The budget for regional infrastructure is large, which is why integration is needed.
Jakarta (ANTARA) - Regional integration is required to make infrastructure development have significant impacts on economic growth, senior economist from the Institute for Development of Economics and Finance (INDEF) Aviliani has said.

"The budget for regional infrastructure is large. That is why, integration is needed," Aviliani said during the Global and Indonesia's Economic Outlook webinar here on Friday.

The Infrastructure development still tends to prioritize a sectoral ego, which has led to the construction of infrastructure projects without any integration in their usage, she opined.

In seaport construction projects, for instance, they have mostly been undertaken without any sustainable usage plan put in place by regional governments, she pointed out. As a result, no ships can anchor in those seaports, she said.

Another example is the infrastructure constructed during the 2018 Asian Games in South Sumatra, which often went unused since the new regional government did not want to bear the maintenance cost, she added.

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"This needs to be fixed since the spending on that construction is very large and it would be a shame if the effect is minimal," Aviliani remarked.

Therefore, infrastructure construction in regions must give greater consideration to the human resources in the region, the direction of the region's development, and its economic plan, she advised adding, the market must be reviewed before any infrastructure is built.

At the webinar, Aviliani also urged the government to fix import regulations due to the rising prevalence of digitalization.

Using digital platforms, people can easily purchase imported products from abroad, she noted.

The ease of importing products from online platforms can impede attempts by domestic factories to raise production due to minimal demand for local products, she said.

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Translator: Agatha Victoria, Fadhli R
Editor: Rahmad Nasution
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