28 Years of Regional Infrastructure Reform
The 1998 Reform era did not arise solely from a political power shift. It was the result of decades-long accumulation of economic, social, and regional development disparities experienced by the public.
The Asian Financial Crisis of 1997–98 merely acted as a catalyst that exposed the fragility of Indonesia’s then-development structure.
When the rupiah’s exchange rate collapsed, the banking sector crumbled, and basic goods prices soared, the public realised national development had not been built on a strong and equitable regional economic foundation.
At that time, Indonesia’s economic growth appeared strong, but it was heavily concentrated in Java and certain major cities.
Modern infrastructure was largely built in main growth centres, while regions outside Java, border areas, small islands, and remote areas lagged in road access, electricity, clean water, ports, education, and healthcare services.
Reform became a pivotal moment to correct overly centralised and growth-focused development paradigms.
Mohammad Hatta’s concept of people’s economy and cooperatives, which placed public welfare as the primary goal of development, once highlighted the need for equitable development.
Similarly, Widjojo Nitisastro and early development planners understood that economic growth without fair spatial distribution would lead to social inequality and political instability.
In regional terms, urban planners and regional development thinkers consistently reminded that Indonesia is not just Jakarta, but an archipelago with highly complex geography.
Twenty-eight years after the reform, the key question remains: how successful has reform been in addressing regional infrastructure disparities in Indonesia?
Looking at the late 1990s, Indonesia’s basic infrastructure was severely limited.
National roads in many regions were narrow and deteriorated, with many regencies lacking adequate road connectivity.
Maritime transport was inefficient, ports faced high logistics costs, and electricity had not reached all villages.
Piped clean water served only a small portion of urban populations, while waste management largely relied on open dumping without modern systems.
Even in major cities, flooding, traffic congestion, and slum settlements were chronic issues.
Ironically, some issues persist today, albeit on a different scale. Traffic congestion has worsened due to a surge in motor vehicles.
Waste generation has risen sharply due to increased consumerism.
Energy demand has surged with industrialisation and urbanisation, while clean water needs have grown due to population growth and urban expansion.
Nevertheless, Indonesia has made significant infrastructure progress over the past 28 years.
Expressways have expanded rapidly across islands, new airports built in many regions, and ports expanded.
Electrification programmes have drastically increased the percentage of electrified villages.
Dams and irrigation systems have increased, while telecommunications infrastructure has rapidly expanded to remote areas.
Modern mass transit systems, including MRTs, LRTs, BRTs, and high-speed trains, have emerged in major cities.