President Indonesia Underscores Importance of Road Infrastructure for Production Activities

President Jokowi talks to an orange farmer in Orange village, Karo regency, North Sumatra province, Friday (02/04). (Photo by: BPMI of Presidential Secretariat/Laily Rachev)

Newstoday - Proper road infrastructure is essential to support production activities in an area, President Joko “Jokowi” Widodo has said.

The President made the statement on Friday (02/04), after inspecting Liang Melas Datas Road in Karo regency, North Sumatra province, which is an access to orange-producing area Orange Village.

“After observing on the ground, proper roads are highly needed because it deals with the cost structure of oranges. If the price of oranges is Rp5,000, the delivery fee must not reach Rp8,000. It will not add up,” he said.

The President expressed hope that the repair of Liang Melas Datas Road can reduce the logistics cost to produce oranges in the area, so the price of oranges produced by local farmers can compete with that of imported oranges.

“We hope that with this production road repair, the cost structure, especially for logistics fees, logistics cost can decrease, so oranges can be sent to all cities with a competitive price and can compete with imported oranges,” he said, adding that the repair will also increase profits for farmers.

Therefore, the Government will continue to repair production roads to make the prices of domestic commodities more competitive, he added.

“It has been calculated by Minister of Public Works [and Public Housing] that we need approximately 40,000 kilometers of production roads that need repairing, building so that the cost structure, especially logistics cost can fall to a truly normal price,” he said.

The President has also ordered Minister of Tourism and Creative Economy Sandiaga Uno to improve the packaging and branding of all commodities produced by farmers in the country so that they have a higher sales value.

“I order for better packaging, better brand building, and quality check for every orange. All of this will increase the sales prices of our farmers’ products,” he said.

Data from Ministry of Public Works and Public Housing shows that the repair of 37.2-kilometer-long Liang Melas Datas Road will require a budget of Rp164.8 billion and take up two years of working period, from fiscal year 2022 to 2023.

The road repair is expected to bring real benefits for local communities in shortening traveling time, decreasing logistics fees, facilitating agricultural commodity transportation, and support the development of Liang Melas Datas and its surrounding areas, as well as boost the economic growth of Karo regency.(*)