Financial Times FT.com

Indonesia encourages more infrastructure spending

By Shawn Donnan and Taufan Hidayat in Jakarta

Published: January 25 2005 11:19 | Last updated: January 25 2005 11:19

Indonesia’s central bank on Tuesday opened the way for domestic lenders to allocate more loans to infrastructure projects as the new government prepares for a spending spree on roads, power plants, and other projects in the coming five years.

Since taking office last October, the administration of President Susilo Bambang Yudhoyono has promised to boost the lagging Indonesian economy by increasing infrastructure spending, something investors argue is badly needed.

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