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Jokowi's air transport development spurs local economy

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Jakarta Globe - September 27, 2024

Alfida Rizky Febrianna, Jakarta – The small cities and villages of archipelagic Indonesia are also enjoying the economic benefits from the massive air transport infrastructure development under President Joko "Jokowi" Widodo's leadership, according to an expert.

Telisa Aulia Falianty, an economist from University of Indonesia, said that the Jokowi era air transport development had spurred a 10 percent growth to local economies.

"If estimated, on average throughout Indonesia, the air connectivity can give a 5-10 percent year-on-year growth to the local economy," Telisa said Thursday.

The development has also benefited communities in Indonesia's remote areas, according to Telisa. The geographical circumstances of these remote areas have made it inaccessible by land or sea transport. Air connectivity has enabled people to access basic necessities.

"The easier access has helped brought down the price of the staple goods, particularly in the remote areas. Jokowi has shown that he could maintain the price of basic necessities during his era, particularly in remote areas," Telisa said.

Having flights to Indonesia's outermost regions also creates a new source of income for the local communities through the opening of businesses from tourism activities. The development of air infrastructure can also help reduce development inequality as Indonesia seeks growth that goes beyond the Java Island. The new economic opportunities from air connectivity can also give a boost to the central and sub-national governments' revenues, according to Telisa.

"We have seen the launch of the airport in Nabire. Having such developments will surely grow Papuan economy. This is just one of the many examples that [air transport infrastructure development] brings economic benefits," Telisa said.

Source: https://jakartaglobe.id/business/jokowis-air-transport-development-spurs-local-econom

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