Infrastructure Development in Indonesia: Do Regulation Matter for Infrastructure Performance?

       The question of this topic is “Do Regulation Matter for Infrastructure Performance in Indonesia?” After economic crisis in 1998, Indonesian Government since 2005 seriously invites the private sector to participate in development of the public infrastructure by implementing the concept of Public Private Partnership (PPP).  Many regulations have issued to support PPP since, but in the implementing of such regulations so many obstacles faced by the government and private sector at the beginning of perform the development of infrastructure such as the problem of land acquisition for infrastructure development. The answer of such question before mentioned is, it needs the better quality of regulations, and the better quality of regulations needs the best quality law-makers (human resources) which have many experiences as law-makers with strong academic background.

        On 7^th August 2012, Indonesian Government has issued Presidential Decree No. 71 Year 2012 concerning to Land Acquisition for Public Interest, in order to implement Law No. 2 Year 2012 as to Land Acquisition for Public Interest. This new regulations withdrew the previous regulations Presidential Decree No. 36/ 2005 and its amendment Presidential Decree No. 65/ 2006.

        Such Presidential Decree gives the time certainty and assurance regarding to land acquisition process and procedure. Under the new regulations, the duration of all process and procedure of land acquisition is about 583 days as máximum days. This new regulations is to response the constraints and the obstacles of the implementation of Indonesian Government program in order to accelerate and to extent Indonesian economic development (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia or MP3EI), ofwhich there are many infrastructure project in some region areas. The constraints and the obstacles of such Government Masterplan are about regulations concerning to space arrangement and land acquisition (http://www.pikiran-rakyat.com/node/201194 dated 10th September 2012).

       As well as, in order to response the constraints and the obstacles of the implementation of Indonesian Government program in order to accelerate and to extent Indonesian economic development (MP3EI), Indonesian Government has issued Presidential Decree No. 56 Year 2011 concerning to the amendment of Presidential Decree No. 67 Year 2005 as to Public Private Partnership for Infrastructure Procurement.

       Regarding to these facts, government takes about 5 years to review the previous regulations in order to give response concerning to the implementation of previous regulations. Its means that its about 5 years, the government face the constraints and the obstacles for infrastructure development in Indonesia. From these facts, however, we have to learn from success countries how to issue and set up the better quality of regulations specifically for infrastructure development. The better quality of regulations needs the best quality law-makers (human resources) which have many experiences as law-makers with strong academic background.

       As conclusion, one country could not running well as stated in its Constitution as a philosophical idea to give prosperous and wealthy (wellfare state) to their peoples if not supported by the better quality of regulations.

Dr. Iwan E. Joesoef, SH., Sp.N., M.Kn.