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Resilient Infrastructure in Indonesia: A Way Forward

Author

Listed:
  • Teuku Riefky

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Faizal Rahmanto Moeis

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Yusuf Sofiyandi

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Muhammad Adriansyah

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Anas Izzuddin

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Aqilah Farhani

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Sendy Jasmine

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

Indonesia is in the middle of its long-term development challenge to escape the ‘middle-income trap’. As often as developing countries face the same challenge, one common strategy to be implemented by the Government of Indonesia (GoI) is to develop a massive infrastructure plan across the country. Despite the ambitious development and planning of infrastructure in Indonesia, Indonesia’s current state of infrastructure is under threat due to natural disasters. Natural disasters cause damage to infrastructure, which affects the infrastructure’s ability to provide benefits for the society and economy. The geographical position of Indonesia and climate-related factors have raised the exposure of environmental risks and climate change to Indonesia’s infrastructure. In general, the current infrastructure conditions in Indonesia are simply not resilient enough to endure future disaster and climate change risks. Therefore, to mitigate and adapt to these risks, Indonesia should build resilient infrastructures, which are able to withstand damage or disruptions, but if affected, can be readily and cost-effectively restored (Scalingi, 2007). Indonesia has created several national-level development plans for resilient infrastructure development, such as the 2014 RAN-API, 2012 RAN-MAPI, and the 2020–2024 RPJMN that complement each other, emphasize resilient infrastructure to reduce losses due to disasters. Regionally, several districts have their own climate change adaption disaster risk reduction plan, such as Makassar City and Kupang City, that accommodate local disaster and climate risks. However, not all districts have designed their climate change adaptation disaster risk reduction plan as it is not mandatory. Moreover, the GoI has created several regulations regarding resilient infrastructure, such as Green Buildings, infrastructure in tsunami-prone areas, and building technical requirements. These plans and regulations have also been supported by several actors, both from the public and private sector.

Suggested Citation

  • Teuku Riefky & Faizal Rahmanto Moeis & Yusuf Sofiyandi & Muhammad Adriansyah & Anas Izzuddin & Aqilah Farhani & Sendy Jasmine, 2021. "Resilient Infrastructure in Indonesia: A Way Forward," LPEM FEBUI Working Papers 202164, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.
    • Handle: RePEc:lpe:wpaper:202164
    as

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    File URL: https://lpem.org/repec/lpe/papers/WP202164.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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