Government Spends IDR 2,779.9 Trillion, Jokowi’s Era of Infrastructure Development Goes Massively

infrastructure development

Under President Joko Widodo’s leadership, Indonesia has witnessed a remarkable emphasis on extensive infrastructure development, signaling the nation’s potential to transition from an emerging market to an advanced economy in terms of economic growth. The government’s commitment to this endeavor is exemplified by the substantial allocation of Rp2,779.9 trillion for infrastructure development from 2015 to 2022.

This significant investment, as stated by Minister of Finance Sri Mulyani Indrawati during a joint working meeting with the House of Representatives’ Budget Committee on May 30, 2023, has facilitated the realization of numerous infrastructure projects aimed at enhancing Indonesia’s competitiveness.

The tangible outcomes of these efforts are evident across various sectors. The length of operational toll roads, for instance, has experienced a substantial increase, expanding from 802 km in 2014 to an impressive 2,687 km by 2022. Similarly, power generation capacity has grown from 53 gigawatts (GW) in 2014 to a robust 81.20 GW, ensuring a reliable energy supply for the nation.

The development of transportation infrastructure has also been a priority, with the number of airports rising from 237 in 2014 to 287 in 2022. This expansion has resulted in improved connectivity and facilitated regional development. Additionally, the number of ports has increased from 1,655 to an impressive 3,157 units, supporting the growth of maritime trade and enhancing Indonesia’s position as a global trading hub.

Furthermore, the construction of dams has significantly increased water storage capacity, rising from 6.39 billion m3 in 2014 to an impressive 16.96 billion m3 by 2022. This has not only bolstered water management capabilities but also supported agriculture and environmental conservation efforts.

The development of public roads has also played a crucial role in connecting communities and driving economic growth. The total length of public roads has expanded from 517,750 km in 2014 to 549,160 km in 2022, providing improved accessibility and promoting economic activities across the archipelago.

Minister Sri Mulyani emphasized that these infrastructure advancements are not merely aimed at luxurious undertakings but rather focus on boosting productivity, enhancing mobility, and fostering inclusive growth in all corners of Indonesia. By prioritizing infrastructure development, the government seeks to create an enabling environment for economic activities, promote regional development, and uplift the quality of life for all Indonesians.

Looking ahead, the government’s commitment to infrastructure development remains steadfast. The allocation of Rp396.9 trillion to Rp477.5 trillion in the 2024 State Budget (RAPBN) emphasizes the importance of continued investment in infrastructure. These funds will be allocated to various projects aimed at supporting economic transformation, including technology and communication advancements, energy sector improvements, agricultural development, and enhanced connectivity.

Additionally, the budget allocation will facilitate the timely completion of the ambitious project to establish the new Indonesian capital city (IKN), ensuring a sustainable and gradual transition to a more modern and efficient administrative hub.

In summary, President Joko Widodo’s tenure has witnessed a robust focus on infrastructure development, supported by substantial budget allocations. These investments have resulted in significant achievements across various sectors, enhancing connectivity, bolstering economic growth, and positioning Indonesia as a nation with great potential for advancement. The government’s commitment to infrastructure development remains strong, paving the way for continued progress and improved quality of life for all Indonesians.