Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said that digital transformation is essential for the adoption of modern business processes in the construction industry.

"We must start adopting and adapting to digitalization in planning, management, and implementation, as well as more data-based decision-making," he added here on Wednesday.

He said that sustainable infrastructure development can be realized not only by implementing various environmentally friendly technologies, but also by efficiently using resources, pursuing innovation, and involving local communities in construction processes.

"This condition demands a transformation of the traditional construction process into a modern process through digital technology in every construction process," he added.

Massive and uniformly distributed infrastructure development can be one of Indonesia's main assets to get out of the middle-income trap, while providing a multiplier effect on national economic growth.

It is also hoped that the construction industry will have good prospects in the future, in line with the fairly strong national economic base.

In the second quarter of 2023, the construction business sector grew by 5.23 percent (on an annual basis) and contributed 9.43 percent to the gross domestic product (GDP).

It emerged as one of the main supports for the GDP in addition to the processing industry, agriculture, trade, and mining.

The 2024 Draft of the State Budget (RAPBN) has set an infrastructure budget of Rp422.7 trillion to encourage accelerated and equitable development.

Infrastructure development, said Hartarto, must be carried out in a sustainable manner by considering the capacity of natural resources, disaster vulnerability, and the welfare of the surrounding communities.

To realize sustainable infrastructure development based on digital transformation, several conditions need to be met, including a collaborative mindset, leadership vision and mission in the digital sector, policies that are easy to implement, and reliable human resources (HR).

Indonesia has a large number of human resources and is entering a demographic bonus period.

It is believed that this rare opportunity needs to be utilized as best as possible by preparing a highly skilled young generation to meet the needs of the digital-based and sustainable construction sector.

"Indonesia continues to develop by setting high standards," Hartarto said.

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Translator: Aji Cakti, Katriana
Editor: Azis Kurmala
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