12 Oct Building the Economy through Improving Infrastructure : A Part of Jokowi’s Nawacita (9 Priority Program)
Currently, Indonesia is focusing on building infrastructure. Under President Joko Widodo, Indonesia aims to boost its infrastructure development. Especially, Jokowi’s Nawacita (nine priority program) prioritizes accelerating infrastructure development to connect the peripheries with growth and promoting connectivity between islands in the archipelago. Indonesian government is aware of the important of infrastructure to improve social and economic aspects.
Some important issues that need to be known in infrastructure development by Joko Widodo.
Realization of infrastructure development
Joko Widodo managed to fix various land, sea and air transportation routes. According to the publication from liputan6, the road construction that has been repaired has reached 3,432 km and the toll road is 947 km long. In addition, 39 km of bridge construction has been carried out and 134 suspension bridges have been built. Likewise for the railway line, 754.59 km spoor has been built and 413.6 km spoor has been rehabilitated. Some of the new means of transportation, namely the construction of Light Rail Transit (LTR) in Java and South Sumatra. As well as Mass Rapid Transit (MRT) in the Jakarta area.
Airport construction has also been carried out on Papua to Kalimantan. A total of 408 airports have also been revitalized and developed. On the sea route, 19 ports have been built. The development is intensified in east Indonesia. This is to facilitate mobility and trade activities to the east part of Indonesia. the government builds fiber optics named as the Palapa Ring project. In addition, strengthen food security such as dams and irrigation lines are also being repaired.
Infrastructure development to increase economic growth
Based on research ‘effect of infrastructure on economic growth in south sumatera province’, infrastructure development can boost economics via two channels, directly and indirectly. Directly, improvements in infrastructure will have an effect on productivity. For example, the construction of bridges or roads in areas that previously did not have access to these areas allows productive investment to occur in those areas. Another example, such as the construction of a telecommunications network, will have an effect on the use of new technology or machines for production activities.
Indirectly, infrastructure can have an impact on reducing production costs, working time effectiveness, and various other things. for example, there is the construction of roads and railways, so that transportation costs will decrease, private firms benefit from economies of scale and more efficient inventory management. In addition, increasing communication channels will make it easier to exchange information so that it will increase competition and trade. The further impact of this is the progress and good quality of the goods produced.
Various studies have been conducted to analyze the role of infrastructure development which is currently being intensified with economic growth. The results showed that there was a positive and significant relationship between infrastructure development (both land, sea, air, communication channels) on economic growth.
Challenges in Infrastructure Development
There are three challenges and obstacles to facility development. These include: land clearance, project planning and preparation, and financing. The problem that often occurs at the land clearance is the lack of compensation funds, causing a long negotiation process. The second challenge – project planning and preparation – is usually a problem of coordination. Development involves many stakeholders such as central and local governments, village governments and residents, investors and contractors and so on.
The third is the problem of financing. There are four sources that can be managed by the government, the state budget, the private sector, and partnerships between government and private agencies. The government has tried to get more into the scheme, but only a few projects are being implemented. These three things require careful attention and thought, so that development can continue to run well.
Infrastructure development during pandemic
The pandemic brings changes in various aspects of life due to restrictions on activities. This impact also affects infrastructure development. Implementation of development that requires a lot of manpower will make crowds and transmission rapidly. But stopping infrastructure development is also not the right solution. Many workers are absorbed and various development plans have been mature.
The Regional Infrastructure Development Agency (RIDA) of the Ministry of Public Works and Public Housing (MPWH) provides an infrastructure development strategy during the pandemic with a focus on labor-intensive programs that pay attention to health protocols. In addition, recovery and acceleration of development programs are carried out to achieve the targets that have been set.
The development is still being carried out to develop priority areas, which include the development of strategic areas, leading sectors, urban areas, underdeveloped areas, borders, rural areas and transmigration, as well as regional institutional and financial management. Moreover, the increased coordination and cooperation of various stakeholders that have been mentioned in the previous discussion needs to be improved. This is to ensure the development to keep running so as to make the development of a country.