Infrastructure Development Raises the Economy of the Yapen Papuan Community

The construction of a number of infrastructure projects has boosted the economy of the people of Eastern Indonesia, including the Yapen Islands Regency, Papua.
The geographical factor of the Yapen Islands Regency which consists of a group of islands is very dependent on infrastructure for the smooth mobility of the population to goods and services.

The government also consistently presents new infrastructure for the local community, starting from the construction of roads, bridges, and so on. One of them is the Sumboy River Bridge which was inaugurated on Wednesday (19/5). The 80 meter long bridge connects two districts, namely Kosiwo District and West Yapen District.

The presence of the bridge is very helpful for residents' activities and boosts the economy of the local community. The reason is, prior to the construction of the Sumboy River Bridge, residents of the two districts were forced to cross the river and fight the strong currents to get to the city area.

Now, through the Sumboy River Bridge, people's mobility to goods and services is easier.

Regional connectivity with the center of government, economy, education, and health is also increasingly affordable because the distance is getting shorter. The economic impact is also starting to be felt because residents can save on vehicle operating costs through the Sumboy River Bridge.

Moreover, based on data from the Central Statistics Agency (BPS) of Yapen Islands Regency, the coastal area's economy is supported by the agriculture, forestry, fisheries, and trade sectors which contribute more than 15 percent to the Gross Regional Domestic Product (GRDP) every year.

No doubt, the community desperately needs a well-established infrastructure to support economic activities based on agriculture, forestry, fisheries, and trade.

The Yapen Islands Regency BPS noted that the region's economic growth experienced a contraction of minus 4.45 percent throughout 2020 due to the Covid-19 pandemic. In fact, the district with a population of 112,000 people was able to grow above 4 percent in the 2016-2019 period.

In detail, the economy grew 5.41 percent in 2016, then 4.64 percent in 2017. In 2018, the Yapen Islands Regency's economic growth was recorded at 4.55 percent and 4.73 percent in 2019.

Therefore, infrastructure development is expected to be able to revive the economy of the islands in the Cendrawasih Bay area. This can be realized by increasing the mobility of people, goods and services through the presence of various infrastructures built by the government.

The Regent of Yapen Islands Regency, Tonny Tesar, said that the source of funding for the bridge construction came from a regional loan facility by PT SMI. The regional loan facility is very beneficial not only for local governments, but also for the community because they can immediately feel the benefits of the infrastructure built.

"We are grateful that we can complete this bridge with a contract amount of Rp. 20.9 billion. We must account for this regional loan of up to Rp. 1. We cannot use this loan for activities other than what we have planned," he said in a statement. officially uploaded through the official website of the Yapen Islands Regency.

Financing from PT SMI

Infrastructure development in Yapen Islands Regency cannot be separated from the role of PT Sarana Multi Infrastruktur (Persero) or PT SMI. As Special Mission Vehicles (SMV) under the coordination of the Ministry of Finance, PT SMI has a strategic role in accelerating national infrastructure development.

Support by PT SMI is manifested in the form of financing the construction of the Sumboy River Bridge with a total project value of up to Rp 20.9 billion. The financing was provided in the form of a regional loan facility by PT SMI to the Yapen Islands Regency Government.

In addition to the Sumboy River Bridge, the Yapen Islands Regency Government also uses PT SMI's regional loan facility for other development needs. One of them is the construction of a bridge worth Rp 14.4 billion in the eastern region of the Yapen Islands Regency, namely the 40-meter Repapeip River Bridge.

"PT SMI hopes that the support provided in order to encourage equitable development in the Yapen Islands Regency can be more integrated, so that it can encourage the movement of the local community's economy," said PT SMI in an official statement.

The advantages of financing and investment products from PT SMI are that they offer long-term tenors, innovative financing products, and flexible financing schemes. PT SMI also ensures that financing for these national infrastructure projects has a large multiplier effect so that the benefits can be felt by the community optimally, both economically and socially.

SOURCE: https://www.cnnindonesia.com/economy/20211105071453-83-716893/pembinaan-infraktur-angkat-economy-community-yapen-papua