REPUBLIKA.CO.ID, JAKARTA - Indonesian government allocates 20 billion USD or around 190 trillion IDR in the 2013 state budget for infrastructure development to narrow the economic gap. The statement came from President Susilo Bambang Yudhoyono (SBY) on Tuesday in his opening speech at Indonesia International Infrastructure Conference and Exhibition 2012 in Jakarta.

"The fund will be focused on the energy and transportation sectors," SBY said.

The 20 billion USD budget will be used to extend the length of national roads by 4,278 kilometers, build 500 kilometers of new roads, 380 kilometers of railway, and also 15 new airports. 

SBY explained that infrastructure was an important component to reach sustainable growth and therefore government had launched the Masterplan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). Through this masterplan, in which the investment value reach 490 trillion IDR, at least 135 infrastructure development and real sector projects have been started. The projects are not only centered in Java and Sumatra, but also in other regions.

Presidential staff for economy, Firmanzah, mentioned the 193.8 trillion IDR in the draft of 2013 state budget was added with 24 trillion IDR. The money will be spent for infrastructure development. "It is higher than the 2012 revised budget, which is on 168.7 trillion IDR," he said.

To anticipate any obstacles in infrastructure development, government issues Presidential Regulation No. 71/2012 on Land Procurement for Public Facilities. The new regulation will be supported by Presidential Regulation No.70 to accelerate the service and goods procurement started next year.

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