How to Do the Infrastructure Fund Effectively

How to Do the Infrastructure Fund Effectively

SMI
Source: valueresearch.com

Indonesia is indeed known as one of the rich countries in term of natural resources. Unfortunately, this is not balanced with the development of infrastructure. Yes, the development of infrastructure still becomes a big problem. It is mainly due to the area of this country which is large as well as it consists of thousand islands. It just makes the development only focuses on certain areas only particularly in Java. So, how about the rest? Many of them are still not touched by necessary development. It of course generates other problems particularly in term of welfare. Besides, the quality of infrastructure itself is also still less when it is compared with any other countries in Asia like Singapore, China, and even India.

Actually, it is not that the government does not give efforts to increase the quality as well as spread the infrastructure development. However, the budgets for doing so are limited. It is only around 4.72 from the gross domestic products. It is much less than other countries around like Thailand and Vietnam. Based on that fact, the government expects more cooperation from the private sectors. Yes, the budgets for infrastructure development are mostly given by the government whether it is central and regional government. With more participation from other sectors, it is expected that there will be more increasing of quality in term of infrastructure development. Besides, the range of development can also be wider, not only in Java but also other islands like Sulawesi and Papua. Besides, the government has also established some organizations to fund the infrastructure that involve different fields. The money found to fund those organizations actually still comes from the government. However, it is considered as more effective since it enables them to fund the development of infrastructure in much larger areas. This is how the infrastructure is found faster and more effectively.