Sustainable infrastructure development<\/p>\n
Giovanni Comparini, Jakarta<\/p>\n
I have followed very closely the 100-day program of the
\nIndonesian government to find solutions to infrastructure
\ndevelopment, the importance of which has become even more topical
\nafter the floods, which paralyzed Jakarta just a day after the
\nInfrastructure Summit's end. From the renowned guests' speeches
\nand significant articles\/excerpts in The Jakarta Post, it clearly
\nemerges that this important and laudable initiative of Indonesian
\ncentral government is aimed at filling the huge gap between the
\nfunds made available by the state budget and lenders, and those
\nnecessary to finance the five-year development plan of basic
\ninfrastructure.<\/p>\n
To achieve this important objective, Indonesia central
\ngovernment has promised to speed up regulatory reforms, and to
\npropose investment opportunities to the private sector,
\nparticularly foreign investors. While this move seems to be
\nrealistic and appropriate, there are certain aspects of the
\nprivate sector participation that merit careful analysis.<\/p>\n
The effectiveness of the huge financial resources allotted to
\nany development plan will depend on many interrelated factors --
\nparticularly the way the various projects are managed and
\ncoordinated at central and local level by the involved
\ngovernmental institutions. Their management capability,
\norganization arrangement, human resources' know-how and
\nbehavioral characteristics will play a fundamental role in the
\ninitiative's final success.<\/p>\n
This means, in other words, that the expected economic growth
\nof 6 percent cannot be considered a certainty. This target might
\nbe reached and even exceeded, or it might be missed, based on
\nthis institutional performance. A key-factor that will determine
\nthe initiative's success or failure might be what is called the
\n\"institutional culture\" of the participating governmental
\norganizations, and the complex of internal rules, expressed or
\nnot, which determine the actual way an institution functions and
\nperforms. As a matter of fact, many project assessments have
\nshown that a gap between the \"institutional culture\", and the
\nculture implicit in the objectives\/targets pursued, results in a
\nproject failure.<\/p>\n
At present, the \"institutional culture\" of Indonesian public
\nadministration is often questioned, and the most questioned
\naspects concern issues such as policy and legal uncertainty,
\ncorruption and nepotism, and a general lack of good governance,
\ntransparency and accountability. However, the present system,
\nlike all established and consolidated systems, is reluctant to
\nchange, and needs new incentives and pressures, which cannot be
\nfound inside the system itself.<\/p>\n
There is a clear need for new forces, able to induce the
\nsystem to move from the current paradigmatic positions, to those
\nof a system more transparent, flexible, and closely connected
\nwith civil society. Local communities and the private sector
\ncould act as the new stakeholders, able to activate this cultural
\nchange.<\/p>\n
With this purpose, the new partners could become active and
\nan integrating part of a renewed system for public infrastructure
\nmanagement, which might replace the present monopolistic system,
\nand allow a more effective and fair service delivery. The private
\nsector, in particular, should act as a responsible and far-
\nsighted partner, going beyond what is the current stereotype of
\nthe role of the business world.<\/p>\n
This need of a more participative approach in public
\ninfrastructure management has been concisely but very clearly
\nexpressed during the Summit, in the presentation by the World
\nBank Vice-President for East Asia and the Pacific, concerning a
\nreform in the process for supplying public services. The proposed
\nprocess introduces a Consultative Council, consisting of local
\ncommunity and local institution representatives, which are
\nexpected to act as mediators between civil society's requirements
\nand aspirations, and governmental policies and positions. As a
\nresult, we can conclude that a new flexible and progressive
\nsystem needs to be institutionalized quickly, with the active
\nparticipation of the three stakeholders in the overall service
\ndelivery process.<\/p>\n
Therefore, an urgent question to be answered is how this
\nimportant institutional change can be supported and accelerated.
\nIt is clear that a similar paradigmatic change cannot come only
\nfrom one side, but needs the collaboration and commitment of the
\nthree involved parties: Government administration, local
\ncommunities, and the private sector.<\/p>\n
A realistic path foresees a long collaboration between these
\nthree partners, which would result in a progressive integration
\nof Indonesian civil society with the government administration.
\nPublic and private sectors in particular, should start a long
\nprocess of collaboration, which would cover not only technical
\nand financial aspects, but also management capability, knowledge
\nsharing\/dissemination, and other \"soft\"\/behavioral matters.<\/p>\n
If adopted, this collaboration should result in participation
\nschemes able to foster a process of progressive sharing,
\nintegration and development.<\/p>\n
A Build, Operate and Transfer (BOT) scheme could be
\nappropriate, if combined during the two preliminary steps (build
\nand operate) with institutional development. This long process,
\nif consistently implemented, would result in a progressive change
\nand development of the institutional frame and culture of
\nIndonesia's government administration, which manages service
\ninfrastructure. Finally, through the effect of induction, these
\nparadigmatic changes would spread throughout all levels of
\nIndonesia's government -- central, provincial and local
\ngovernment.<\/p>\n
The writer is a member of the Italian Business Association in
\nIndonesia. He has a wealth of experience in Indonesia in the
\nfield of institutional development and urban infrastructure
\nmanagement. He can be reached at compa@bogor.wasantara.net.id.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sustainable-infrastructure-development-1447893297",
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"sponsor": "Okusi Associates",
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