Grant Thornton Indonesia's Update

Pain in Gaining Better Living Through Infrastructure

“Oh my God, this traffic makes me crazy.”

“Damn! The traffic is getting worse.”

“Hhhh, lost another family time!”

Those are kind of complaints that sounded every day. The narrowing road and rerouted are the effect that can be seen nowadays. The government puts the power up to develop the infrastructure all over Indonesia, not only Jakarta.

Underpass and fly over are built to break up heaping vehicles in one location. More road to be able to accommodate more vehicles. Makes better sidewalks to be more convenient for pedestrians. Makes larger culverts in order to reduce flooding in a rainy season. This is the face of most big cities in Indonesia nowadays, especially Jakarta. What about other areas?

Not only Jakarta, Indonesia is setting up everything. Remote areas are now beginning to be connected by the infrastructures. Named it road development, sea bridge, port, and airport that will make all regions to be reached.

No Pain No Gain

A Few years ago, when Jakarta can buy gasoline with only IDR6.500/litre, Indonesians in Papua still have to spend IDR20.000. It also happens with cement. When cement in Jakarta only at a range of IDR60.000, people in Papua was so hard in building a house as the price of cement reached IDR2 million.

The cause is the insufficient infrastructures which are the carried the materials. From Jayapura, cement and gasoline had to be transported by air to get to remote areas like Wamena. Flight to Wamena was not cheap because the weather is unpredictable, and so other areas in Papua.

Roadways? If some areas can be reached, it needs more time. Time is all the cause that makes everything so expensive.

Now, after the Trans Papua started passably, people in Papua get more hope to have a new living. According to one of the official in Bina Marga, Yohanis Tulak, some of the people in Papua has built semi-permanent houses.

Economic growth in Indonesia has been hampered by the infrastructure for a long time. Sufficient and competitive infrastructures contribute to a reduction in operational cost activity and business. Other impacts are the increasing volume of economic activities, the decline in the cost of input businesses producing, a chance of new economic activities, and employment opportunities.

The infrastructure also provides positive effects on regional development connectivity to increase an inclusive growth. Infrastructure does not always mean transportation, but this sector has an important role. Transportation is proven to be able to maintain the availability of basic needs and lowering the gap of prices. Transportation is very important in the chain of passengers, goods, and services distribution that supports in creating equitable economic development, wealth, and social wealth.

No doubt, infrastructure is costly much. Not only money. Most people should sacrifice with all the excessive effect. But when all done, infrastructure will attract long-term investments. Infrastructure, especially transportation, being the basis of the economy to be able to reach its glory, that Indonesia will be the 4th largest economic state in the world on 2045.