TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) is pushing for speedy infrastructure development as the government generated repatriated funds in the tax amnesty program.
Kadin deputy chairman for construction and infrastructure Erwin Aksa said that the government should put more attention to halted infrastructure projects. He also suggested the government to prioritize local construction workers, citing major infrastructure projects carried out by foreign contractors.
“Development of various infrastructure projects is expected to give economic added value and encourage the growth of competent national companies,” he said Thursday in Kadin meeting.
According to him, Kadin appreciates the government for making a breakthrough by rolling out the tax amnesty program. The government expects to generate Rp165 trillion in the program to add to the state’s coffer.
“I’m hopeful of improved state revenue next year, also better infrastructure spending. Hopefully the SOEs can be healthier to develop infrastructure project [which is currently] not feasible,” he said.
Erwin added that that Kadin also appreciates President Joko Widodo’s instruction on SOE securitization in a bid to secure funding for state-owned companies to develop new infrastructure.
“Securitization of mature assets such as [state-owned] Jasa Marga and PLN can generate more funds so that SOEs shall no longer rely on small budget or wait 40 years for maximum results,” he said.
According to him, extablished infrastructure will create new economic centers which will boost national economic growth. At present, Java Island still dominate the national economy, boasting 58% contribution to gross domestic product (GDP) thanks to its advanced infrastructure.
Whereas less established regions such as Maluku and Papua, despite having a combined area three times larger than that of Java, can only contribute 2.37% to GDP.
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