New Infrastructure Helps to Stem Traffic Flow and Keep Inflation Down During Idul Fitri
Jakarta. Recent government efforts to boost infrastructure development across the archipelago have resulted in fewer traffic jams during this year's Idul Fitri exodus, or mudik, and stable commodity prices during Ramadan, a business organizer said on Friday (30/06).
"Unlike the tremendous traffic congestion and high accident rates in previous years, transportation and communications were smooth this year," said Andi Rukman Karumpa, secretary general of the Indonesian Builders Association (Gapensi).
The government unveiled several toll road projects this year to stem the flow of traffic during the holiday exodus season.
President Joko "Jokowi" Widodo has made infrastructure one of his top policy priorities, aiming to construct as many as 15 new airports, 24 seaports, 2,650 kilometers of national roads, 1,000 km of toll roads, 3,258 km of railways and 60 ferry ports by 2019.
The increased accessibility brought on by enhanced infrastructure has also helped keep prices of staple foods down during Ramadan, the Islamic holy month of fasting.
"The prices of basic needs are also stable [...] Whereever there are toll roads for land transport, adequate seaport or airports, inflation in the area can be controlled," Andi said.
Economists expect inflation to reach 4.29 percent in June on an annual basis, a moderate drop from 4.33 percent recorded in May and well within the central bank's target of 3-5 percent inflation for the year.
Gapensi, which has 42,102 members across the country, remains confident that the construction sector will pick up during the remainder of the year, despite a slight setback in the first quarter, Andi said.
That sector expanded only 6.26 percent from January-March compared to the same period a year earlier, falling behind the communications sector, which grew 9.01 percent, and the warehouse, healthcare, agriculture and service sectors, which grew at 7.65 percent, 7.13 percent, 7.12 percent and 6.8 percent, respectively.
"There are a lot of major infrastructure projects that are expected to start soon, including airports, railway infrastructure, ports, toll roads, and many more," Andi said.
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