Encouraging the Completion of National Strategic Projects in Indonesia
Friday, 15/11/2019
As reported by mediaindonesia.com, Chairman of the Indonesian Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), Wahyu Utomo estimates that only 103 projects out of a total of 223 projects are listed in Indonesia’s medium-term development plan (RPJMN) which will be completed by the end of 2019. This means There are still half the infrastructure projects in Indonesia that need to be closely monitored so that they can be completed in 2024.
University of Indonesia senior economist Ari Kuncoro emphasized that the government must continue to develop infrastructure in an effort to anticipate a recession. By building infrastructure, especially in areas outside Java, the government can foster new economic centers and ultimately promote growth in these areas. Ari predicts that the United States economic recession may occur in 2020, so the government must encourage, complete unresolved development so that Indonesia will not be significantly affected.
Ari assessed that the government needs to prioritize infrastructure development that is labor intensive because it will be able to drive many industries and involve large numbers of people. With a sufficiently large funding round to the public, household consumption will increase and remain able to sustain economic growth. So far, he continued, infrastructure development has increased access and connectivity between regions. This has proven to be successful in reviving economic activity. Many factories are starting to expand into regions. Better access and connectivity also enables small and medium enterprises to develop their businesses.
From a different point of view, the Director of CSID Mohamad Ali Berawi said that there is a need for a private role in the completion of national strategic projects. It must be admitted that the problem in the completion of national strategic projects is the limited government budget. Therefore, the government needs many investors who can support the development of these projects.
In order to attract investors, according to him, the government must make priorities by considering the feasibility of these projects. The completion of several strategic projects, he continued, needs to pay attention to added value as an important aspect to attract many investors. Furthermore, Ali explained that value-added infrastructure planning and development is absolutely necessary. This is to produce an infrastructure system that is integrated, efficient, safe and technology transfer. Value added infrastructure projects, he continued, must be able to generate optimum revenue and benefits (non farebox revenues) expected by investors. Therefore, the project must be carried out together (bundle) with the development of areas, industry, manufacturing, agriculture, fisheries, mining, tourism, and other production centers in order to increase economic viability.
source: https://m.mediaindonesia.com/read/detail/270997-memacu-penyelesaian-proyek-strategis-nasional