Central Government Role in Road Infrastructure Development and Economic Growth in The Form of Future Study: The Case of Indonesia
Central Government Role in Road Infrastructure Development and Economic Growth in The Form of Future Study: The Case of Indonesia
Central Government Role in Road Infrastructure Development and Economic Growth in The Form of Future Study: The Case of Indonesia
Abstract
Road infrastructure development in a country has been considered an important predictor of economic develop-
ment and prosperity. Hence applying a systematic analysis approach, this study aims to project the future role of the
central government in developing road infrastructure and its significance in the country’s economic growth. The main
data sources were the literature review and expert opinions in the form of self-administrative surveys and interviews.
Besides, the Cross-impact Direct Influence (CDI) matrix was applied to formulate the questionnaire. For the data
analysis purpose, MICMAC analysis and Scenario Wizard software were used. The MICMAC analysis results revealed the
dominant role of 9 important/key variables in developing the Indonesian road infrastructure. Simultaneously 24 posi-
tive states of the important variables what identified via the Scenario-Wizard Method. Findings also depicted stronger
consistency among the four scenarios. Whereas Scenario 1 showed the most ideal 9 key features related to Indonesia’s
road infrastructure developments with a high intensity of concentrating the efforts on planning road infrastructure
development in big cities and use of smart and modern technology. Moreover, presenting a group of constructs for
developing road infrastructure and resultant economic growth in the country, the current study adds value to the
existing literature.
Keywords Scenario-based planning, Future study, Road infrastructure, Economy growth, Central government role
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Nawir et al. City, Territory and Architecture (2023) 10:12 Page 2 of 12
the overall region’s economic growth is affected (Mejía road infrastructure development in Indonesia (Mantoro
et al. 2020). For instance, while constructing the toll 2021), which the current study tried to explore in detail
roads, China spurred its economy, bringing valuable using the scenario-based planning methodology.
advances in remote areas and leveling the development Moreover, the current study utilizes a scenario-based
system all over the country by exploiting the economic planning methodology to project the central govern-
capacity (Meijer et al. 2018). Whereas other than climate ment’s role in road infrastructure development. It is a
changes and toll roads, researchers also highlighted the strategic planning method that helps managers and
need to explore other factors influencing road infra- decision-makers in projecting the future and planning
structure development, especially in emerging countries development strategies (Mai and Smith 2018; Mansoor,
(Abdullah et al. 2021; Mhlanga 2021), which the current Awan, & Paracha, 2021). Simultaneously, scenario-
study aims to explore. based planning operates on two basic principles. In
In addition, sound road infrastructure effectively accordance with the first principle, the organizations’
reduced traffic congestion and social disparities in vari- external environment and internal characteristics con-
ous big cities, including Europe. Hence, road infrastruc- stitute the system. At the same time, the second princi-
ture development is important for economic prosperity ple deals with the several features of a particular system
(Veizaj, Islami, and Maliqari 2021). Research also high- and presents multiple future scenarios and possibili-
lights the significance of the transportation system at ties to constitute a strategic planning process (Ehsan
the national, local, and regional levels for the economic et al. 2019). Moreover, it is based on two phases, (i) to
development of a nation (Khanani et al. 2021). The cen- develop and apply stimulations to check about future
tral government can assess the road infrastructure possibilities and (ii) to assess and apply the manage-
development benefits to attain the required results of rial and decision-making abilities to assess all projected
economic growth in the country (Liu et al. 2021). So, the future scenarios (Norton et al. 2019). Besides, research-
significance of road infrastructure development in eco- ers of infrastructure development applied future plan-
nomic growth is that it efficiently and effectively facili- ning as a systematic method to determine simulations
tates transportation systems in the country (Mohamad for complex adaptive modeling of “road infrastructure
et al., 2021). Besides, multiple factors such as resources, resilience to sea-level rise” (Batouli & Mostafavi 2018)
economic conditions, financing facilities, infrastructure and electronic vehicle charging (Márquez-Fernández
development policies, population growth rate, etc., can et al. 2021).
be considered while developing the road infrastructure However, the application of scenario-based plan-
in a country (Horvat et al. 2021; Koval et al. 2021; Liu ning to determine the role of the central government
et al. 2021). Additionally, strategic planning at the central in road infrastructure development for the country’s
government level is important for developing the overall economic growth has not been previously explored.
transportation system to enhance the living standards Besides, researchers asserted the need to explore the fac-
of a community linked with economic development (Du tors impacting road infrastructure development and the
et al. 2021; Mansoor & Paul, 2022). significance of strategic planning by the central govern-
Simultaneously, although various attempts have been ment, particularly in the Indonesian context (Setiawan
made to enhance the transportation infrastructure, in et al. 2022). Hence, the current study aims to apply the
Indonesia, the transportation infrastructure is still inad- scenario-based future planning methodology to deter-
equate to meet the requirements of an emerging economy mine the key drivers and the extent to which the central
(Mantoro 2021). Furthermore, low economic growth, government can play its role in road infrastructure devel-
hyperinflation, and lack of sustainable national income opment and economic growth of the country, particularly
are among the main reasons for the less developed econ- in the context of Indonesia. Thus, the current study aims
omy in Indonesia (Istanti 2021). There are many road to answer the following important questions;
congestion issues in Indonesian cities, along with the
low national transport network scale (Zadry et al. 2022). • What key factors and driving forces can be used to
Also, the number of vehicles on the roads is continuously develop and sustain the road infrastructure in Indo-
increasing. The country’s development of sound road nesia?
infrastructure is further projected to lead the national sus- • How road infrastructure development influences the
tainable development. Hence, infrastructure building is economic growth of the country.
very important based on Indonesia’s abundance of natu- • Which scenario-based strategic planning would be
ral reserves (Hardjosoekarto and Lawang 2021; Nugroho the best fit with large-and small-scale central govern-
et al. 2021). Researchers also highlighted a dire need to ment policies for infrastructure development to sup-
understand the factors influencing the transportation port the economy of Indonesia?
Nawir et al. City, Territory and Architecture (2023) 10:12 Page 3 of 12
Neuter/clustered constructs These variables lie in the ii. Presenting a set of alternative variants based on
centers and tend to join any group of other constructs. descriptors’ possible states, i.e.,
Hence, systems cannot make certain projections or deci- a. “X1 {xa, xb, xc} …………….……2
sions about such constructs. b. X2 {x, xy, xz} ………………….…3
c. X3 {xi, xj} Xn {× 1 … xn}”………0.4
iii. Presentation of + 3 strongly promoting influence to
Building scenarios applying cross‑impact balance 3 strongly restricting influence.
“Cross-impact Balance (CIB)” is a modern analysis
applied to multidisciplinary topics and qualitative sys-
tems. CI B’s one of the typical application fields is sce- Sampling procedure
nario wizard. The building and construction of scenarios This study applied MICMAC software and conducted a
often require the progress of many different fields, i.e., cross-impact analysis in Scenario Wizard to extract the
technological, social, economic, political, etc. (Weimer- key factors impacting the development of the transpor-
Jehle et al. 2020). Simultaneously, to develop scenarios, tation infrastructure in Indonesia. A six-phase process
the know-how of various combinations of satisfactory, is followed in the structure analysis method to con-
neutral, and unfavorable prediction variance is important struct scenarios, including problem analysis, variables
to know about their interrelations. Besides, a peer inter- definition, analysis of the relationships, chart analysis,
action system approach has been utilized in CIB analysis. identification of key constructs, and all probable future
In the beginning, important/key factors are identified, scenarios to develop a system(Chen 2020). This study was
which are conceptualized as “descriptors” assessed via started in July 2021 and was completed in February 2022.
applying the MICMAC technique as understanding the Using a purposive sample (non-probability) methodol-
qualitative system characterization of the descriptors in ogy, a group of experts exhibiting the area of knowledge
the system is important (Jasiulewicz-Kaczmarek et al. was selected (Devers and Frankel 2000). In accordance
2021). Moreover, Fig. 2 depicts the association between with the researchers, while conducting future projection
various descriptors. It shows that all the network ele- studies applying scenario-based analysis, the number
ments are completely interconnected with the reciprocal of experts can vary from 10 to 100. They can further be
one-sided relationship. Besides, an internally consist- divided into groups of 2 to 3 (Chen 2020; Jasiulewicz-
ent way keeps the balance among the web of influences Kaczmarek et al. 2021). Thus, based on these guidelines,
where a system follows a configuration. we approached 40 management experts, academicians,
The following steps are involved in scenario building administrators, and professionals. However, 29 agreed
via the CIB process; to participate in the study. Therefore, we requested them
to fill out a self-administered questionnaire designed in
i. Use of the MICMAC technique to identify the key a cross-impact analysis matrix. In phase II of the current
constructs, i.e., X1, X2….. Xn. study, the items of the self-administrative questionnaires
were identified.
Moreover, various variables were identified based on
the experts’ highly knowledgeable views regarding the
transportation sector. As the structure analysis of the
current study was based on experts’ opinions, we tried
to highlight the experts who were rich in transporta-
tion infrastructure and economic development knowl-
edge. Moreover, structural analysis was utilized based on
experts’ opinions, and various indicators of the variables
were highlighted in the context transportation system of
Indonesia. Based on the information collected from the
experts, a list of 24 variables was identified and final-
ized, which were later added to the self-administrative
questionnaire. It was also made sure that all the experts
easily understood the conceptualization of each con-
struct. Moreover, these selected 24 variables belong to
six broader fields as macro indicators that greatly influ-
Fig. 2 A simple CIB networks
ence Indonesian transportation infrastructure. A detailed
Nawir et al. City, Territory and Architecture (2023) 10:12 Page 5 of 12
description of all five variables and their indicators has Table 2 Matrix of direct influence MDI
been given in Table 1. Indicators Values
clustered, output, and excluded variables. As shown in head coordination are considered the output constructs.
Table 3, community participation, development of action Simultaneously, establishing the commission, diesel, and
plans, transportation management, the master plan for filter regulations and smart growth with innovative pro-
road infrastructure development, safety and security in cedures were found to be the least impactful for Indone-
the transportation system, investments in technology sian road infrastructure development.
and innovative practices, maintaining a comprehensive
transportation database, and addressing transportation/ Consistent scenarios building via applying CIB
land-use conflicts have been identified as the key con- Once the key variables to develop the Indonesian road
structs playing a vital role in Indonesian road infrastruc- infrastructure using cross-impact analysis were identi-
ture development. Likewise, constructs like public and fied, we assessed the significance of all the factors in
stakeholder involvement, budget allocations, investments different combinations linked with the system in Sce-
in research and development, and multidimensional nario Wizard software. Besides a coded rule in the CIB
thinking are considered input variables are reflecting method boss employed to identify the key variables. We
the importance of utilizing these key factors to enhance found nine key variables impacting the road infrastruc-
the development of the Indonesian road infrastructure. ture development in Indonesia. In the next step, expert
In addition, considering state vs. local rules, strengthen- panel members were approached to analyze the descrip-
ing planning and modeling, improving connections, and tors, and a 24 × 24 matrix was formulated to evaluate the
continuous investments in the transportation sector have Indonesian road infrastructure development and any
been marked as clustered variables. At the same time, projected changes in any descriptor variables. Simulta-
the community’s carrying capacity, budget allocations, neously, forthcoming judgments, interactions, and asso-
attraction for tourists, protection trust fund reserves for ciations of the constructs and structured processes were
transportation, and continued transportation agency utilized to build scenarios. Qualitative variances were
Nawir et al. City, Territory and Architecture (2023) 10:12 Page 7 of 12
defined after compiling the key variables (descriptors) the community has been found to be an important fac-
list. This further reflects the characteristics of the key var- tor that facilitates road infrastructure development in a
iables reflecting various states to develop the Indonesian country and leads to economic growth and prosperity at
road infrastructure development. At the same time, these the societal and community levels.
states are considered “strategic drivers” in developing
the road infrastructure in the future at a national level, Discussion
and this can happen at any time in the system. Moreover, The current study applying the CIB identified four con-
Table 4 depicts the study descriptors and their variables, sistent scenarios. The findings presented the significance
categorizing the possible states of all the descriptors. of Scenario 1 as a driving scenario for the development of
In the next step, judgments were made regard- the Indonesian road infrastructure based on its influence
ing descriptor X’s state x’s impact on descriptor Y’s on the country’s economic development. In addition,
state y. This resulted in a “cross-impact matrix in Sce- all 9 key variables identified in this scenario-building
nario Wizard Software” with 9 important/key vari- research are very important and stable for the Indonesian
ables and 24 states impacting the Indonesian road road infrastructure development with a positive nature.
infrastructure development system. In the next step, Besides, scenario 1, with the most stable and influential
around 5,832 probable compounding scenarios (from states, includes D3 (concentrating the efforts on plan-
3 × 2x3 × 3x2 × 2x3 × 3x3x) were extracted out of all prob- ning road infrastructure development in big cities). It
able states. These scenarios we have loaded these in the revealed that when governments pay more attention to
scenario wizard. These further include four with stronger strategic planning for developing the road infrastructure
consistencies, 453 with weak, and 276 with nil consist- in the big cities, it can facilitate individual and business
encies. In addition, results revealed the high occurrence entities far smooth functioning with easy access to their
of four scenarios in the development of the road infra- final destinations. It further presents that road infrastruc-
structure in Indonesia in the future as a forecast to foster ture development is necessary, especially in large, more
economic growth in the country. Furthermore, various populated cities, to help people reach their destinations
categories were assigned to these four consistent scenar- on time and effectively perform their duties with the least
ios based on specific features, as shown in Table 5. distractions and unnecessary delays. These results can be
In addition, scenario 1, as shown in Table 5, reflected related to the previous studies, which presented the sig-
the ideal and desirable conditions and is named the “driv- nificance of road infrastructure development in large cit-
ing scenario.” Scenarios 2 and 3 reflected the intermedi- ies to drive economic prosperity in the country (Lin et al.
ate status with appropriate states. However, scenario 04 2021; Połom 2021).
was critical, reflecting undesirable status with zero pro- In scenario 1, the second most influential state was F1
jections of developing the Indonesian road infrastructure (Use of smart and modern technology). It is a modern
in the future. Simultaneously, the consistency values of era where people rely more on information and commu-
each possible state are presented in Table 6. nication technology to devise smart solutions to real-life
The results reflect the highest consistency value of the problems (Dalle et al. 2020; Mansoor 2021). Since road
master plan at the national level as a significant meas- infrastructure development is a big economic devel-
ure for road infrastructure development in Indonesia. opment in a nation, realizing modern technologies to
Further, results demonstrate the highest consistency of build roads and keeping this sustainability of the envi-
investment in technology and innovation practices and ronment is of significant importance. Previous research
maintenance of a comprehensive transport database to also reflects the depletion of resources, the use of mul-
develop the road infrastructure in Indonesia. Moreo- tiple resources for road infrastructure development, and
ver, results revealed the significance of safety and secu- its negative impact on environmental issues (Batouli and
rity in the transportation system not only facilitates the Mostafavi 2018; Schweikert et al. 2014). Hence, the gov-
local inhabitants to participate in the country’s economic ernment should pay attention to smart technologies to
growth but also attracts tourists. It is also the state’s build road infrastructure while preserving the resources
responsibility is equally important to develop the road for future developments.
infrastructure in the country that can further facilitate In addition to that, the third leading state that affects
prosperity based on economic growth. The development the development of road infrastructure in Indonesia was
of the action plan has also been found to be an impor- found to be G1 (Application of technological tools to
tant predictor of road infrastructure development in an keep track records of transportation modes and trans-
emerging nation. It further reflects that it is not neces- porters’ history). Keeping the significance of the previ-
sary to only plan about multiple things, but the execu- ous point, the results of the current study revealed that
tion is equally important. Finally, the participation of technological tools could also be applied to track records
Table 4 Possible states of descriptors
Nawir et al. City, Territory and Architecture
Descriptors Variables
A. Community participation A1. Participation and interest at the societal A2. societal efforts to extract mutual benefits A. No interest of communities in road infrastruc-
level from road infrastructure development in the ture development
country
B. Development of action plans B1. Long-term smart strategic planning B2. Plan the road infrastructure development B3. No strategic planning
(2023) 10:12
Table 5 More consistent scenarios for developing Indonesian attract tourists, which is a great source of earning for-
road infrastructure eign exchange (Hardjosoekarto and Lawang 2021). These
Scenario 1 Scenario 2 Scenario 3 Scenario 4 findings further depict that the country’s stronger in
formulating policies and regulating laws are more apt to
A2 A2 A3 A1 develop the road infrastructures to facilitate the public at
B2 B3 B1 B2 a large scale.
C1 C2 C2 C4 Besides, B2 (Plan the road infrastructure development
D3 D3 D3 D2 keeping the sustainability elements into consideration)
E2 E3 E3 E3 and C1 (Efficient management of the transportation sys-
F1 F3 F3 F1 tem by utilizing available resources) are also revealed
G1 G1 G1 G3 as key indicators of road infrastructure development.
H2 H1 H2 H1 These findings further reflect that considering the limited
I2 I2 I3 I2 availability of non-renewable resources, the principles
of sustainability should be implemented while building
the road infrastructure in the country while efficiently
and effectively utilizing the available resources. Moreo-
of the translational modes and transportation histories ver, since developing nations are available with scarce
on existing roads to further project the development of resources and facilities to convert those resources into
strong road infrastructures to cater to the need of exist- end products are limited (Zebra et al. 2021), smart tech-
ing transporters as well as prospected transporters. These nologies should be applied to gain the maximum benefits
results can further be related to the findings of previous from those available resources.
studies that suggested the continuous increase of traf- Finally, results revealed the potential importance of
fic on the roads and the issues of congestion in big cities A2 (societal efforts to extract mutual benefits from road
which can be sorted out by keeping track records of the infrastructure development in the country). It further
transporters and transportation mods (Euchi and Kallel reflects that in addition to the government representa-
2021; Nama et al. 2021). That can further be utilized by tives’ and official bodies’ efforts to build road infra-
the governments to effectively and efficiently project the structure in the country, the collective efforts at societal
needs of road developments in various areas. levels are important. It further shows the individuals’
Additionally, E2 (Strict measures for all travelers along perceptions of the societal image where they consider
with the quality of roads and transportation systems), H2 themselves a part of this society and try to preserve the
(Clearly defined transportation policies), and I2 (Invest- existing resources and make collective efforts to develop
ments for enhancement of the road infrastructure and society as a whole. For that, they not only financially par-
local transport facilities) were also found as key indica- ticipate in building infrastructures in the local areas but
tors of road infrastructure development in Indonesia. also take the responsibility of protecting existing infra-
These constructs present the significance of laws and structures. All these constructs are positive indicators of
regulations in the country and the level of investments developing road infrastructure in Indonesia and can be
to provide local transport facilities to the masses in the applied in any developing nation.
country. Moreover, the security measures while trave-
ling in the country are deemed important to further
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