In the less developed regions (Daerah Tertinggal, or ‘LDRs’) of Indonesia the quality of infrastructure services can be well below national standards. This includes limited access to water, sanitation, and electricity, underdeveloped ports, and unsuitable waste management. Various common challenges to improved service delivery include fragmented institutional structures, poor cost recovery, limited human resources, lack of public investment, and poor asset management, all working to limit economic growth and constrain living standards.
The Government of Indonesian (GoI) has long had an objective of promoting economic development in laggard/Eastern regions to overcome income and price disparities. This includes promoting connectivity, and development in a range of sectors, some of which will be covered in this summary.