Observer: Budget Efficiency In Infrastructure Sector Potentially Increase Accident Risk

Illustration. (Photo: Doc. Antara)

Public Policy Observer Agus Pambagio stated that the budget efficiency carried out in the infrastructure sector has the potential to increase the risk of accidents, considering that there will be facilities that are not well maintained.

According to Agus Pambagio, in Jakarta, Thursday, February 20, cutting the infrastructure budget of up to IDR 60.46 trillion had a direct impact on ongoing projects. In addition, supporting facilities such as dams, toll roads, and other buildings financed by the state are not well maintained.

"There will be more damage and impacts that will be more terrible. For example, the breakdown of the dam, damaged roads, thereby increasing accident victims," he said, quoted by Antara.

In addition, he ensures that the budget cuts also directly reduce employment, and companies engaged in the infrastructure sector have the potential to terminate employment (PHK).

He also conveyed that other economic impacts caused by this efficiency have the potential to cause inflation, because distribution costs are increasingly expensive.

"What is clear is that the cost will be more expensive," he said again.

Previously, the Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal stated that the budget efficiency carried out in the infrastructure sector had the potential to slow down the national economy.

This is because the budget cuts at the Ministry of Public Works (PU) which amounted to IDR 60.46 trillion will have a direct impact on employment, especially for BUMN works and companies that take part in national infrastructure projects.

Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti stated that the government's budget cuts were implemented 'selective logging', and it was seen that the efficiency carried out was allocated to other programs.

In fact, according to him, if the government wants to relocate the budget, the funds diverted should be used to encourage improving the quality of human resources, spur investment, and encourage exports.

"If it is not reviewed, the economy will be more sluggish," said Agus Pambagio.