INFRASTRUCTURE INVESTMENT AND INCLUSIVE REGIONAL ECONOMIC DEVELOPMENT IN INDONESIA

Abstract

Background: Infrastructure can improve connectivity and productivity while distributing gains unevenly when access, affordability, local capabilities, displacement, and maintenance are neglected. Aim: This focused review explains how the relationship between the focal practices and inclusive regional economic development operates in Indonesian regions investing in transport, digital connectivity, energy, water, and public-service infrastructure. Method: A conceptual narrative synthesis draws on selected scholarly and institutional publications. The source record is coded by mechanism, boundary condition, organizational rollout risk, and practical implication. Results: The synthesis identifies six linked mechanisms: market access and travel-time reduction, service reliability, local supplier participation, human-capital complementarity, spatial distribution of benefits, maintenance and institutional quality. The investigation indicates that outcomes depend less on nominal adoption than on organizational rollout quality, governance, learning, and fit with local capacity. Conclusion: Decision makers should define the expected outcome, assign responsibility, establish a small set of auditable indicators, and revise the intervention when source record contradicts its assumptions. Contribution: The study provides a conditional framework without claiming primary data that were not collected.