Indonesia needs Rp6,445T to build infrastructure until 2024

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Indonesia needs Rp6,445T to build infrastructure until 2024
Construction of flyover dan underpass in Indonesia. (Source: Public Works and Housing Ministry)

According to Rio, infrastructure development is very important to optimize other potentials that Indonesia has, namely robust economic growth and a large population. He explained that Indonesia’s economic growth was consistently above 5 percent in the period between 2016-2022, except during the Covid-19 pandemic.

Although the economy contracted during the pandemic, real GDP has returned to pre-pandemic levels because it is supported by consumption, investment, exports, and manufacturing. The government has also set 5.3 percent as the target for next year’s growth, indicating that the economic recovery is accelerating.

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Infrastructure development will also benefit as many as 165 million middle class and aspiring middle class population who will become the engine of economic growth. Meanwhile, the potential for public-private partnership (PPP) in the field of public works and housing between 2020-2024 reaches Rp541 trillion. (rr)