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The Important Role of Priority Infrastructure Development to Improve Indonesia's Competitiveness

by Sebastianus Epifany Wednesday, September 6, 2017 - 08:52

JAKARTA - Infrastructure is one of the key elements to realize Indonesia as a competitive and prosperous country from the economic side. Based on Global Competitiveness Index 2016-2017 released by the World Economic Forum, Indonesia's competitiveness ranked 41 out of 138 countries while infrastructure competitiveness is ranked 60th while technological readiness is ranked 91 out of 138 countries. Whereas Indonesia competitive rank is expected to be 35 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Indonesia Competitiveness Rank is projected to trend around 30.00 in 2020, according to our econometric models.

This shows that infrastructure is still needed to improve the nation's competitiveness and respond to the challenge of uneven development that supports the distribution and logistics channels, thus affecting income in every region in the country. Indonesian Government is aware of the condition by establishing infrastructure development as one of the 2018 priority targets aiming to improved inter-regional connectivity while achieving economic growth of 5,4 percent.

The impact is infrastructure expenditure in the  State Revenue and Expenditure Plan (RAPBN) of 2018 increased 5,6 percent to Rp 409 trillion compared to the APBNP of 2017 amounting to Rp 387,3 trillion. The amount includes economic infrastructure spending of Rp 395,1 trillion, social infrastructure Rp 8 trillion, and infrastructure support Rp 4,9 trillion. To realize inter-regional connectivity, the government plans to build new highways along 865 km, 6 airports, 15 ports and 639 km of railway lines. In addition, the government is also continuing the construction of the Palapa Ring fiber optic backbone network in 57 districts.

President of the Republic of Indonesia Joko Widodo (Jokowi) explained in his speech when reading the RAPBN 2018 notes in the plenary session of the House of Representatives in mid August, “Increased spending is directed to funding priority programs such as infrastructure in maintaining inter-regional connectivity, supporting economic growth, absorbing labor and reducing poverty and inequality.”

In response, Tarsus Indonesia, a business-to-business (B2B) based event, exhibition, conference and media company together with the Indonesian Chamber of Commerce and Industry (KADIN) and the Ministry of Public Works and Housing (KEMENPUPR) aims to present the answers to Infrastructure needs in Indonesia by holding Indonesia Infrastructure Week (IIW) on 8 - 10 November 2017 at the Jakarta Convention Center (JCC). This annual event will feature a variety of products, technologies, best services in the infrastructure sector as well as the exposure of various priority infrastructure projects spread across the region.

The event features three special elements of the exhibition, ranging from high-level investment forums, exposure to various infrastructure projects, and exhibition of infrastructure products and technology. To support the development of government-prioritized infrastructure, IIW 2017 presents 5 new segments: Infrafinance Indonesia, Infrarail Indonesia, Infraports Indonesia, Infratraffic Indonesia, Special Economic & Industrial Zone.

“Indonesia Infrastructure Week (IIW) is held in collaboration with the Government represented by the Ministry, SOEs and other best private companies, by means to generate business opportunities for many parties in the infrastructure sector while directly supporting the important vision of infrastructure development that sustains Indonesia economic growth,” said Didit Siswodwiatmoko, Managing Director of Tarsus Indonesia as organizer of IIW 2017.

Indonesia Infrastructure Week (IIW) 2017 is designed to be a meeting place for government and private sector, both from within and outside the country to be able to dialogue, share knowledge on the issues, and showcase the latest products and technologies. This event presents opportunities for visitors to build networks as well as doing business and gain learning and knowledge from conference sessions filled with speakers from professionals of private and government infrastructure sector.

Indonesia Infrastructure Week on 8 - 10 November 2017 at the Jakarta Convention Center (JCC) will be held co-location with Konstruksi Indonesia (KI) 2017 and The Big 5 Construct Indonesia 2017. This makes this event as one of the largest and most comprehensive exhibitions of infrastructure and construction in the country.

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