Indonesian Political, Business & Finance News

Indonesia Must Learn from the Philippines

| Source: CNBC Translated from Indonesian | Infrastructure
Indonesia Must Learn from the Philippines
Image: CNBC

Every time I visit the Philippines for work, the feeling that arises is always the same: a strong sense of familiarity, as if I am returning home to Indonesia. The similar physical appearance of the people, cultural ties, roadside stalls, minimarkets, and the many shared vocabulary words between Tagalog and Indonesian create a powerful emotional bond. Yet, behind these similarities, there is one thing that leaves me both awestruck and slapped in the face as a development practitioner in the agribusiness sector: the effectiveness of the Farm-to-Market Road (FMR) programme. The Philippines, like Indonesia, is a large agrarian country. However, they have a highly strategic infrastructure policy to support the agricultural sector. Since 1997, the Philippine government has designed and approved the FMR as part of the national long-term development plan. Formal construction began in the early 2000s, and by 2026, they have successfully built approximately 70,000 kilometres of roads as smooth as toll road quality, out of a total target of 130,000 kilometres. The remaining 60,000 kilometres of the target are not yet like toll roads; they are still unpaved or uncemented, but relatively smooth without potholes and can accommodate two cars passing each other. This is because the roads were opened by local governments in synergy with the central government for the shared national interest. Villagers also understand that the land clearing is for their own benefit, so there is rarely any drama over land acquisition. For me, this is not just a statistical figure. During several working visits to villages up to a four-hour drive from the Philippine capital, Manila, even in remote villages with no mobile phone signal, the road quality is smooth, durable, and capable of allowing two large vans to pass each other without hindrance. This is a real and planned development transformation, slow but sure. Why is this so important? Because the main problem in our agricultural sector—in both Indonesia and the Philippines—is often not just about production, but about distribution. High food loss or post-harvest waste frequently occurs due to poor road access from farmland to markets. With smooth roads, harvests reach the market faster and in fresh condition. Maintained product quality increases selling prices, which ultimately boosts farmers’ incomes and the overall regional economy. Moreover, the FMR in the Philippines is the result of synergistic collaboration led by the Department of Agriculture, executed by the Department of Public Works and Highways and local governments across the Philippines. The multiplier effect is real: villagers become more productive, access to schools is easier, and population mobility increases. This is a holistic investment in rural progress. This reality in the Philippines is a harsh slap for us in Indonesia. Economically, both the GDP and GDP per capita of the Philippines are still below Indonesia’s. Yet, why are they able to build village infrastructure with toll-road-class quality that lasts for years, while we often find newly asphalted roads already damaged within weeks? We often hide behind excuses of climate, heavy rain, and so on. However, the Philippines faces even more extreme challenges; they are frequently hit by typhoons that often devastate settlements, yet their road construction has proven able to withstand them. If it is not the climate, is the problem one of integrity? Is it because in Indonesia, infrastructure development is often trapped in markup practices that degrade quality from toll road standards to second- or third-class quality? We must answer this question honestly. How long will we continue to allow our vital infrastructure to be sacrificed by inefficient practices and a corrupt mentality? If we do not immediately learn from our close neighbour and improve our infrastructure development governance, we must be prepared to be left behind. It is time we make quality, durability, and economic impact the primary benchmarks, not merely fulfilling a ‘project’ obligation.

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