Enhancing the development of infrastructure
• 02 Dec 2016
Pekerja menyelesaikan proyek Mass Rapid Transit (MRT) di kawasan TB. Simatupang, Jakarta Selatan. PT MRT Jakarta menargetkan pembangunan infrastruktur selesai pada 2018 dan MRT bisa beroperasi tahun 2019. ANTARA FOTO/ Fakhri Hermansyah
Infrastructure is the key role as one of the motors of economic growth and development
Bareksa.com - Infrastructure, which is very important for the development of a country, comprises roads, electric network, telecommunication, water facility, energy network, and health care facility. Its role in economic sector is a stimulus for the developing associated sector as multiplier and at the end creating jobs.
Infrastructure can boost the economic growth.
Besides resulting the good effects to economic growth and quality of life, infrastructure also bring positive impact on investment. It can be summed up that infrastructure could reduce the poverty and the jobless in a country.
The positive impact of infrastructure development
Indonesian President, Joko Widodo (Jokowi) said Indonesian government will keep developing the infrastructure by 2019. This is also part of preparation heading to industrialization age. Some infrastructure projects which are running on are the development of electric power plant 35,000 MW, 163 new harbors, 621 mile new toll road, 2024 mile railroads, 1 million acre irrigation system, and 49 dam to support the irrigation system.
In this year, Indonesian government has prepared around Rp313 trillion budget for infrastructure in the entire Indonesia. Most of that budget is going to be allocated to build around 1000 kilometer toll road in five years.
Presiden Jokowi said, the infrastructure investment’s result can be felt in long terms and the benefit will be sustainable. Therefore, investor in this sector must be fully supported.
The positive impact of infrastructure to economic growth could be seen in the development of toll road, for example the development of toll road in Pasuruan, a county in East Java province, Indonesia. Since 2015, the total investment in Pasuruan is around Rp15 trillion. This amount is Rp5 trillion bigger than in 2014.
The toll road is an interesting incentive for investors, who will count the reduction cost of transportation when connectivity is available.
The significant increasing investment in Pasuruan is also supported by supply gas energy from PGN pipe and Pertagas. The roles of those companies are crucial in supplying the demand of energy for industrial sector.
The same improvement has been happening in Cirebon, West Java province, Indonesia. The toll road, Cikopo-Palimanan (Cipali) has brought a huge impact to the local economic growth, for example the development of some hotels around the area.
World Bank awarded positive grade for the massive infrastructure development in Jokowi’s administration. World Bank said the infrastructure development in Indonesia increased around 40 percent and this would boost jobs.