Hatta Rajasa Says Trans Sumatra Toll Road Will Contribute To Increase GDP By IDR 1,200 Trillion: Generates A Powerful Multiplier Effect
JAKARTA - Former Coordinating Minister for Economic Affairs, Hatta Rajasa, assessed that the Trans Sumatra Toll Road is expected to create a multiplier effect that contributes to an increase in GDP reaching IDR 900-IDR 1,200 trillion.
Hatta said theoretically the existence of the Trans Sumatra Toll Road is expected to increase economic activity in Sumatra.
"There will be a multiplier effect so that it can be estimated that the contribution to the increase in GDP reaches IDR 900-1,200 trillion, assuming an increase in investment, both infrastructure and other investments in Sumatra's 8 main commodities", he said in the HK Academy webinar, Thursday 9 September.
Thus, he continued, the connectivity of the Trans Sumatra Toll Road will cause a tremendous multiplier effect.
"It can be said that the island of Sumatra that had just been built can stretch, this can run with the existence of these Trans Sumatra toll roads", said Hatta Rajasa.
In his presentation, the Coordinating Minister for the Economy for the 2009-2014 period said that the presence of the Trans Sumatra Toll Road increased labor absorption during the construction period and after construction.
In addition, this toll road also saves time which can be given at least 50 to 55 hours.
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With the existence of the Trans Sumatra toll road which stretches from Lampung to Aceh along 2,800 km, it will have an impact on local governments and the private sector (investors) will build feeders to toll roads to explore the regional potential. Thus investment will increase.
The second impact is the establishment of logistics nodes that will facilitate supply and reduce logistics costs. Then the third impact is a significant increase in regional GDP due to the multiplier effect and the subsequent impact of encouraging tourist visits.
The final impact of the Trans Sumatra Toll Road will be the growth of new economic areas and new, more modern settlement centers.