Tugas 3 Bahasa Inggris

Nama : Mega Wijayanti

NIM : 044224437
Prodi : Manajemen
UPBJJ : Banjarmasin

Please choose one of the topics below. Then, write an essay consisting of 3
paragraph. Elaborate your own opinion with the references related to the topic
that you choose.

1. Infrastructure is the basic facilities and system serving a country, region, or

community. What will happen to a country’s economy if there is no sufficient
infrastructure (i.e. damage road, less health facilities, etc) in that country?

Ask permission to answer the task.

When the state of infrastructure in a country is weak, it means that the

country's economy is running in a very inefficient way. Very high logistics costs,
leading to companies and businesses that lack competitiveness (due to high
business costs). not to mention the emergence of social injustice, for example, it
is difficult for some residents to visit health facilities, or it is difficult for children
to go to school because the journey is too difficult or expensive.

Inadequate infrastructure also affects the attractiveness of the

investment climate in Indonesia. Foreign investors are wary of investing in, for
example, a manufacturing facility in Indonesia if the power supply is uncertain or
transportation costs are very high. In fact, Indonesia is often plagued by power
outages, even though the country is declared to have an abundance of energy
resources. Cases of power outages are quite common in areas other than Java
and Bali

The Indonesian government is aware of the importance of improving

infrastructure conditions so that the investment and business climate becomes
more attractive. Currently, there are not enough roads, seaports, airports and
bridges in Indonesia (Southeast Asia's largest economy), while - not infrequently
- the quality of existing infrastructure is inadequate. However, developing
Indonesia's infrastructure (both hard and soft infrastructure) is not an easy task.
The archipelago consists of about 17,000 islands (although many of these islands
are uninhabited and show no economic activity). Being an archipelago is more
complex (and more expensive) to improve connectivity and implies there is a
need to focus on maritime infrastructure.

Perhaps the biggest problem - related to infrastructure development in

Indonesia - is finding all the necessary funds. Based on the 2015-2019 National
Medium-Term Development Plan (RPJMN), a total of IDR 4,796 trillion is
required to meet the infrastructure development targets (set by the government)
in 2019. However, the central and regional governments can only contribute 41
percent for financing, while companies state-owned companies (BUMN) can only
contribute up to 22 percent. This means that 37 percent of the required funds
(around IDR 1,752 trillion) must come from the private sector.

However, the problem is that the private sector - in general - is not very
keen to commit to long-term, capital-intensive projects. Especially if the
investment climate is not optimal in the destination country. As explained above,
in Indonesia infrastructure projects can be delayed for various years (or
canceled altogether) due to land acquisition issues or other bureaucratic hurdles.
So, it is possible that before the project's groundbreaking there will be a change
of government with a new president who does not prioritize the infrastructure
project. Given the relatively weak legal and regulatory certainty in Indonesia, the
private sector tends to be very wary of investing in long-term, capital-intensive
projects (and hence President Widodo's decision to use state-owned companies
to finance and build large parts of infrastructure projects). in Indonesia is a wise
decision).

Thank You.