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The Indonesian government, through the Coordinating Ministry for Economic Affairs, revealed that the implementation of infrastructure development projects categorized as national strategic projects is not progressing well. The biggest obstacle is land acquisition, accounting for 44 percent of the delays. Other significant hurdles include planning and preparation (25 percent), funding limitations (17 percent), and licensing issues (12 percent).
Land acquisition problems pose a major obstacle, causing delays in land procurement for national strategic projects beyond their scheduled timelines. This is partly due to protracted negotiation processes and the high cost of land acquisition. Furthermore, the government's budgetary mechanism requires that funds be spent within the fiscal year. This has resulted in a mismatch between the allocated budget and the actual land acquisition progress.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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