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The Importance of Infrastructure Development in Indonesia

Do you know the importance of infrastructure development in Indonesia? If not, don't be in a hurry to skip this article! The phrase infrastructure development has often been heard. It's just that few people know and understand what infrastructure development is and what impact it will have on Indonesia.

As an archipelagic country with the most population, Indonesia's geography is a challenge for the government to be able to equalize development. The government must have good policies to support infrastructure development in order to support economic activity in Indonesia. Well, to find out the importance of infrastructure development in Indonesia, let's look at some interesting information below!

Background and Importance of Infrastructure Development

The background for infrastructure development in Indonesia is the geographical condition of Indonesia itself. Why is that? This is because Indonesia is a vast archipelagic country. To support mobilization and improve the economy, sustainable infrastructure development is needed.

How important is infrastructure development in Indonesia? The answer is very important. This is because infrastructure development affects economic growth in Indonesia. Development in various sectors has a significant effect on regional development. In addition, the development carried out can provide added value to the industry and create new job opportunities.

President Jokowi himself said that the competitiveness of Indonesian products would be difficult to compete with other countries if Indonesia's infrastructure was not good. One of the infrastructures that can accelerate economic growth is in terms of transportation such as toll roads. For more than 40 years the construction of toll roads has begun. Unfortunately, the toll road sections that were built did not increase significantly.

Infrastructure Development Goals in Indonesia

Once you know how important infrastructure development is in Indonesia, it's a good idea to know what the goals of infrastructure development are. There are several goals that the government wants to achieve by promoting infrastructure development, such as increasing connectivity, and stimulating economic growth in various regions of the country.

Not only that, the ongoing development of infrastructure is a form of social justice for all Indonesian people. So, the development that is being promoted by the government is not only in Java but is evenly distributed to all regions in Indonesia. With good infrastructure, the mobility of goods can be easier and make the prices of basic products or goods more affordable.

The Role of Infrastructure Development in Indonesia's Progress

Infrastructure development in Indonesia is able to encourage Indonesia's progress in a better direction. Even infrastructure development is a priority for a country. With good infrastructure development, it can increase the country's productivity and competitiveness.

The development of good and equitable infrastructure can save the cost of setting up a factory. Usually, the industrial location has been provided by the government, this allows companies to get a place to operate at a cheaper price, and factory construction can run more efficiently. Even good infrastructure is also able to increase the efficiency of the company's operations.

Good infrastructure is also able to facilitate the distribution and mobility of goods. Whether it's operations when transporting raw materials and final goods. Shorter and more efficient time makes product prices competitive and not too expensive. It is conceivable that bad infrastructure will certainly make operations run smoothly. This makes product prices expensive and uncompetitive.

The increase in transportation infrastructure in an area also makes the improvement of facilities and infrastructure more equitable. When the distribution goes well, there is no longer such a thing as an underdeveloped region, and poverty in an area becomes more resolved. Apart from transportation, communication infrastructure also needs to be improved. By increasing development in the field of transportation and communication, inequality will not occur.

In addition, infrastructure does not only cover the supply point of view. But also seen from the services provided. If viewed broadly this infrastructure can be categorized into physical, social, and financial. For the progress of the Indonesian state, it must be able to balance the three infrastructures. Check out the meaning of each of these infrastructures below!

  1. Physical Infrastructure

    This infrastructure can increase Indonesia's progress because it is able to make mobility better. One form of physical infrastructure is transportation such as railroads, roads, and so on. Its contribution is in the form of accelerating economic growth by reducing transaction costs.

  2. Social Infrastructure

    Social infrastructure is able to make Indonesia more advanced. The way is through the enrichment of human resources in terms of education, health, and so on. With the increasing quality of human resources, it is hoped that Indonesia will be more advanced than before.

  3. Financial Infrastructure

    Financial infrastructure is cooperation with banks, state financial taxes and postal services. The existence of this infrastructure is important in increasing economic and social development.

The Role of PT SMI (Sarana Multi Infrastruktur) as a Catalyst for Infrastructure Development

Discussing the development of memory infrastructure and thoughts immediately focused on PT SMI. What's that? PT SMI is a credible and the best Infrastructure Financing Company in Indonesia. Many infrastructure projects in Indonesia have been financed by PT SMI. With the financing provided, infrastructure development can be faster so that economic growth is also faster.

In the national infrastructure development, PT SMI has various amazing roles, namely creating products to fill market gaps and being a catalyst for infrastructure financing, municipal financing, namely financing to local governments to accelerate regional development.

The next role of PT SMI is to promote investment through the provision of consulting services, KPBU project development and capacity building. Then enter into equity participation from infrastructure projects or equity financing.

It's not enough, PT SMI also issued the first corporate green bond in Indonesia for green financing purposes. Next is SDG Indonesia One, which is an integrated platform used to fund projects with an SDG orientation consisting of project development, derisking, financing and investment.

The last role is to support the PEN program, Research and product knowledge. PT SMI supports the implementation of government investments to save SOEs in the context of PEN and distributes loans to areas affected by Covid-19. PT SMI also produces quality economic products to support financing.

There are several KPBU project preparations in which there is a role for PT SMI such as Umbulan SPAM, Lampung SPAM, West Semarang SPAM. PT SMI also plays a role in telecommunication projects such as the West Package Palapa Ring, Central Package Palapa Ring and finally the East Package Palapa Ring.

Need Infrastructure Funds? Just choose PT SMI!

One of the obstacles that prevent infrastructure from running optimally is the limited source of financing which only relies on the APBN and APBD. Moreover, regional infrastructure development has not been evenly distributed. Therefore, to accelerate regional and national infrastructure development, you can apply for financing to PT SMI.

There are many products and services that you can get and take advantage of. These services can be tailored to your needs. The services you can get are financing and investment, consulting services and finally project development. These three services are also the business pillars of PT SMI (Sarana Multi Infrastruktur).

For the sake of realizing better infrastructure development in Indonesia, let's contact PT SMI right now, see and choose the product through this link.

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