Hence, we plan similar to what we need to change overall."Jakarta (ANTARA News) - Indonesian President Joko Widodo (Jokowi) has called for greater integration between the central, provincial, city, and town governments in a bid to consolidate development efforts in an optimal manner.
"What I observed was the presence of dams, but no irrigation (had been conducted) for years. There were ports but no access roads, which means that efforts were not made in a consolidated manner, with no integration between the central, provincial, city, and town governments," Jokowi stated while opening the National Development Planning Meeting 2017 for the governments work plan 2018 in Jakarta on Wednesday.
Jokowi assessed that such situations arise, as the planning is only project-oriented, thereby resulting in no output.
"Hence, the important step is to outline the priority, as less is better. Outlining one or two priorities is a viable approach, as the process would be managed in a sharper and better manner," the president explained.
Jokowi also stated that the allocation of funds from the states national budget (APBN) to build infrastructure is still low, and some investment is needed.
The president has estimated that the budget needed to build infrastructure will amount to Rp5,500 trillion in five years and allocated funds from the APBN will reach Rp1,500 trillion.
"This means it is only less than 30 percent. How could we cover the rest? From investment, there is no other way except for investment," he emphasized.
To this end, the president has urged State-owned Enterprises (BUMN) handling infrastructure development to formulate plans, so the profits from the sale of assets could be channeled to develop other areas.
"Take the highway road as an example. I have already ordered the BUMN if the highway has been built, they need to soon sell and be securitized," Jokowi stated.
The president explained that if a budget of around Rp10 trillion is required for highway development, they could sell it for Rp30 trillion, thereby resulting in profits to be directed to develop other areas.
"After we sold it at thrice the value, we can then sell it at 10 folds the cost. It should be done like that," he remarked.
Jokowi stated that the current plan to generate funds from profits made by operating the highways is an old-fashioned approach.
"The BUMN had earlier owned and received profits from the usage every month, which is an old-fashioned method. Our country needs greater road access in provinces outside Java. If there is no securitization, there will be no infrastructure," he pointed out.
Moreover, Jokowi expressed optimism that the development of ports would also be carried using a similar approach.
"Hence, we plan similar to what we need to change overall," Jokowi added.
(Reported by Joko Susilo/Uu.Ian/KR-MBR/INE/KR-BSR/A014)
Editor: Priyambodo RH
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