A decade of PUPR infrastructure supporting economic growth

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Satu dekade infrastruktur PUPR topang pertumbuhan ekonomi

4 October 2024

By Ichsan Amin

Jakarta, ID – The Public Works and Housing (PUPR) Ministry stated that infrastructure development during the 10-year administration of President Joko Widodo (Jokowi) has been able to sustain national economic growth and increase competitiveness.

PUPR Minister Basuki Hadimuljono explained that infrastructure serves two main roles. First, it facilitates production and sustains economic growth with roads, toll roads, energy facilities, and dams. Second, it provides basic services, such as drinking water provision, roads and bridges, housing, sanitation, and irrigation.

“We, at the PUPR Ministry, are committed to realising quality and sustainable infrastructure development. We hope that development can continue to progress to sustain the lives of many people,” Minister Basuki said in Jakarta on Thursday (3/10/2024).

In the water resources sector, the PUPR Ministry, through the Water Resources Directorate General, has completed 53 dams out of the planned 61. The completed dams include Sepaku Semoi Dam, Ameroro Dam, Leuwikeris Dam, Way Sekampung Dam, and Kuningan Dam.

“Dam development must also be complemented by the development of irrigation networks. This ensures that the dams, which are built at high costs, can be advantageous by guaranteeing water distribution to farmers' fields,” Minister Basuki added.

From 2014 to 2024, the PUPR Ministry has constructed 1,228,440 hectares (ha) of irrigation networks and rehabilitated 4,647,547 ha of existing networks. Additionally, the PUPR Ministry has completed 1,371 retention basins, 493 sediment and lava control structures, and 2,154 kilometres (km) of flood control and shoreline protection.

In the connectivity sector, the PUPR Ministry, in collaboration with toll road business enterprises (BUJTs), has completed the development of 2,432 km of toll roads. One of the toll roads recently inaugurated by President Jokowi is the Stabat-Tanjung Toll Road and the Tebing Tinggi-Serbelawan-Sinaksak Toll Road, spanning 72 km, which are part of the Trans-Sumatra Toll Road.

“Toll roads connected to productive areas, such as industrial estates, tourism destinations, airports, and ports, can reduce logistics costs and increase the competitiveness of domestic products,” Minister Basuki added.

On the other hand, the PUPR Ministry, through the Highways Directorate General, has also completed the construction of 5,999 km of new roads, 125,904 metres of bridges, 583 suspension bridges, and 27,673 metres of flyovers and underpasses. One of the flyovers recently inaugurated by President Jokowi is the Djuanda Flyover, spanning 858 metres in Sidoarjo, East Java.

In the settlements sector, the PUPR Ministry, through the Human Settlements Directorate General, has completed drinking water provision systems (SPAMs) with a capacity of 36,380 litres per second, providing drinking water access to 93% of the total population.

The PUPR Ministry has also addressed 94,321 hectares of settlement areas, managed waste and sanitation for 13.7 million households, and provided sanitation access to 82% of the total population. Additionally, regarding Integrated Cross-border Posts (PLBNs), 15 areas have been constructed, and 5,939 units of educational, sport, and market facilities have been rehabilitated and renovated.

In the housing sector, the PUPR Ministry, through the Housing Directorate General, has constructed 10.2 million houses using the State Budget (APBN) through the One Million Houses Programme. Additionally, the PUPR Ministry has built 1.49 million houses through the Independent Housing Stimulus Assistance Programme (BSPS), 40,347 special houses, and 71,731 flats.

Maintaining inflation

Meanwhile, PUPR Ministry Spokesperson Endra S. Atmawidjaja stated that the extensive connectivity infrastructure development during President Jokowi's administration has positively impacted national inflation, helping it remain under double digits.

“Our prices are relatively stable. Even though there is slight inflation, it is not like what we see in other countries where inflation reaches double digits. Our inflation remains at 3%-4%. I even think it can be lower,” Endra stated as cited by Antara.

He explained that in the one decade of President Jokowi's administration, there has been massive development of connectivity infrastructure projects. These include national roads, toll roads, ports, railways, and airports, all of which facilitate distribution to every region in Indonesia.

His agency noted that from 2014 to 2024, the government has constructed 6,000 km of national roads, focusing on Trans-Papua, the Papua border, the Kalimantan border, the East Nusa Tenggara border, and the Java southern highway.

Next, regarding toll roads, the PUPR Ministry is targeting the construction of new toll roads spanning 2,700 km by the end of 2024.

“So far, around 2,200 km of new toll roads have become operational. I believe this is three times the length of operational toll roads in 2014,” he said.

Furthermore, he mentioned that the development of connectivity infrastructure also shortens travel times and provides more comfort for distribution. This is evident from the lack of complaints regarding queues to enter ports.

Additionally, Endra noted that the government has successfully diversified railways in Indonesia with the construction of the mass rapid transit (MRT), light rail transit (LRT), and Whoosh high-speed railway.

 

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