output or gross domestic product (GDP); andexamining the relative importance of infrastructure in the regional location of foreign direct investment (FDI). To conduct the analysis, Mustajab focuses on Indonesia.

Mustajab reports four main results.

First, based on the descriptive data, his analysis shows that infrastructure in Indonesia needs to improve both qualitatively and quantitatively. Though several attempts have been made by the central government to rectify the problems, two issues remain: complexity of the decision-making process in the new environment with multi-actor involvement; and the imbalanced infrastructural growth among regions.

Second, Mustajab finds evidence that, in line with social and environmental changes, decision making in infrastructure investment could be seen as a series of rounds, where decisions are taken in various arenas as an outcome of a series of interactions among multiple actors.

Third, the analysis reveals that there are positive and significant signs of impact of infrastructure in the long-run economic output relation. Finally, Mustajab shows that road infrastructure is found to be positive and significant as a factor that contributes to FDI location, and also has a neighboring effect. The long-term effects of infrastructure, market factor, education and government policy (Indonesian Economic Development Zone-IEDZ) are found to be positive for local effect, neighbor effect and total effect.

 

Last modified:15 September 2017 3.39 p.m.
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