By: M. Irfandi
Infrastructure development is considered to have a major impact on increasing economic growth. Besides overcoming the imbalance between the center and the regions, infrastructure development can reduce production costs to be cheaper.
Head of Macroeconomic Studies, LPEM University of Indonesia Febrio N Kacaribu said that the infrastructure that President Jokowi had built was quite drastic and the impact on the economy was quite large. Macro factually, if for example the president does not provide Rp. 300 trillion to Rp. 400 trillion for infrastructure and others, economic growth will definitely be lower than now.
He added, the impact of infrastructure development cannot be felt in a year or two, but in the next 4-5 years.
In the next four five years, it will certainly be felt in the form of lower production cost efficiency. Especially for people who live in big cities, the problem often faced is congestion and high economic costs because they have to deliver goods at high prices. The rest, the benefits of infrastructure will certainly be felt by the industrial sector.
He explained, for example, that the syrup producer in the field when he bought sugar from Java the transportation cost was more expensive than buying it in China. So infrastructure problems are real.
Previously, the government was optimistic that economic growth could reach 5.2 percent until the end of the year. Although in the third quarter of 2018, the economy only grew 5.17 percent year on year (yoy).
Coordinating Minister for Economic Affairs Darmin Nasution said that although it only grew 5.17 percent in the third quarter, the Indonesian economy was able to survive amid global turmoil. Various pressures can actually be faced so that the economy continues to grow.
Not long ago Darmin explained, in a situation of global pressure, trade wars, normalization of US policies, crude oil prices have risen, we can still maintain growth. That in my opinion is something that should be underlined.
According to him, various economic indicators showed good conditions. With an economy that continues to grow, and inflation is maintained, the Indonesian economy should be in a positive position.
In the infrastructure sector, the government has built infrastructure in various ways, ranging from roads to providing electricity to communities in remote areas, in addition to encouraging the economy of the community, also raising Indonesia’s competitiveness in the international community.