By: Agung S Budi, S.I.P, M.Sos) *
The Indonesian government is very aware of the meaning of infrastructure as a national capital force in attracting investment and business climate, so that it attracts the attention of investors there is no other word for infrastructure strengthening from roads, ports, airports, bridges and balanced with the basic needs of Indonesian people such as food security and housing ownership. Realizing this is not easy, because of the complexity of the problems as an island nation.
There is no word of surrender for the Jokowi government continues to maximize its energy to accelerate the development of infrastructure which before his administration has not been a significant focus in geopolitical and economic terms. The seriousness is reflected in the increase in budget strength in 2019, infrastructure spending will reach Rp 420 trillion. This figure increased by 157% from 2014 which was only Rp 163 trillion.
The basic question is what is the target of these targets from the basic needs of farmers and food security, namely building dams, dams and irrigation, substantial psychological needs, ownership of scattered and continually built flats. Even the needs are macro, namely sea and land transportation modes so that all slices of economic actors can feel the connectivity of economic effects and overall welfare.
The government in realizing this big dream from the aspect of planning has been very mature and carefully carried out step by step the progress of infrastructure development, reflected by a clear Standard Operating Procedure (SOP) and synergizing with the local government and stakeholders in asepk absorption and implementation in the field .
The ambitious spirit built and put forward by the government in synergy with all regional heads and stakeholders is to become a developed country with the initial capital strength to build a strong infrastructure that is proven by the synergy by holding 225 macro-scale projects in all regions of Indonesia.
Realizing that Indonesia as an archipelagic country agreed that infrastructure development was important. The mission is quite positive if it is to reduce logistics costs and strengthen connectivity between regions.
In the political economy perspective, a philosophical government building infrastructure must be built in the interests of the people. Therefore, for the government the importance of the involvement of all elements of society to be involved in the vortex of energy infrastructure development.
Realizing this big dream is quite a lot of obstacles faced by the government related to finding the necessary funds. Based on the 2015-2019 National Medium-Term Development Plan (RPJMN), a total of Rp 4,796 trillion is needed to meet the infrastructure development target (set by the government) by 2019. However, again the spirit of building seeds that have been planted by the central government to local governments, seriousness Even though the region can only contribute 41 percent to financing, while state-owned enterprises (SOEs) can only contribute up to 22 percent. This means that 37 percent of the funds needed (around Rp. 1,752 trillion), although covered by the private sector.
Collaboration with the government and the private sector in promoting infrastructure development targets as a solution to overcome the potential for national economic stagnation so that with a number of projects accompanied by a policy package there are a number of benefits of infrastructure development through private financing mechanisms. For example, such as the acceleration of infrastructure development such as airports, seaport, and sea highway supporters which are expected to increase medium-long-term economic growth.
Finally, Jokowi’s speech often touched on infrastructure development, emphasizing the domino effect of strengthening infrastructure development involving private forces and stakeholders in an effort to bring about justice for all the people of Indonesia. Indonesia, an archipelagic country, to uniform justice that is limited by time and time difference certainly requires a special strategy, recognizing these weaknesses, becoming an agreement and a shared responsibility that infrastructure development is important, especially in the aspect of reducing logistics costs and strengthening connectivity between regions which in the current era has can be felt by the people from Sabang to Maureke.
) * The author is a Researcher in the Study of Political Economy in Regional Development
