Indonesia’s Infrastructure Development – As the clock ticks down to October 20, 2024, Indonesia stands on the cusp of a political transition. The presidency of Joko Widodo (Jokowi) will conclude, giving way to Prabowo Subianto, his chosen successor. While Jokowi’s administration has not been without its critics, his tenure undeniably brought about substantial advancements for the nation. Over the last decade, Indonesia witnessed a dramatic expansion in infrastructure, with the completion of 2,432 kilometers of toll roads, bridges extending 125,904 meters, and the implementation of National Strategic Projects (PSN) that attracted an impressive IDR 1,855 trillion in investments. Let’s explore the infrastructure achievements during Jokowi’s presidency, which is characterized by significant milestones and transformative developments.

Jokowi’s administration, which began in 2014, prioritized infrastructure as a key component for enhancing the nation’s competitiveness. Understanding Indonesia’s unique geographical challenges, consisting of thousands of islands, he recognized that infrastructure development is essential for bridging regional gaps. The government allocated substantial budgets for these initiatives, resulting in the successful completion of numerous strategic projects that were previously overlooked.

In recent years, a series of infrastructure projects have been successfully completed, significantly enhancing connectivity across the archipelago. The government has made strides in various areas, focusing on four main development themes: improving connectivity and accessibility, achieving food sovereignty, ensuring energy resilience, and promoting industrial downstreaming.

Indonesia’s Infrastructure Development Under Jokowi

The enhancement of connectivity has emerged as a fundamental aspect of equitable development. To promote better access, the Ministry of Public Works and Housing (PUPR) and the Coordinating Ministry for Economic Affairs reported impressive accomplishments. Noteworthy developments include 2,432 kilometers of toll roads, 5,999 kilometers of new national roads, and bridges spanning 125,904 meters. The government also constructed 27,673 meters of flyovers and underpasses, alongside 11 seaports, 20 airports, and seven railway projects.

In the realm of food sovereignty, the government has made significant progress by completing the construction of 53 dams and establishing a new irrigation network that covers 1.2 million hectares. Rehabilitation efforts for 4.6 million hectares of irrigation and the development of 1,371 water reservoirs have also been notable achievements.

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For industrial downstreaming, the government has established 22 Special Economic Zones throughout Indonesia, from Aceh to Sorong, Papua. Additionally, more than 100 industrial zones have been developed, alongside three food estates in Central Kalimantan, North Sumatra, and Merauke, Papua.

From 2016 to 2024, the implementation of PSN has seen the government successfully complete 210 projects nationwide, garnering a total investment of IDR 1,855 trillion. These projects reflect a commitment to “Indonesia-centric” development, with 128 PSN located outside Java, 74 within Java, and eight that have a nationwide scope.

Economic Impact of Indonesia’s Infrastructure Development

The substantial infrastructure investments have had a profound impact on Indonesia’s economy. Susiwijono Moegiarso, Deputy for Regional Development and Spatial Planning at the Coordinating Ministry for Economic Affairs, emphasized that the effects of infrastructure development can be observed through three key indicators: an increase in employment, a consistent decline in the unemployment rate, and a reduction in poverty and extreme poverty over the past decade.

“Massive and large-scale infrastructure development has significantly influenced the quality of Indonesia’s economic growth,” Susiwijono stated in a written statement dated October 7, 2024.

He highlighted the remarkable increase in employment figures, noting a significant recovery since the decline during the COVID-19 pandemic in 2021. In 2024 alone, the workforce expanded by 3.6 million, an increase from 3 million in 2023.

Moreover, the unemployment rate has seen a positive shift, dropping to 4.8% in 2024, a figure that falls below pre-pandemic levels. “We achieved a rate of 4.82% in 2024, which is lower than the levels seen before the COVID-19 pandemic,” he affirmed.

Additionally, both poverty and extreme poverty levels have consistently decreased, with extreme poverty nearing the government’s ambitious target of 0%. The infrastructure developments undertaken between 2016 and 2023 alone have generated approximately IDR 3,344 trillion in economic value across the nation.

Future of Infrastructure Development

Despite these achievements, the journey of infrastructure development is fraught with challenges. Issues such as land acquisition, budget delays, and corruption often complicate projects. Nevertheless, the government remains steadfast in its commitment to completing planned initiatives.

President Jokowi has continuously underscored that infrastructure development represents an investment in the future. Reflecting on his decade-long presidency, he has reiterated the critical role of infrastructure in enhancing Indonesia’s competitiveness globally, emphasizing that infrastructure must deliver tangible benefits to communities and promote connectivity that stimulates economic growth.

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To ensure this commitment continues, the government plans to allocate IDR 400.3 trillion for infrastructure projects in the 2025 state budget, managed by the incoming President Prabowo Subianto and Vice President Gibran Rakabuming Raka. This budget will focus on enhancing basic services and food sovereignty, as well as the construction of 3,884 housing units and 596 special homes, along with educational facilities and digital infrastructure. Susiwijono noted the government’s exploration of creative financing methods for these projects, particularly through Public-Private Partnerships (PPP).

“Given the substantial financing and investment needs for infrastructure development, we aim to promote non-state budget financing,” he explained.

The last decade has seen remarkable progress in Indonesia’s infrastructure sector, positively impacting communities through improved access and quality of life. Nonetheless, ongoing challenges must be tackled with careful consideration. While positive initiatives warrant support, constructive oversight and criticism are essential. Through collaborative efforts among the government, society, and the private sector, sustainable and environmentally-friendly infrastructure development can be achieved.

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