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8/4/2019 The National Committee for the Acceleration of Infrastructure
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SAIMA SHAFI
13131(2010-2012)
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Indonesia, officially the Republic of Indonesia
(Indonesian: Republik Indonesia), is a nation
in Southeast Asia. Comprising 17,500 islands,
it is the world's largest archipelagic state.With a population of over 200 million, it is
the world's fourth most populous country and
the most populous Muslim-majority nation.
Indonesia is a republic, with an electedparliament and president. The nation's
capital city is Jakarta
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was established to coordinate the
acceleration of infrastructure provision with
the objective of national economic recovery.
was established with the Presidential DecreeNumber 81 Year 2001
the Asian financial crisis, the Indonesian
national budget plunged and the percentage of
spending on infrastructure significantlydecreased.
Policy for the Acceleration of Infrastructure
Development
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Government of Indonesia has long recognized
the vital role of basic infrastructure in
enabling and supporting sustained and rapideconomic development, and in improving
public welfare and opportunities for the poor
The Governments determination to
accelerate infrastructure development is oneof the steps taken to realize the expected
economic growth
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Multiplier effects of infrastructure development
are expected to touch every element social,
culture, politic, and even defense-security of a
nation Through infrastructure development, the
Government is optimistic to be able to open
millions of new employment as well as
eradicate poverty by providing access to basicinfrastructure desperately needed by poor
people.
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To realize the desired infrastructure
development, the Government launched a policy
package that consists of more than 150 action
plans to develop various types of infrastructure.
The Governments limited fund will be
concentrated in developing the basic needs such
as rural infrastructure through public service
obligation.
On the other hand, commercially viable andprivate cooperation feasible infrastructure will
be developed through public-private partnership
(PPP) regulation.
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Infrastructure development needs to have
pattern and direction that are able to
provide maximum benefit.
Hence, from this point, the role ofinfrastructure development policies becomes
the direction guideline to perform
infrastructure provision activities in
efficient, direct and responsive to change,global and regional, fashions.
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Infrastructure development policies, thus,
have to be formed in light of the creation of
a balance among various interests, including
that of the public, users and operator.
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Chairperson:
State Coordinating Minister for Economic Affairs
Executive Chairperson:
State Minister for National Development
Planning/Head of National Development Planning
Board (BAPPPENAS)
Secretary I:
Deputy Minister for Infrastructure and Regional
Development, Coordinating Ministry forEconomic Affairs
Secretary II:
Deputy Minister for Infrastructure, Bappenas
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Members:
Minister of Home Affairs
Minister of Finance
Minister of Energy and Natural Resources
Minister of Public Works
Minister of Transportation
Minister of Information and Communication State Minister of State-Owned Enterprise
Secretary of the Cabinet
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Formulate the coordination strategies to
accelerate infrastructure provision
Coordinate the integration of planning and
programs and monitor the implementation ofpolicies
Formulate the implementation of public
service obligation (PSO) in the acceleration
of infrastructure provisionDetermine efforts required to solve various
issues relating to infrastructure provision.
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Transportation infrastructure
Road infrastructure
Water infrastructureWater supply and sanitation infrastructure
Telematics infrastructure
Electricity infrastructure
Oil and gas distribution infrastructure
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Following the worldwide trend of privateparticipation in infrastructure and increasedinfrastructure investment, the Indonesiangovernment initiated the PPP policy in the
1980s. The policy has been remarkably important to
enhance infrastructure provision in the economy.Table 8 provides a short description of theevolution of the PPP policy. Initially, the policy
in the 1980s still lacked a sound framework. Toaddress this issue, a new policy with a morecomprehensive framework that encouragedcompetition was adopted in the late 1990s.
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The impact of the policy related to PPPthe
result of private investment in
infrastructurecan be seen in Figure 24.
Private investment was increasing in the
1990s just before the economic crisis in late
1997 and 1998. During the economic crisis,
private investment went down dramatically.
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http://trialweb.bappenas.go.id/blog/wp-content/uploads/2010/12/duaempat.png8/4/2019 The National Committee for the Acceleration of Infrastructure
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structural reform of public enterprise, includingthe SOEs and Regional-Owned Enterprises (ROEs)
tackle the large-scale decentralization process.To improve the process of fiscal transfers from
the center, promote inter-regional cooperation,improve the institutional capacity of the regionalgovernments and agencies, a nd prevent localgovernment from imposing unnecessaryregulations or inappropriate taxes and levies.
the government wanted to complete the processof re-defining the role of the government formany sectors. This process has been initiated butmuch work remains to be done.
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The policies and efforts described have beenmade by the government to tackle the problemsin infrastructure development. Despite someachievements, there are a few lacunae. First,even though the need of building more
infrastructures has been realized, the decisionand finally construction of infrastructure is noteasy. Even though institutional coordinationamong government agencies has been arrangedand regulatory reform launched, speeding up
infrastructure decision has not automaticallyresulted. In this respect the researcher arguesthat the decision-making process with regards toinfrastructure is getting more complex in thenew environment with multi-actor involvementand balanced power.
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Second, there is an imbalance in
infrastructure growth among the provinces.
To this extent, the government has to pay
more attention to developing infrastructure
from the view of regional basis. Further,
there is an important issue in relation to
regional development policy and
infrastructure policy. Special attention
should be directed towards an interplay of
spatial and infrastructure development
policy.
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