The role of government guarantees in environmental and social management for infrastructure development

The Indonesian government is currently focusing on infrastructure development to stimulate economic growth with equal distribution of infrastructure throughout Indonesia. Good Infrastructure availability will improve connectivity between regions so that the flow of goods and services becomes more efficient. However, infrastructure development has challenges in managing the impact on complex environmental and social conditions. The Indonesian government encourages to accelerate infrastructure development, one of which is by providing government guarantees through the Badan Usaha Penjaminan Infrastruktur (BUPI). The existence of the BUPI can accelerate infrastructure development by providing guarantees to Project by requiring feasibility of environmental and social aspects. These conditions encourage sustainable infrastructure development by look carefully at ecological equilibrium, social conditions of the community, and respect for local culture.