Bambang speaking at Deloitte Indonesia Infrastructure CEO Forum 2017 here on Thursday, said in 2012, around 50 percent of the country's population lived in urban areas and the percentage is expected to continue to rise to reach more than 70 percent in 2030.
"It is something that we could not avoid. Therefore, rather than debating over how to curb urbanization, we better face the process as urbanization is also a source of economic growth," he said.
He said one sector most potential problems in urban areas is public transportation that need infrastructure .
"There are 87 million motorcycles jamming the streets because of limited public transport facility," he said.
Public transportation in urban areas needs to be developed. Railway transport with elevated track is more recommendable than buses as it could reduce the traffic jams.
Unfortunately construction of the public transport infrastructure projects still uses limited fund from the state budget. The government, therefore, began to adopt Transit Oriented Development (TOD) to increase the role of the private sector.
"TOD is good not only for transport access but it would make cities sustainable as center of activities in urban area could spread not centered as it is now causing traffic jams," he said.
He said Public Private Partnership (PPP) combined with TOD would be a solution to problem in urban infrastructure finance.
"Urban infrastructure like this would open a highly profitable investment in the future in Indonesia after investment in the mining, agriculture and service sectors," he said. (*)
Editor: Vicha Faradika