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Positive Impact of Papua Trans Road Development on Local Economy

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By: Roy Andarek*)

The construction of Papua Trans Road is one of the largest infrastructure projects initiated by the government. The project aims to enhance connectivity and economy in the Papua region, by connecting various remote areas, so that the project is expected to bring significant positive changes to the local economy.
The construction of Papua Trans Road did not only begin as an infrastructure project, but also as a realization of the long-standing ideals that have existed since the era of Soeharto’s rule. The government, through the Ministry of Public Works and People’s Housing (PUPR), has initiated this project to connect the isolated areas. In its development, the project gained full support from various parties, including PT Infrastructure Guarantee Indonesia (Persero) or PT PII (Persero).
With the construction of Papua Trans Road, accessibility between different regions in Papua has increased drastically. PUPR Minister Basuki Hadimuljono said the project would be very helpful in streamlining logistics in the region. Delivery of goods, especially raw material needs and raw materials, became faster and more efficient. This, of course, has an impact on lower logistics costs and more affordable prices for local communities.
The presence of adequate road infrastructure also boosts local economic growth. With better access, economic sectors such as agriculture, fishing, and tourism can grow faster. Local farmers and fishermen can deliver their crops to wider markets at lower costs. In addition, the tourism potential of Papua, rich in natural beauty, is now more easily accessible by tourists, both domestic and foreign.
The construction of Papua Trans Road also opens up opportunities for new investments. PT PII (Persero) guarantees this project with a government cooperation scheme with the Enterprise Agency (KPBU), which involves the participation of the private sector in infrastructure financing. PT PII Chief Director, M. Wahid Sutopo, revealed that the involvement of private parties is essential to meet infrastructure financing needs in Papua. With guarantees from PT PII (Persero), investors feel safer and more comfortable to invest, which in turn creates new jobs and boosts local economic growth.
The Papua Trans Road project is also a symbol of the government’s demolition of construction. The areas that were previously isolated are now receiving greater attention. The Director General of Finance and Risk Management of the Ministry of Finance, Suminto, stated that the involvement of private parties in the construction of this infrastructure is expected to be replicated in other areas that have a geographical and economic character similar to Papua.
With increased connectivity and accessibility, the social disparity between urban and rural areas in Papua can be reduced. The construction of these roads enables communities in remote areas to gain better access to public services such as education and health. Children in the countryside can now go to school more easily, and access to health facilities becomes faster and more affordable.
Increasingly sophisticated technology and the commitment of various parties are also able to mitigate the development challenges in the Area. Geographical challenges such as difficult terrain and extreme weather conditions become major obstacles in the construction process. However, with, these challenges are expected to be overcome with the use of advanced technology and comprehensive consideration. So the project can have a number of very significant positive impacts.
The government and the public have great hopes for this project. They hope that with the completion of the construction of Papua Trans Road, people’s lives will be more prosperous and the local economy will flourish. Collaboration between government, private, and public is vital to ensuring the success of this project.

The involvement of the private sector is not only limited to funding, but also to technology transfer and local capacity-building. PT PII (Perseo), through the KPBU scheme, ensures that the project runs in accordance with the established standards and has the maximum impact on the community. This good cooperation between government and the private sector is expected to be a model for other infrastructure projects in Indonesia.
One of the significant impacts of the construction of Papua Trans Road is the empowerment of local communities. Governments and stakeholders have involved local communities in various stages of the project, from planning to implementation. Thus, the community is not only a beneficiary, but also an active participant in the development process. This active involvement also increases the sense of public ownership and responsibility for the infrastructure built.
The development of Papua Trans Road is a major step in improving connectivity and economy in Papua. The project not only has a positive impact on accessibility and mobility, but also boosts local economic growth, increases investment, and reduces social inequalities. Although the challenges remain, with strong commitment from all sides, the project is expected to bring significant positive changes to the Papua community. Support from the government, the private sector, and the community is essential to ensure that the project can run successfully and provide maximum benefits to the entire layer of the Papua society.

*) Students of Papua live in Jakarta

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