ICOR, Weda Bay, and the Math of Making Things Work in Indonesia

Discover how Weda Bay defies Indonesia’s investment inefficiency, what drives its success, and the challenges of scaling it.

Once upon a time, something peculiar happened. While Indonesia’s national ICOR (Incremental Capital-Output Ratio) hovered at 6.2, signaling that investment is mostly a faith-based activity, a curious little industrial zone named Weda Bay went ahead and reported an ICOR of 2.

Two. As in, you put money in, and something productive actually comes out. It’s …