Infrastructure Development as The Key Factor to Improve Competitiveness

To realize inter-regional connectivity, the government plans to build new highways along 865 km, 6 airports, 15 ports, and 639 km of railway lines.

Infrastructure Development as The Key Factor to Improve Competitiveness
Jalan tol Bali - Mandara (Foto: Anto Erawan - RumahHokie.com)

RumahHokie.com (Jakarta)Infrastructure is one of the key factors to make Indonesia’s economy more competitive. Based on Global Competitiveness Index 2016 – 2017 released by the World Economic Forum, Indonesia’s competitiveness ranked 41 out of 138 countries while infrastructure competitiveness is ranked 60th while technological readiness is ranked 91 out of 138 countries.

Whereas Indonesia competitive rank is expected to be 35th by the end of this quarter, according to Trading Economics’ global macro models and analysts expectations. In the long-term, the Indonesia Competitiveness Rank is projected to trend around 30th in 2020, according to our econometric models.

Read More: 2021, Indonesia Construction Market To Hit USD136.26 Billion

This shows that infrastructure is still needed to improve the nation’s competitiveness and respond to the challenge of uneven development that supports the distribution and logistics channels, thus affecting income in every region in the country.

Indonesian Government is aware of the condition by establishing infrastructure development as one of the 2018 priority targets aiming to improve inter-regional connectivity while achieving economic growth of 5.4%.

The impact is infrastructure expenditure in the State Revenue and Expenditure Plan (RAPBN) of 2018 increased 5.6% to Rp409 trillion compared to the APBNP of 2017 amounting to Rp387.3 trillion.

The amount includes economic infrastructure spending of Rp395.1 trillion, social infrastructure Rp8 trillion, and infrastructure support Rp4.9 trillion.

To realize inter-regional connectivity, the government plans to build new highways along 865 km, 6 airports, 15 ports, and 639 km of railway lines. In addition, the government is also continuing the construction of the Palapa Ring fiber optic backbone network in 57 districts.

President of the Republic of Indonesia Joko Widodo (Jokowi) explained in his speech when reading the RAPBN 2018 notes in the plenary session of the House of Representatives in mid August 2017: “increased spending is directed to funding priority programs such as infrastructure in maintaining inter-regional connectivity, supporting economic growth, absorbing labor, and reducing poverty and inequality.”

Indonesia Infrastructure Week 2017
In response, Tarsus Indonesia, a business-to-business (B2B) based event, exhibition, conference, and media company, together with the Indonesian Chamber of Commerce and Industry (KADIN) and the Ministry of Public Works and Housing (KEMENPUPR) will hold Indonesia Infrastructure Week (IIW) on 8 – 10 November 2017 at the Jakarta Convention Center (JCC).

This annual event will feature a variety of products, technologies, best services in the infrastructure sector as well as the exposure of various priority infrastructure projects spread across the region.

The event features three special elements of the exhibition, ranging from high-level investment forums, exposure to various infrastructure projects, and exhibition of infrastructure products and technology.

“Indonesia Infrastructure Week (IIW) is held in collaboration with the Government represented by the Ministry, SOEs and other best private companies, by means to generate business opportunities for many parties in the infrastructure sector while directly supporting the important vision of infrastructure development that sustains Indonesia economic growth,” said Didit Siswodwiatmoko, Managing Director of Tarsus Indonesia as the organizer of IIW 2017.

Anto Erawan
anto.erawan@rumahhokie.com

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