REPUBLIKA.CO.ID, JAKARTA -- The government will give priority to development of connecting infrastructure between regions including highways totaling 864 kilometers in various areas especially in border areas in 2018.
The infrastructure projects would be built by the Public Works and Housing Ministry.
Public Works and Housing Minister Basuki Hadimuljono said his ministry is one of the agencies having the largest allocation of fund from the draft state budget for 2018.
The allocation of fund for the ministry is Rp106.9 trillion, but most or 70.6 percent of the fund would be for capital goods.
"From the budget allocation of Rp106.9 trillion Rp41 trillion would be for transport infrastructure including for the repairs and maintenance of 46,000 kilometers of national roads and construction of 864 new roads, and 25 kilometers of toll roads," Basuki said.
He said most of the 864 kilometers of new roads to be built in 2018 would be in border areas of Kalimantan and Papua (Trans Papua).
He said there are bridges project totaling 8,037 meters, tunnels totaling 588 meters, flyovers and maintenance of bridges totaling 497,515 meters.
In addition, the ministry will also build irrigation systems including 47 dams, 106 kilometers of flood control infrastructure, 11 kilometers of beach safety infrastructure, 54,000 kilometers of new irrigation networks, 54 retention basins , 16 units of lava control infrastructure, etc.
In building construction and design, the ministry will give priority to construction of drinking water facility with a supplying capacity of 9,372 liter per second , etc.
In Housing sector, the government will build 6,238 units of low cost apartment houses, 5,000 units of special houses , etc.
"We are charged with the duty of building land transport facility, roads and bridges, irrigation networks and housing," the minister said.
The infrastructure projects are designed to support and facilitate economic development and to reduce economic gap.
The government hopes to chalk up a 5.4 percent economic growth in 2018 backed up by expected increase in investment and exports and imports.
The projection is based on assumptions that household consumptionand exports would grow 5.1 percent each , government spending would rise 3.8 percent , gross fixed capital formation is 6.3 percent and imports rising 4.5 percent.
Other macro economic indicators include inflation predicted to average 3.5 percent, rupiah value 13,500 per US dollar, interest rate on 3-month state treasury securities (SPN) at 5.3 percent , the price of Indonesian crude oil at US$48 per barrel, oil lifting at 800,000 barrels per day and gas lifting averaging 1.2 million barrels oil equivalent per day.
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