Commuters wait to get on trains in Jakarta, Indonesia, on August 18 (Photo: AFP/VNA) Jakarta (VNA) – An Indonesian minister has affirmed that the country’s government is strongly committed to developing land transportation infrastructure nationwide to support economic growth.
At a webinar on August 19, Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan cited results of a study as showing that one-percent hike in the construction of roads will raise economic growth by 8.8 percent, the Antara news agency reported.
He noted the government has deemed it necessary to develop road infrastructure through public and private investment under a government and business entity partnership scheme.
The minister also believed that Indonesia might be able to save nearly 100 trillion Rp (6.7 billion USD) annually by developing a train-based mass transportation system. Of the figure, 40 trillion Rp will be saved from the operating costs of motor vehicles and 60 trillion Rp from the travel time.
The value is equivalent to 4 percent of the regional gross domestic product of Jabodetabek, which is the Greater Jakarta areas covering Jakarta, Bogor, Depok, Tangerang, and Bekasi, according to the official.
The use of the mass transportation means will also result in a significant reduction in traffic congestion, Pandjaitan said.
Road connectivity, including through toll roads, serves as an essential component to drive economic transformation to the manufacturing and service sectors. Therefore, Indonesia will boost developing a land transportation system across the country, from toll roads in Sulawesi and Bali to road lines in Kalimantan, Sulawesi and other localities, he added./.
VNA
