13December2017

Home Editorial Accelerating implementation of infrastructure projects

Accelerating implementation of infrastructure projects

President Joko Widodo’s 9 main agenda program or Nawacita  has encouraged the acceleration of infrastructure development, not only in Java, but also some other regions across Indonesia. Take for example, West Kalimantan has inaugurated several infrastructure projects implemented by the central, provincial and district governments. They are Tayan Bridge, Supadio International Airport, some inter-state border gates and power plants.

The government is currently still focusing on accelerating infrastructure development in various regions in a bid to improve Indonesia's competitiveness with other countries. President Joko Widodo asked the ministers to accelerate the implementation of infrastructure projects, especially those whose implementation is in cooperation with other parties. This is meant that foreign investment will immediately come to Indonesia, because the funding of the project cannot be done from a single source namely through the state budget (APBN).

The related ministries such as Coordinating Ministry for Economy, Home Affairs Ministry, Ministry of Transportation, and Ministry of Energy, and Mineral Resource are requested to accelerate all infrastructure projects and to simplify the process. Among the projects, they are the port of Patimban, and the rapid train Jakarta-Surabaya. In addition, there are some other projects like the construction of refineries, electricity projects, highways, and LRT (Light Rail Transit). For LRT development, the government is now changing its financing scheme by involving the private sectors and banks. 70% is funded by banks, while PT Kereta Api Indonesia (PT KAI) endures the shortfall drawn from the operational cash flow of the LRT.

As for the construction of refineries, the Ministry of Energy and Mineral Resources (ESDM) tries to improve the capacity of oil and gas refineries through the revitalization strategy and refinery development in several locations. This means that the production target of more than 2 million barrels of oil per day in 2023 can be achieved. Director of Processing and Petrochemical Processing at PT Pertamina, Rahmad Hardadi said that the limitation of refinery infrastructure is a challenge for Pertamina to support national energy security.

All these developments must be grateful and expected to open new business opportunities, and spur the economic growth of the community. The direct impact of infrastructure development is that there is an open opportunities for people to access the existing resources, both natural resources and human resources. More importantly, with adequate infrastructure, high economic costs can be curbed. (Rita/RHM)

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