State-owned airport services company Angkasa Pura II, which operates airports in the western part of Indonesia, says construction of the third runway of the Soekarno-Hatta International Airport (located just outside Jakarta) will start in April 2017. This new runway, which requires about IDR 2 trillion (approx. USD $150 million) worth of investment, is expected to be ready for use in mid-2018. Soekarno-Hatta International Airport, the country's main port of entrance, is target of an ambitious expansion and renovation program with the aim to boost competitiveness by raising the airport's passenger capacity and flight frequency.

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The government of Indonesia needs to be more aggressive and innovative to find new sources to fund its ambitious infrastructure development program. To achieve its infrastructure targets, the government will need to find ways to entice the private sector because public funds are limited. So far, however, the private sector is hesitant to engage in capital-intensive and long-term investment in a country where the investment climate is not optimal.

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On 12 February 2017, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve political, social and economy-related topics such the Jakarta gubernatorial election, Indonesia's GDP growth, credit ratings, nautical tourism, rice production, legal certainty, investment, balance of payments, much more.

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Cement consumption in Indonesia fell to 5.27 million tons in January 2017, down 2.3 percent year-on-year (y/y) from the same month one year ago. This decline was blamed on the intense rainfall in the nation's regions that managed to obstruct progress with various projects. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said the decline in cement demand was seen in nearly all regions, including Sumatra, Java, Kalimantan, and Nusa Tenggara.

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