By: Dewi Anjani*
Economic development in the era of President Joko Widodo (Jokowi) over the last decade has brought significant changes. One of the big changes that is felt is the shift in development focus which is no longer centered on the island of Java, but spreads to various regions in Indonesia. This is in line with President Jokowi’s ideals of realizing Indonesia-centricity, where development is evenly distributed throughout the region, including areas that were previously left behind.
Based on data from the Central Statistics Agency (BPS), the contribution of regions outside Java to Gross Domestic Product (GDP) continues to increase. In the first quarter of 2024, although Java Island still dominates with a contribution of 57.70 percent, regions such as Sulawesi, Bali, Nusa Tenggara, Maluku and Papua show a significant increase in their economic contribution. Development in these areas is greatly influenced by the government’s policy of equitable infrastructure development.
One of the greatest achievements of the Jokowi government is the massive development of transportation infrastructure. Transportation infrastructure is the backbone of efforts to increase connectivity between regions and reduce logistics costs. With an improved transportation network, it is hoped that economic growth in various regions can accelerate and no longer depend on certain areas alone.
In the Jokowi era, large projects such as the construction of toll roads, airports, ports and railways were not only concentrated in Java, but were also built in eastern Indonesia, such as Papua, Sulawesi and Maluku. One of the monumental transportation projects is the construction of the Makassar-Parepare railway in South Sulawesi, as well as the Kuala Tanjung International Hub Port in North Sumatra. This infrastructure development is a real symbol of the government’s commitment to strengthening national connectivity.
Minister of Transportation Budi Karya Sumadi stated that the development of transportation infrastructure in various regions, both in the western and eastern parts of Indonesia, aims to ensure better connectivity between regions, even to remote mountainous areas. According to him, even though faced with various challenges such as climate change, environmental damage, pollution, resource scarcity, and the COVID-19 pandemic, the government remains committed to realizing equitable infrastructure development.
Executive Director of the Center of Reform on Economics (CORE) Mohammad Faisal admitted that the infrastructure achievements made in the last decade were extraordinary achievements. Before the Jokowi era, infrastructure in Indonesia, especially outside Java, was still very limited. Now, infrastructure development has been evenly distributed and is able to reduce the gap which has been the main problem. Faisal also added that development outside Java has a significant impact in increasing investment attractiveness, especially in areas rich in natural resources.
Not only focusing on infrastructure development, the government is also trying to improve people’s welfare through job creation in developing sectors. The construction of smelters and downstreaming in Sulawesi, Maluku and Papua has encouraged increased investment in the mining sector, especially in areas that produce commodities such as nickel. Investment entering these regions is very large, in fact in 2023, Central Sulawesi and North Maluku will record the highest economic growth in Indonesia, at 11.91 percent and 20.49 percent respectively.
On several occasions, President Jokowi emphasized that infrastructure development is not an end goal, but a means to achieve more equitable economic progress. Good infrastructure is expected to be able to open access to remote areas, facilitate the distribution of goods and services, and encourage regional economic growth. In this way, all levels of society, both in big cities and in remote areas of the country, can feel the benefits of development.
With these various infrastructure achievements, Indonesia has made gold achievements in the transportation sector. Projects such as the Jakarta MRT, Palembang LRT, and the construction of airports in remote areas, are all part of the government’s commitment to advancing the national transportation and connectivity sector. The results are not only felt by the people who now enjoy better transportation access, but also increase Indonesia’s competitiveness on the global stage.
Massive infrastructure development also increases investor confidence in the Indonesian economy. With improved infrastructure, logistics costs can be reduced, thereby making Indonesia more competitive in the global market. In the IMD World Competitiveness Ranking, Indonesia’s infrastructure ranking jumped from 54th in 2014 to 27th in 2023. This is proof that massive investment in infrastructure has brought significant changes to Indonesia’s competitiveness.
In the future, synergy between infrastructure development, investment and increasing human resource capacity will be the key to Indonesia’s success in achieving inclusive growth. The government, business world and society must continue to work together to ensure that the results of this development can be enjoyed by all Indonesian people. The development that President Jokowi has started must continue, so that Indonesia can move further towards more equitable and sustainable progress.
*The author is a transportation management student