The New Nation - Internet Edition

Reuters, Jakarta

Heavy rains and high tides have caused chaos in Indonesia's capital for three days, highlighting its ailing infrastructure as roads to the airport became impassable and thousands had to abandon their homes or cars. The flooding also led to flight delays elsewhere in Southeast Asia and served as a reminder to many travelers, including the investors and bankers that Indonesia most needs to attract, of the country's widespread structural problems. Indonesia requires billions of dollars of investment to build or modernize its airports, roads, railways, and power plants. Its economic growth has lagged far behind that of China and India, in part because of ailing infrastructure, and the government wants to privatize a raft of state companies, from steel plants to palm oil plantations, to raise much-needed funds. But following the chaos on Friday, when the capital was brought to a standstill and thousands of people were trapped in traffic jams for over 12 hours due to flooding, some of the very financiers that Indonesia needs to help fund new infrastructure have vowed to avoid the place.