Infrastructure summit and RI's future

Infrastructure summit and RI's future

Patrick Guntensperger, Jakarta

There probably has never been a more apt time for a summit
conference on Indonesia's infrastructure.

A major concerted effort to address the shop-worn and
inadequate infrastructure that characterizes Indonesia will have
benefits that reach far beyond the people's needs for better
surface transportation and delivery of public utilities and
services. There is no question that the shabby state of
Indonesian roads and the generally poor condition of public
facilities needs to be addressed.

The overall state of disrepair is bad for the country. It is
bad because it perpetuates a reputation for acceptance poor
standards, for Indonesia being content with second and third-rate
conditions.

It is also bad because people become accustomed to living
with shoddy, deteriorated infrastructure and a sense of pessimism
about life in this country becomes commonplace. An improvement in
the infrastructure will bring optimism and hope for the country's
future; something that is badly needed in Indonesia at this time.

On an economic level, the expenditure of trillions of rupiah
(as has been proposed) will be an enormous shot in the arm that
will have far-reaching effects throughout the archipelago.
Countries like the United States are comfortably aware that
nothing boosts a country's economy like being on a war footing.
That's because the public purse is opened and no expenses are
spared to accomplish the country's immediate goals.

The effect of the unrestrained spending is a rapid circulation
of wealth, the creation of new businesses and massive increases
in employment. But actual war isn't needed to bring about that
economic renewal. What is needed is any shared goal that requires
a similar commitment of funds and energy on the part of the
government and the people of a country.

If that national will can be focussed on infrastructure
refurbishing, modernization and expansion, the effect can be
similar to the economic growth that the US saw as a result of
World War II, and has tried to repeat with her various adventures
ever since.

With that amount of money spread around the country, millions
of unemployed will be able to find jobs directly related to the
infrastructure work and millions more will find employment in the
industries and businesses that spring up to help them spend their
newly earned money.

Once those enormous sums of money are in circulation,
businesses and therefore employment become self-perpetuating. The
effect of such an influx of capital is similar to kick-starting a
motorcycle; it takes that sharp input, it may need more than a
single attempt, but once it catches, the engine takes over.

Infrastructure work is particularly well suited to being a
national economic kick-start. Because of its very nature, the
work that is done and therefore the economic benefits will be
distributed throughout the country; although the contract will
largely be executed and therefore paid in Jakarta, the wages
themselves will be paid to the workers wherever the work is being
done. And that means money will be spent not only in the nation's
capital but in villages from one end of the archipelago to the
other.

In the wake of the devastation caused by the Christmas
Tsunami, infrastructure reclamation will have a special urgency
in some parts of the country.

We have a chance here to turn this calamity into an
opportunity. President Susilo has already ordered a review and
reorganization of the National Coordinating Agency for Relief and
Refugees (Bakornas PBP); he has seen problems and has moved to
address them.

That sends a signal to the world that the old complacency and
refusal to acknowledge internal problems are things of the past.
If we can send similar signals with our transparent, ethical and
efficient expenditure of aid money and our own funds allocated to
infrastructure rebuilding, we might well be taking a big step
towards turning Indonesia around.

If anything comes out Monday and Tuesday's summit on the
infrastructure, let us hope that it is a commitment to spending
those vast sums of money in ways that will show the world that
Indonesia has a right to be considered among the mature
democratic nations of the world and is on her way to economic
self-sufficiency. If Indonesia can come out of the devastation
with a renewed sense of purpose and a commitment to the future
development of this country, the heartbreaking losses we have
suffered as a result of the tsunami will be somewhat mitigated.

The writer, social and political commentator, can be reached
at ttpguntensperger@hotmail.com