Infrastructure projects become Prabowo-Gibran's priority programme
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 - Proyek infrastruktur jadi program prioritas Prabowo-Gibran
26 June 2024
By Heru Febrianto
Jakarta, ID – The 2025 draft state budget (RAPBN) indicates that infrastructure projects will be one of the priority programmes continued with the first state budget (APBN) of the administration of Prabowo Subianto and Gibran Rakabuming Raka.
This was stated by Budget Director General of the Finance Ministry Isa Rachmatarwata during a meeting on the central government expenditure policy for the 2025 RAPBN with the Budget Board of the House of Representatives (DPR) on Tuesday (25/6).
Besides downstreaming and investment, he thinks that infrastructure development will be one of the top three priority programmes in the 2025 RAPBN. This initiative aims to promote strong economic growth.
“Infrastructure development is an effort to grow the economy,” Isa Rachmatarwata said, quoted by Antara in Jakarta on Tuesday (25/6/2024).
He affirmed that the infrastructure that will be focused on included roads, railways, dams, and educational facilities. Isa stated that infrastructure investment was expected to provide significant added value to Indonesia’s economy.
“We believe infrastructure improvements are needed for high growth,” he explained.
For instance, Isa mentioned that toll road projects, while not being basic infrastructure, were meant to stimulate regional economic growth. Therefore, by implementing infrastructure projects across various regions, the government hopes to achieve balanced economic growth.
During the occasion, he also explained that infrastructure projects that will be continued by the Prabowo-Gibran administration included national strategic projects (PSNs) and Nusantara Capital City (IKN).
“Regarding IKN development, we will maintain its momentum. We will make it one of the economic growth centres,” he added.
President-elect Prabowo Subianto and Vice President-elect Gibran Rakabuming will be inaugurated on 20 October 2024, taking the president and vice-presidential oaths.
An infrastructure observer from Universitas Trisakti, Yayat Supriyatna, mentioned that allocating funds for IKN and PSNs in the RAPBN of the Prabowo-Gibran administration was crucial. This was because President Joko Widodo (Jokowi) aimed to leave behind a mega infrastructure project, such as IKN, as part of his legacy.
“It cannot be abandoned. Moreover, if the public sees the closeness between President Jokowi and President-elect Prabowo Subianto. The most important aspect is how IKN can progress despite existing challenges,” Yayat said when contacted by Investor Daily.
However, he pointed out that infrastructure encompassed more than just developing IKN. It also involves ensuring balanced development throughout Indonesia.
“It must be recognised that Indonesia stretches from Sabang to Merauke. Balancing infrastructure is a significant challenge that requires a substantial budget. We have to allocate the APBN more equitably,” he stated.
He added that the development of IKN has not been smooth, as beyond basic infrastructure, additional facilities were also needed to ensure the new capital city becomes vibrant and serves as an example for other cities in Indonesia.
“The participation of the private sector is required. We will see how they see the large potential of IKN with infrastructure that is more advanced compared to other cities in Indonesia,” he added.
JTTS continued
Previously, Public Works and Housing (PUPR) Minister Basuki Hadimuljono proposed the new government to continue the development of dams and toll roads, especially Trans-Sumatra and Trans-Java toll roads.
“Regarding water resources, we proposed to build 50 dams in the next five years,” Basuki said in Jakarta recently.
He also suggested that the upcoming administration should continue constructing the Trans-Sumatra toll road to ensure its connectivity. Similarly, attention should also be given to completing toll segments on the Trans-Java toll road, including the Banyuwangi, Semarang, Demak, Kudus, and other toll segments.
“We suggest connecting the Trans-Sumatra toll road,” he said.
According to Basuki, the PUPR Ministry is currently preparing a strategy for the next five years, with the aim of having it approved by the new administration.
He suggested that the administration should focus on constructing water and sanitation infrastructure projects as well as improving connectivity over the next five years, with the goal of enhancing public well-being and prosperity.
“Dams and toll roads will also be constructed to address the existing infrastructure gap. Do not compare ourselves to China that has 98,000 dams, South Korea with 20,000 dams, and Japan with 1,900 dams. Indonesia, with the completion of 61 new dams, will only have 300 dams,” Basuki said.
He said that, based on the capacity, dams in China have an average capacity of 100 million cubic metres. Meanwhile, Indonesia only has an average capacity of 10 million cubic metres.
“So, there is still much construction that needs to be carried out to achieve the 2045 Golden Indonesia vision,” he stated.
