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High Speed Railway for Indonesia’s Regional Development

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President Jokowi signed inscription fast train projects Jakarta - Bandung
President Jokowi signed inscription fast train projects Jakarta – Bandung

By: Rega Feriansyah *)

Jakarta, CIDISS – The transport sector is the most strategic sector in supporting the development of a region, since becoming a key sector connector for an area to be grown massively. The transport sector can be analogous to the blood vessels that serve very vital to the survival of the human body, as a bridge for many systems that synergis work. In the context of the region, the transport is the key to move the wheels of the economy to social transformation.

Development of a fast train transportation modes Jakarta – Bandung launched by the government of President Joko Widodo certainly be able to accelerate the growth of the region and of course also the economic growth in Indonesia, especially in Java. As it is known, that this project is a consortium project between Indonesian state enterprises with state-owned China which later merged to form Quick PT. Kereta Indonesia China (KCIC). Thus the project is purely business and 100% funding outside the budget. Also, the government does not provide any guarantee later if things happen that do not want on the project worth 80 trillion. The government in this case the Ministry of Transportation only facilitate regulation for PT.KCIC to be able to construct the fast train. The government only helps permit and ensure the project runs smoothly. Furthermore, the government will concentrate on the construction of the train line outside of Java such as the Trans-Sumatra and Trans-Kalimantan through budgeting the budget as planned and programmed by the government of Joko Widodo in her Nawa Cita.

The World Bank (World Bank) has conducted studies in several countries that have fast trains such as China, Japan, Germany, and the UK about the economic impact generated associated with the presence of the fast train. The results of the study on the state China proved that a fast train linking Beijing-Kowloon has been moving the economy amounted to 124.4 billion Yuan, or 4.39% of economic growth in the transportation and industrial sectors accounted for an average of 0.1% to the growth of the Chinese national. Thus it is clear that the presence of a modern public transportation capital and can quickly stimulate the economic growth of a country. Connectivity and accessibility between regions are getting better, the flow of goods and services will flow without obstacles that eventually stimulate other sectors and increasing impact on economic growth of a region. [RF]

*) CIDISS Contributor

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