The Politics of Widodo’s Prioritisation of Accelerated Infrastructure Construction

Abstract

This prioritisation of infrastructure projects is a continuation, repackaged, of Yudhoyono’s Masterplan for the Acceleration and Expansion of Indonesia's Economic Development (MPE3I) but boosted with a major increase in government funding for infrastructure. President Widodo has been able to secure unanimous parliamentary support for this economic prioritisation and the concomitant changes in budget. The increase in government funding for infrastructure has been enabled by the ending of fuel price subsidies, the imposition of new government charges and the mobilisation of funds associated with insurance and health programs. Most of these decisions are reducing the disposable income of the lower middle class and lower income strata.