Bappenas Wants Infrastructure Industry Fulfillment to Accelerate Growth

INDUSTRY.co.id - Jakarta - National Development Planning Minister / Head of Bappenas Bambang Brodjonegoro wants the fulfillment of adequate infrastructure needs to strengthen competitiveness and accelerate the performance of economic growth.

"Infrastructure can accelerate growth, not inhibit," said Bambang in the event "PINA Day 2018" in Jakarta, Thursday (18/1/2018)

Bambang explained that Indonesia's useful infrastructure needs to provide a strong foundation for the advancement of economic growth is still lagging behind as infrastructure stocks to GDP are still in the range of 38 percent.

In fact, Indonesia's infrastructure stocks to GDP prior to the 1998 financial crisis were in the 49 percent range, so the fulfillment of infrastructure facilities is currently declining compared to the New Order era.

"Indeed, GDP compared to before the crisis has grown, but the growth is not followed by the growth of infrastructure, if the infrastructure is not improved, the growth is not 'sustainable' and fast," Bambang said.

He added that these low infrastructure stocks are below the global average of 70 percent or developed countries, such as Japan, which is already above 100 percent, China 80 percent and the United States 76 percent.

Therefore, the provision of adequate infrastructure must be done in the medium to long term so that Indonesia can truly become a developed country by 2045 and infrastructure stocks to GDP rise near the minimum before the 1998 crisis.

"At least we approached the level before 1998 by 49 percent, the 40 to 45 percent range is an improvement, if we want to be a developed country, we only dream if not build infrastructure," said the former Finance Minister.

Bambang as reported by Antara said that the Government has been trying to encourage infrastructure development. Not only take advantage of APBN funds, but also invites the role of private and state enterprises through various financing schemes, such as KPBU and PINA.

"We have to pursue, 'all out' to encourage infrastructure development by involving private and state-owned enterprises, the government must sacrifice because the fulfillment of infrastructure needs can not wait," said Bambang.

Total value of investment required for infrastructure development 2015-2019 reached Rp4,769 trillion, of which fulfilled through APBN Rp1,969.6 trillion or 41.3 percent, private Rp1.740.7 trillion or 36.5 percent and state-owned enterprises Rp1.058.7 trillion or 22.2 percent.