Regional Economy Boosted Infrastructure Development

JAKARTA, KOMPAS.com - Infrastructure development is considered appropriate because it is able to boost the regional economy. However, local governments are encouraged to continue to innovate in order to further optimize the potential of their respective regions, especially in the tourism sector and the rural economy.


The Dean of the Faculty of Economics and Business, University of Indonesia (FEB UI) Ari Kuncoro said that infrastructure development had boosted the production capacity of the economy, connecting the poles of economic growth. In addition, infrastructure development has encouraged increased access to work for urban and rural residents and increased trade access for residents, both urban and rural. The existence of infrastructure also increases access to health and higher education and relocation of the manufacturing sector to the regions


"What most people enjoy from Infrastructure is a matter of time (distance), people who used to have mediocre or poor connectivity in provincial roads can enjoy their trip. Secondly, it was memorable for the community that outside their area there were many interesting ones, and this is what drives the tourism sector, "Ari said in his statement in a discussion titled Measuring Infrastructure: The extent to which Infrastructure Development Stimulates Economic Development in Regions, Tuesday (6/8/2019). According to Ari, the impact of infrastructure development was also felt in the improvement of the regional economy. People no longer need to make a living in big cities, but they can build a business by staying in the village. "For the villager, now he can live in the village, he can have a business in his place. Farmers' children can use internet technology to sell their father's agricultural products," he explained.
The Director General of Village Community Development and Empowerment, the Ministry of Villages, the Development of Disadvantaged Regions, and the Transmigration (Kemendes PDTT) Taufiq Madjid revealed, currently there has been a change in the paradigm of village development, where villages are the main subject of development. "First, the granting of authority is based on the principles of recognition and subsidiarity, which means recognition and respect for the existence (existence of villages). While subsidiarity means the use of local staff authority," said Taufiq. Second, he added, the position of the village as a community-based government, which is a mixture of self-governing communities and local self-government. To realize this, Taufiq continued, the village fund policy was implemented in terms of infrastructure development, from 2015 to 2018, the distribution was increasing every year. "The village fund has increased transportation access. The village development program has also increased the implementation of village cash-intensive work through village funds, the development of the number of village-owned enterprises (BUMDes)," he said


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