(Antara/Ismar Patrizki)

Indonesia aims to propel infrastructure development to enhance its competitiveness and engagement in the ASEAN Economic Community (AEC) that is scheduled to begin this year.

'€œInfrastructure is still our biggest problem, particularly in terms of domestic connectivity,'€ ASEAN Cooperation director general for international trade cooperation Donna Gultom said on Wednesday.

Insufficient infrastructure for supporting connectivity between islands has hampered Indonesia'€™s economic growth. Developments have been centered in Java, creating economic disparity, and business players seem hardly interested in investing in less-developed areas, leading to decreased foreign direct investment (FDI).

In order to be competitive in the AEC, Donna asserted that infrastructure development should be enhanced to strengthen domestic connectivity, which in the long run would have a multiplier effect on the economy, such as further investment, smoother distribution channels and ultimately increased economic growth.

'€œOur economy is growing, but if we are aiming for 7 to 8 percent growth, we need to ['€¦] develop infrastructure,'€ Donna told thejakartapost.com.

According to Donna, if President Joko '€œJokowi'€ Widodo could fulfil his pledge to tackle shortages in public infrastructure, Indonesia could strengthen its domestic connectivity in just five years.

In addition, Donna said that the government aimed to update ports infrastructure to enable larger vessels such as containerships to deliver directly to Indonesia. This is expected to boost local business players'€™ confidence in the value of exporting goods, while also reducing Indonesia'€™s dependence on Singaporean ports for trade.

'€œJokowi has earmarked 24 seaports to be developed further,'€ said Donna.(+)

Popular

PDI-P will likely be part of opposition: Ganjar

Indonesia one step from Olympics after beating South Korea

Bahlil leads task force to boost sugar, bioethanol production in Papua