Erwida Maulia, Jakarta – An economist warned here on Tuesday that Indonesia will likely not be able to benefit from the gloomy economic outlook looming over developed markets if it fails to improve its infrastructure.

Chief Economic Minister Hatta Rajasa said earlier on Monday that the government was expecting more foreign funds to enter Indonesia as risks here were minimal compared to uncertainties in the world's major economies.

"But the most crucial problem about [investing] in Indonesia is its infrastructure. If the government doesn't soon tidy it up, we won't be able to seize the opportunities," Bank International Indonesia chief economist Juniman said in a phone interview with The Jakarta Post.

He suggested that the government push forward the deliberation of the land procurement bill at the House of Representatives, adding that it could provide more certainties for foreign investors.

As for short-term solutions, Juniman said, the government should provide more incentives, such as in the form of tax holidays, especially in the field of foreign direct investments.

"And it's important for the government to preserve the economic stability; thus the inflation rate should be kept low, and the BI [Bank Indonesia] rate shouldn't be raised." Juniman added the US and Europe debt crises wouldn't likely hurt Indonesia's economic growth in the second half of the year, which was estimated to reach between 6.3 and 6.5 percent. But, it would likely hurt the growth in the middle and long term.