Transportation sector key driver of economic growth: minister

Transportation sector key driver of economic growth: minister

A screenshot of Minister of Transportation, Budi Karya Sumadi, at a webinar on 'Economic and Business Environment Analysis of Disruption in the Transportation Sector' originating from Jakarta on Friday (October 8, 2021). (ANTARA/Adimas Raditya/KT)

We must look for opportunities by developing human resources through adapting and innovating.
Jakarta (ANTARA) - Transportation Minister Budi Karya Sumadi has affirmed that the transportation sector plays an important role as a driver of national economic growth.

"Transportation is the economic growth driver and the backbone of the distribution process of goods and (mobility of) people," Sumadi remarked during a webinar on "Economic and Business Environment Analysis of Disruption in the Transportation Sector" originating from here on Friday.

The existence of transportation infrastructure is also key for bringing out regions from isolation so as to push connectivity, he said.

In addition, transportation infrastructure is one prerequisite for improving the competitiveness of national products and supporting the development of cities due to urbanization, which is currently occurring in Indonesia, the minister said.

Despite the COVID-19 pandemic, Indonesia's economic growth in the second quarter of 2021 reached 7 percent, he pointed out.

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The economic growth could be achieved due to collaboration and synergy between the government and all elements of society in recovering the national economy, including the transportation sector, Sumadi said.

"The infrastructure development of the transportation sector is intended to increase connectivity and stimulate economic growth in many regions of the country," he added.

Connectivity between regions is expected to bolster economic growth and can help make the price of staples more affordable as it controls price disparity, the minister said.

In the current era of digital disruption, the transportation sector must be responsive by developing several innovations, he added.

One of the disruptions experienced is the existence of online-based transportation that offers more practical bookings with cheaper payments, he said.

"This (digital) disruption creates new markets and opens up new jobs. It can break conventional transportation, so we must look for opportunities by developing human resources through adapting and innovating," he added.

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