Bisnis

"The Important Role of Government in Infrastructure Development in Indonesia"

11 Juni 2018   12:12 Diperbarui: 11 Juni 2018   12:26 357 0 0

The development of infrastructure aims to improve the welfare of the community. In Indonesia, it has been a long time and not a little cost to be incurred. The development of infrastructure is not running smoothly, there are constraints such as poor planning, uneven development in all parts of Indonesia, and the quality is low (Hapsari, 2011). Economic growth is one indicator to analyze the results that have been done and determine the way to be taken in the future. 

According to the World Economic Forum (WEF) entitled Global Competitiveness Report 2017-2018, Indonesia currently ranks 36th out of 137 countries in terms of infrastructure productivity (Schwab, 2017). Of course this is an interesting discussion because each year, Indonesia experienced a rise in rank. So, in here, I want to explain how the government successfully build infrastructure in Indonesia.

The government as a development controller plays an important role in improving the infrastructure in Indonesia. Communities demanded the government to make infrastructure development evenly throughout the region. Post-president Soeharto's government in carrying out infrastructure development must depend on court decisions with a long process and the desired results are not always the same (Anonim, 2017). 

In terms of decentralization of power, local governments can reject the central government's infrastructure plan because there is no significant advantage for the local area. So, the central government and local governments must work together by bringing together their thoughts and goals as a controller in order that infrastructure development can be evenly distributed throughout the region.

The government's solution to overcome the constraints of infrastructure development in Indonesia is to focus on the public-private partnership program (Anonim, 2016). A public-private partnership is a contractual arrangement between a public agency and a private sector entity. Through this agreement, the skills and assets of each sector are shared in delivering a service or facility for the use of the general public. 

In this case, private sectors can participate in infrastructure development efforts in Indonesia. BUMN parties will also assist in terms of financing but still must comply with applicable policies. This also applies in various sectors of core infrastructure, such as electricity, telecommunication, irrigation, transportation, bridges, drinking water, waste management, etc. Therefore, public-private partnership plays an important role in Indonesia to make it faster and more efficient.

So, the government should be more responsive in building infrastructure in Indonesia in a sense that local governments and all elements of society can cooperate well for a more advanced Indonesia.

 In addition, budget issues for infrastructure development can also be discussed to third parties in order that building infrastructure in Indonesia can run quickly without any significant obstacles.

 

 

References

Anonim. 2017. "Infrastruktur di Indonesia." Accessed 5 April 2018.

Anonim. 2016. "Solusi Masalah Pembangunan dan Pemerataan Infrastruktur di Indonesia." Accessed 11 April 2018. 

Hapsari, Tunjung. 2011. “Pengaruh Infrastruktur Terhadap Pertumbuhan Ekonomi di Indonesia.” Jakarta: UIN Syarif Hidayatullah.

Schwab, Klaus. 2017. "The Global Competitiveness Report 2017-2018." Geneva: World Economic Forum.