Transport in Indonesia

When the Bank designed a set of projects in the mid-1980s to strengthen Indonesia's transport infrastructure, which was becoming overburdened by the country's rapid economic growth, efforts focused on the technical aspects of implementation. There was little attention paid to institutional or political issues. Operations Evaluation Department's (OED) evaluation of the projects has confirmed that context is important. While the projects were rated as satisfactory in meeting their physical targets, when looked at as a program, it was apparent that they were all negatively affected by the weak institutional environment. The failure to address this problem resulted in four out of the five projects having only modest institutional impact and uncertain sustainability over the long term.