In an effort to achieve higher growth and equitable growth, the Jokowi government places infrastructure as the main agenda and allocates a large budget to boost infrastructure development. Although in theory infrastructure can accelerate economic activity and increase growth, reality does not yet show this. While the 2017 infrastructure budget allocation increased by 177% from the 2014 budget, economic growth in 2017 only increased slightly. The job creation that is touted as a positive impact arising from infrastructure and construction spending is also yet to be seen. This issue will be discussed in detail in a special section in this analysis (see “Infrastructure and Growth Paradoxes” on page 10).

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