Driving on-target infrastructure development

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 - Memacu pembangunan infrastruktur yang tepat sasaran

4 Octoberr 2024

By Heru Febrianto

Jakarta, ID – Indonesian President Prabowo Subianto has requested Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) to concentrate on on-target infrastructure development to ensure the benefits are directly experienced by the people.

Coordinating Minister for Infrastructure and Regional Development AHY stated that during his first week in the role, he organised visits to the relevant ministries he will oversee to establish an efficient coordinating ministry structure.

As a new coordinating ministry, AHY emphasised the necessity of targeted studies and the collection of issues, given the extensive and varied responsibilities of each ministry under the Coordinating Ministry for Infrastructure and Regional Development.

“I believe the optimal time to gather issues is during the first week. I plan to visit the ministries personally to hear their explanations and receive input from the already established departments,” Agus said to the media in Jakarta on Wednesday (23/10/2024).

The Coordinating Ministry for Infrastructure and Regional Development will oversee five ministries, namely the Agrarian and Spatial Planning (ATR) Ministry/National Land Agency (BPN), the Public Works Ministry, the Housing and Settlement Areas Ministry, the Transmigration Ministry, and the Transportation Ministry.

AHY emphasised that President Prabowo desires more equitable and on-target infrastructure development across Indonesia. The President highlighted the importance of fairness in the government's development initiatives. According to AHY, President Prabowo hopes that all citizens will be able to enjoy the positive impacts of infrastructure development.

“The President hopes that future infrastructure development will not only be targeted but also reach all people in Indonesia, regardless of their location,” AHY stated.

In addition to focusing on equalisation, AHY mentioned that infrastructure development must also aim to reduce social and economic disparities. The constructed infrastructure will be directed towards supporting self-sufficiency in food and energy, as well as improving the quality of life.

“We will reduce disparities and prioritise strengthening infrastructure that supports self-sufficiency in food and energy, as well as improvements in the quality of life,” he added.

AHY emphasised the importance of infrastructure development in the education and healthcare sectors, as well as the creation of new economic centres that can enhance people's income and welfare.

“Educational and healthcare facilities, as well as new economic centres, must be developed to enhance the people's welfare,” he continued.
In his explanation, AHY emphasised the importance of prioritising environmental sustainability in every construction project. Poorly planned construction can lead to environmental imbalance and trigger natural disasters.

“We must ensure that unplanned construction does not cause imbalances and disasters that harm us all,” he stated.

Continue IKN and PSNs

During his visit to the Public Works Ministry on Wednesday (23/10), AHY assured that he would continue the construction of national strategic projects (PSNs) and Nusantara Capital

City (IKN). He emphasised that the government was committed to continuing sustainable infrastructure development and ensuring equitable development across Indonesia.

“Infrastructure development must be integrated. There cannot be a disconnection between different government bodies, as this would reduce effectiveness and efficiency.

Conversely, with integration, the benefits for the people will be significantly increased,” Coordinating Minister AHY stated.

He also emphasised the importance of equalisation, particularly in underdeveloped regions. This approach aims to reduce development disparity between developed and underdeveloped areas.

AHY also highlighted the importance of continuing the development of Nusantara Capital City (IKN), which has become a priority, with a main focus on completing legislative and judicial facilities.

“IKN is a major project that must be continued. Although there are timeline adjustments, development will proceed with a priority on establishing the government centre, particularly focusing on legislative and judicial facilities following the completion of executive ones,” he explained.

Regarding PSNs, Coordinating Minister AHY stated that the development of toll roads, which has already reached thousands of kilometres, will continue by connecting the remaining routes.

“We will continue with the toll road projects. We have already constructed thousands of kilometres, and we will keep working to connect the remaining sections. Additionally, feeders to production centres are crucial to ensure more efficient distribution of goods and services,” he affirmed.

Furthermore, he highlighted the importance of cash-for-work programmes, which not only provide direct benefits to the people but also employ many local workers. Coordinating

Minister AHY affirmed the significance of programmes that can be directly felt by the people, such as the construction of community-based irrigation, sanitation, and clean water infrastructure.

“We will focus on infrastructure that not only improves the quality of life but also addresses the issue of stunting. One of the main solutions is to enhance clean water and sanitation infrastructure,” he revealed.

In the first 100 days, Coordinating Minister AHY will ensure that infrastructure projects which are 80%-90% complete will be inaugurated for the benefit of the people.

“In the next 100 days, several infrastructure projects, including reservoirs, roads, and irrigation systems, will be inaugurated. The most important aspect is that the benefits can be directly felt by the people, rather than it being merely a formal inauguration,” Coordinating Minister AHY explained.

At the end of his statement, Coordinating Minister AHY emphasised that all planned projects, both long-term and short-term, will align with the vision of President Prabowo Subianto, which focuses on continuity from the administration of President Joko Widodo.
 

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