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Availability of Infrastructure Accelerate Productivity and Investment Opportunities

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By: Dhimas Surbekti )*

The availability of infrastructure is believed to accelerate productivity and increase investment opportunities. With adequate infrastructure, the flow of goods and services is also getting faster, so as to minimize economic disparities.

Infrastructure is an important sector in increasing a country’s economic growth, one of which is by providing connectivity that facilitates the community and mobilizes people, goods and services from one place to another.

The availability of adequate infrastructure can support basic services so as to encourage equitable distribution of national development as well as increase productivity, competitiveness and investment opportunities.

On the occasion of the inauguration of Professor of the University of Indonesia (UI), Mohammed Ali Berawi as Professor of Civil Engineering explained four discussions of infrastructure development.

He explained the importance of value-added infrastructure development planning to improve project feasibility. Ali conducted several studies and research on infrastructure projects.

Research in the form of developing a conceptual design of an integrated infrastructure called the Public Railways and Stormwater Infrastructure (PRASTI) Tunnel, the construction of a Sunda Strait bridge, and the development of a smart city for the State Capital (IKN). PRASTI Tunnel is a concept for constructing an underground tunnel for the train line which is planned to be integrated with the flood control channel.

So that it is expected to be able to provide high efficiency and effectiveness for the development of infrastructure megaprojects. PRASTI Tunel functions as a commercial infrastructure in order to relieve congestion as well as a social infrastructure that can control floods in Jakarta. Namely by integrating three main functions in one tunnel consisting of public transportation facilities, airport trains and flood control (stormwater).

Ali said, “Our various researches on infrastructure projects have shown that by generating added value in infrastructure development, additional income from concessions from other types of integrated development sectors will be able to increase the feasibility of the project, so that the development benefits obtained can be more optimal.

Therefore, the efficiency and effectiveness of financing as well as the creation of value added projects need to be the basis for planning infrastructure development.

He also mentioned that smart city development for IKN aims to produce cities that are resilient and sustainable by producing better city services, including improving transportation, water resources, waste disposal, to health services. Ali said that the smart city concept contributes to the formation of a high quality, healthy and regenerative built environment that is modeled on the basis of a circular economy and with an overall positive impact on the environment.

Second, the feasibility of infrastructure development accompanied by the effectiveness and efficiency of infrastructure financing patterns can be improved through a cooperation scheme between the government and business entities. Ali said that with this cooperation the government will get relief in the provision of public infrastructure.

Third, the consequences of the COVID-19 pandemic and the impact on economic growth on infrastructure development. The adjustment of work patterns and interactions in the new normal situation that causes a slowdown in the implementation of ongoing infrastructure project development activities must be anticipated by the relevant parties.

This aims to maintain financial resilience and cash flow so that cost performance, time and quality of construction work can be controlled properly. Ali said as an effort to reduce disparities and simultaneously restore the economy due to the pandemic, infrastructure development needs to be continued by considering optimizing benefits.

Fourth, the role of digital technology, especially in the industrial era 4.0, has emerged with technological advances that can create added value. Then it leads to the adaptation of community life patterns (society 5.0) and the importance of maintaining the sustainability of natural resource ecosystems (nature 5.0) in order to increase productivity and quality of life.

Of course this can be started with the use of technology and environmentally friendly materials in order to provide solutions for the sustainability of the earth.

Infrastructure does not only support community activities, but good infrastructure development can also attract investors to invest and build a sustainable and sustainable economic ecosystem.

)* The author is a contributor to Pertiwi institute

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