If it is managed well, the Asian Games multisport event in Jakarta and Palembang this year can also provide economic benefits.
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A man walks up an aisle on Friday (12/1) in the Main Stadium at Gelora Bung Karno (GBK), Senayan, Jakarta. The stadium, which has been undergoing renovations since August 2016 in preparation for the 2018 Asian Games, has been declared complete and will be used to host the friendly match on Sunday (14/1) between Indonesia and Iceland.
JAKARTA, KOMPAS – Indonesia, as the host, should not only be able to encourage the progress of sports in the country ,but also provide more optimal benefits for economic growth. In fact, this event could become the stage for Indonesian advancement.
The Asian Games 2018, which will be held in Aug. 8 to Sept. 2, will see 45 countries participating. A total of 40 branches, 67 disciplines and 462 sporting events will be held in Jakarta and Palembang. At least 15,000 athletes and officials will take in the multisport event. As the host, Indonesia has spent up to Rp 30 trillion to prepare for the event.
"We are investing in newly renovated stadiums, aquatic arenas, other arenas in Palembang and accommodation for the athletes. If calculated, all investments reach around Rp 25 trillion. Including LRT [light rail transit] in Palembang and Jakarta, it reaches Rp 30 trillion," Vice President Jusuf Kalla said at his office on Wednesday.
With enough investment, the government targets three criteria for a successful Asian Games, namely successful arena development, successful implementation and successful athlete performance, with the target of entering the top-10 rankings.
"We are optimistic that these three aspects—venues, organization and performance—can be achieved," said Vice President Kalla, who is also chairman of the steering committee of the Indonesia Asian Games Organizing Committee (Inasgoc).
Beyond the sports aspect, the government is aware that the Asian Games could have an economic impact and become a stage for Indonesian culture in the international world, as the event is broadcast live in a number of countries.
"You imagine, there will be 4 billion viewers. People can see directly how [much progress] Indonesia has made," Kalla said.
Separately, sports observer Fritz Simanjuntak hoped the government would also use the Asian Games as momentum to significantly improve the management of sports, as it could also have an impact on economic recovery.
"Look at Japan and South Korea, which cohosted the 2002 World Cup. The result was able to spur acceleration of the Japanese and South Korean economies, which suffered economic crises at that time," he said.
Enny Sri Hartati, the executive director of the Institute for Development of Economic and Finance (Indef), emphasized the importance of the government to design the Asian Games as an economic event that adds value to the national interest.
In the context of economic growth recovery, the international arena has the potential to become a supporting factor.
"However, the government must design it in a such a way so that it can capitalize on the Asian Games not only as a sports event, but also as an event that can bring an economic effect. The problem is, until now, we have not seen such a plan," she said.
Business response
Some business circles in Indonesia responded positively and are trying to take the advantage of the Asian Games. Hotel owners, for example, are collaborating with the Tourism Ministry to initiate the Visit Wonderful Indonesia 2018 campaign. They will offer special prices for the Asian Games, with a target of 2.5 million foreign tourists visiting the country during the event.
The chairman of the Association of Hotels and Restaurants Indonesia, Hariyadi Sukamdani, said the program required close cooperation between the government and the business players, including designing tour packages outside Jakarta and Palembang. "It is a pity if we cannot take full advantage of the Asian Games. Do not let people just come and only see the sports. They should also travel and shop," he said.
According to Hariyadi, the promotion of the Asian Games is not yet optimal. "The [Asian Games] campaign is still lacking, both domestically and abroad. In the context of luring foreign tourists, the promotion should certainly be conducted overseas," he said.
State-owned enterprises (SOEs) are also trying to take advantage of economic opportunities from this event. Bank Rakyat Indonesia (BRI) director for consumers Handayani said BRI was a main sponsor and would also develop a number of businesses to facilitate committees, contingents and officials to use the bank’s services, such as by opening Britama savings accounts, with the target of 8,000 new depositors. BRI will also issue BRIZZI electronic cards, credit cards and debit cards with the Asian Games logo.
Bank Mandiri also sees the Asian Games as a strategic event to promote the image of the bank. According to the corporate secretary of the bank, Rohan Hafas, the Asian Games could produce financial value of Rp 120 billion for the bank.
The Asian Games also have a positive impact on the region. The governor of South Sumatra, Alex Noerdin, said at least three toll roads, two bridges and an LRT system have been built in Palembang to support the Asian Games. The construction of all the facilities is supported by state-owned and private companies with total investment of Rp 80 trillion. "If you just rely on local budget, the money is certainly not enough," he said.
The preparation for the Asian Games in Palembang also had positive impact on economic growth in South Sumatra province in the third quarter of 2017, which reached 5.56 percent. This growth is higher than the national economic growth of 5.06 percent in the same period.
