Infrastructure Development Aims to Create Higher Economic Growth, President Jokowi Says
Date 12 Desember 2017
President Joko Jokowi Widodo revealed the reasons why the Government focuses on accelerated infrastructure development. “Yes, this aims to create higher economic growth, both in the medium and long terms,” President Jokowi said when delivering his keynote speech at the Second Meeting of 100 Indonesian Economist held at the Puri Agung Convention Hall, Grand Sahid Jaya Hotel, Central Jakarta, Tuesday (12/12) morning.
Regarding the urgency of development, the President explained that, first, the condition of infrastructure is still far from ideal conditions, and even tend to deteriorate.
The President mentioned a study from the World Bank, and Bloomberg McKinsey in 2013, if compared to other countries in the world on average 70 percent of GDP, Indonesia’s infrastructure stocks are low, only 38 percent of GDP. Moreover, if compared to the pre-Asian economic crisis in 1997-98, Indonesia’s total infrastructure stocks also declined from 49 percent of GDP in1995 to 38 percent of GDP in 2012. “This is a fact that we must deliver,” the President said.
The decline in infrastructure stocks, according to President Jokowi, is due to infrastructure development which has continued to decline in the last two decades. Consequently, the Government focuses on infrastructure developments, in the form of road construction, toll road construction, port development, and airport development in the regions that require it.
Meanwhile, second, related to the strengthening of people’s purchasing power, President Jokowi asserted that it is still necessary to maintain the high investment rate, economic stability, especially low inflation and stable exchange rate, and availability of supplies across Indonesia.
As for the development of the leading sectors of development, according to the President, we must concentrate on the non-oil and gas manufacturing industry sector that focuses on the supply chain approach. “The development of non-oil and gas manufacturing industry is prioritized in resource-based sectors, absorbing large employment such as basic chemical industry, metal industry,” the President explained.
The President considered it essential to transform the economy, shifting the consumption-based economy to investment-based economy. Hence, it becomes more productive and gives bigger multiplier effects in our economy.
The economy based on raw natural resources without processing into a process-based, manufacturing-based economy, is considered by President Jokowi to be the key factor. Therefore, the President reminded all lest we continue to export our raw natural resources without processing. “We should stop exporting and start entering a process-based manufacturing economy,” the President said.
The President also said that Indonesia’s economic policy should continue to be directed to more inclusive and quality economic development that ultimately aims to reduce poverty and inequality, as well as increase employment as much as possible. (FID/RAH/ES) (MUR/YM/Naster).