Infrastructure Development in Indonesia in 2016

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President of Indonesia, Joko “Jokowi” Widodo can be surely said as Father of Development from his policy package of programs and regulations made out in his first year period of his leadership.

The first step he took was eliminating fuel subsidies which saves around 300 trillion rupiah per year. That government budget will be used for infrastructure budget. Beside that, he also reformed the Ministries and Institutions so that it can run more efficiently and effectively and positioned by the right and proper people.

As the basic step was done, Jokowi continued by signing Presidential Instruction No. 1 Year 2016 on the Acceleration of the Implementation of the National Strategic Projects, which orders all relevant ministries and institutions to support the acceleration of the country’s national strategic project. Instead 225 national strategic projects, government also made 30 priority infrastructure projects that have to be completed in 2019.

Jokowi formulated infrastructure development which is very massive compare to previous government is to anticipated the global economic showdown and to decrease logistic cost all around Indonesia.

Furthermore, as formulated by Ministry of National Development Planning, it is needed to create investment friendly conditions, because to grow 7% per year in 2015-2019 period, Indonesia has to engage with private sector including foreign investors. In total government needs 1.751 trillion from private sector. To solve that matter, government just formulated economy policy package number 10 in February 2016 which focus on changing Negative Investment List for Foreign Investors so that the bureaucracy is getting simpler and certainty of legal protection.

As an observer from civil engineering basic knowledge and know about the urgency of infrastructure development and urgency of private engagement in infrastructure development, I can say that Jokowi government is in the right track. I think that unconsciously Indonesia citizen start to get enthusiastic with this infrastructure euphoria.

This infrastructure development will surely create more jobs, create equitable regional development, and create better Indonesia!

 

 

 

 

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