FIELD OF THE INVENTION
This invention relates to the social economic growth and equity and more particularly this invention
Infrastructure services effect investment and economic impact.
BACKGROUND OF THE INVENTION
Indonesia's government formed IIGF to promote economic growth and enhance lives. IIGF attracts
private investment by reviewing, organising, and guaranteeing public-private infrastructure projects
(PPP). IIGF is expected to improve PPP preparation, transactions, and implementation based on
best practises that benefit all stakeholders. IIGF will help the contracting agency prepare and
implement PPPs. Infrastructure development will promote economic growth. The Ministry of
National Development Planning advocates infrastructure development in all regions of Indonesia
through connected sectors to increase economic growth, reduce unemployment, and reduce poverty.
Government, private sector, or PPP infrastructure development is likely to aid. Every PPP project
must benefit the neighbourhood economically and socially. The PPP project's economic and social
ramifications study should distinguish costs and regional and national advantages. Feasibility
studies calculate PPP projects' economic impact. Infrastructure projects rarely benefit society. There
is no extensive research on the economic and social impacts of infrastructure projects, including
techniques, indicators, data needs, analysis, and user-friendly presentation. This study responds.
SUMMARY OF THE INVENTION
Analysis and literature suggest the following: In the transportation sector, PPP infrastructure
development can be measured using direct tangible attributes/indicators, such as travel cost savings,
time value savings, and employment needed in related sectors, and indirect attributes/indicators,
such as the multiplier effect of regional economic improvement. In health infrastructure, PPP
infrastructure development can be measured using direct tangible attributes/indicators: I patient
health cost savings, (ii) labour absorption, and indirect attributes/indicators: I expanding job
prospects in other areas; (ii) regional economic improvement. Social impact of PPP infrastructure
development can be measured by social stability, conflict, and support for inclusive communities.
The social index value for the four PPP infrastructure projects showed positive community
feedback. In PPP case studies, infrastructure investment is significantly linked to direct and indirect
economic advantages. In the transportation business, the employment multiplier impact is strongly
linked to investment magnitude. Infrastructure services effect investment and economic impact.
Transportation infrastructure services strive to maximise the efficiency of consumer costs, whereas
health infrastructure focuses on the cost-effectiveness of improving public health.

BRIEF DESCRIPTION OF THE INVENTION
The infrastructure system in the construction of infrastructure networks and the service industry for infrastructure and manufacturing operations will be one of the most important parts in supporting the success of national development. The role of infrastructure, in The Medium-Term National Development Plan (RPJMN-III 2014- 2019), is able to encourage economic growth and equity, increase productivity, increase global competitiveness, absorb labor, generate the real sector, and help reduce poverty and regional development (The Ministry of National Development Planning, 2015). The addition and innovation of infrastructure will obviously have a different effect from real conditions. In the development approach, it is familiar with the terms”do nothing” and do something”. In the ”do nothing” condition, infrastructure development does not get intervention from policy makers, so the benefits or impacts obtained is really depend on other sector interventions. Meanwhile, in the ”do something” condition, infrastructure and facilities become the focus of intervention in the administration of infrastructure. As a starting point, the service will be different compared to services in the condition of the infrastructure and facilities as they are. There are many theories that have explained the role of infrastructure development in regional economic development.
Regional economic development is generally defined as a process that causes income per capita of an area’s population to increase in the long run (Arsyad, 1992). Blakely (1989) stated that regional economic development is a process in which the local government and all components of society manage various existing resources and form a partnership pattern to create a new job opportunity and stimulate economic growth in the region. Another theory explained by Rosenstein- Rodan (1943) and Nurkse (1953) is known as the big push theory. This theory focuses on increasing investment significantly and directing investment to the creation of economic institutions, infrastructure and investment coordination that has externalities in generating industrial sectors. It is clear that investment in infrastructure development is believed to have a significant effect on efforts to improve the regional economy through productive activities.
GLOBAL PARAMETERS OF INFRASTRUCTURE DEVELOPMENT IMPACTS
The international worldview, in the World Economic Forum / WEF (2018), regularly (annually) records to determine the impact of infrastructure development on social and economic change in more than 100 countries in the world, including Indonesia. In 2017- 2018 report, it was stated that infrastructure development will accelerate efforts to increase competitiveness and inclusiveness by increasing efficiency in trading activities, reducing transaction costs, increasing access to markets and giving people the opportunity to achieve better jobs and increase access on better goods and services. Some important parameters used to measure the success of development due to investment and innovation in infrastructure development include: (1) income / GDP per capita; (2) the rate of growth of labor productivity; (3) unemployment rate; (4) poverty level; (5) access to education and health services. Therefore, the development of regional infrastructure, especially those focused on infrastructure is expected to reduce logistics costs, increase efficiency (mobility), and connect people to the market. Improving quality of life, refer to the standardized Human Development Index (HDI) of the United Nations Development Program (UNDP), targets 3 main things that must be fulfilled by humans, namely health, education, and economic purchasing power. According to Carney (1998) improvements in quality of life can occur when livelihood assets have a well- connected balance. The five livelihood assets cover natural capital, human capital, social capital, physical capital, and economic capital. Everything becomes an internal capital owned by individuals and is influenced externally by
the socio-economic conditions of a region and institutional policies. When capital is sufficient for each other and affected both by external factors, there will be an increase in the quality of life that is sustainable. The results of Indonesia’s HDI calculations during the period 1980 - 2014 increased from 47.4 to 68.4. Indonesian HDI 68.4 is an indicator of the welfare of the Indonesian people who are above the average in the group of middle stage human development countries (63.0) and below the average number of countries in the East Asia and Pacific region (71.0) ( UNDP, 2015). Reiterated by Singgih et.al (2016), states that the factors that influence HDI are not enough to evaluate the financial performance of an area, but how to improve infrastructure that can support access to education, health, employment, and investment services, are the most important thing that should come first. Some parameters indication of the impact of infrastructure development size on economic and social aspects, referring to the views or global approaches mentioned above, emphasize how much the results of infrastructure development affect the improvement of the regional welfare level in the economic (macro) perspective and the quality of life of the people.
DIRECT, INDIRECT, AND INDUCED IMPACT
In the context of regional development, infrastructure development can provide direct, indirect, and induced impacts, with the following explanation (Regional Economic Studies Institute-Towson University, 2016): direct impact; is the economic impact of development investment on employment creation absorbed in the sector concerned; indirect impact; is the economic impact formed due to the goods and services that are generated by the operation of the facilities built; induced impact; is a follow-up effect due to the emergence of direct and indirect impacts, such as an increase in household income, the opening of new businesses around the project, etc.
The results of a study conducted by Towson University in 2016 indicate a significant economic impact from the operation of freight trains in America. During the operation period and capital investment of freight trains in 2014, it had an effect of around 1.5 million jobs (1.1% of all US workers - almost 9 jobs for each railroad job), nearly US $ 274 billion in economic output (1.6% of total US output), and US $ 88 billion in wages (1.3% of total US wages). The train also generates nearly US $ 33 billion in tax revenue. The economic contribution is the effect of all direct, indirect, and induced impacts throughout the Americas. In addition, millions of American workers work in more competitive industries in a difficult global economy thanks to the affordability and productivity of American railroads. Discussing the impact of transportation infrastructure more specifically, for example, as initiated by Rodrigue (2017), distinguishes the types of impacts of transportation infrastructure development into three scales, namely: direct, indirect, and induced impact. The smallest scale of impact is the direct impact related to the capacity and efficiency of an infrastructure facility. The next scale of impact (bigger) is indirect impact or indirect impact, which is more focused on aspects of accessibility and economies of scale. The broadest scale of impacts is induced impacts or impacts that focus on the influence of an infrastructure facility on various sectors affected (multipliers effects) and opportunities for benefits that arise, for example: increased mobility, the formation of distribution networks, social opportunities and economic activities, and increasing competitiveness.
Another study conducted by PengXu (2012) to identify the direct and indirect impacts of the development and operation of the Lillestrom railroad, gives an indication that the operation of the Lillestrom railroad has a direct impact on: (1) reduction in transportation costs; (2) time savings on shipping goods; (3) reduce road congestion; and (4) improving transportation accessibility and safety. While in the case of indirect impacts (indirect contributions), the operation of the railway line has an influence on regional development such as: (1) improving the investment climate; (2) optimization of industrial structure; (3) spur the process of urbanization; and (4) the formation of more economic movements / mobility, which in the aggregate will affect regional economic growth. Using the before-after comparison analysis method based on time series data during 1990- 2011, PengXu study (2012) give an indication of an increase in the rate of economic growth in the area after the operation of the Lillestrom railroad, which economic growth averaged 5.45% per year before the existence of this railroad (in the period 1990-1998), whereas after the operation period (during 1999-2011) economic growth was boosted at an average 8.22% per year. This means that, there was an increase / increase in the regional economic growth rate of 2.77% per year.
TANGIBLE AND INTANGIBLE IMPACT
In economic context, an impact is interpreted as benefits which are generally classified into: (1) direct benefits that can be measured financially or tangibles, and (2) indirect benefits that cannot be measured financially or intangibles (Parker, et al. 1988). While Remenyi et al. (2000) develop two types of benefits or impacts into four types of benefits or impacts: tangible measurable, i.e. direct impacts on company profits and they can measure the effects objectively (financially), for example: reducing costs or increasing profits; tangible unmeasurable, i.e. direct impacts on company profits but they cannot measure the effects objectively (financially), for example: increased security; intangible measurable, which is an indirect impact on company profits, but they can measure the effects. This is the opposite of tangible unmeasurable, for example: increasing customer satisfaction; intangible unmeasurable, i.e. indirect effects on company profits and they cannot measure the effects financially, for example: market changes, consumer perceptions. Fumagalli et al. (2010) classify the impacts / benefits into tangible benefits and intangible benefits. Tangible benefits can be measured from indicators: (1) efficiency, i.e. saving or reducing costs; and (2) effectiveness, which is an increase in performance that can increase profits / income. Intangible benefits can be viewed from non-economic
FINANCIAL MEASURES OR INDICATORS, SUCH AS: LEVEL OF SATISFACTION OR COMPANY IMAGE, AND OTHERS. RESEARCH METHOD
Conceptually, the social and economic analysis infrastructure project economy is carried out to obtain the type and magnitude of the impact (quantitative / qualitative) indication for beneficiaries in terms of user / community and regional / spatial aspects. For this reason, it is important to know the objectives or targets of the development of each PPP infrastructure project. The framework for analyzing the social and economic impacts of infrastructure projects in this study will follow the following line of thinking (see Figure 1). Input indicators are the resources that contribute to the production and output achievement, for example capital, labor and equipment needed in the development process. Output is goods or services / facilities produced from a number of capital (inputs) that have been invested. Outcomes are a specific form of benefit from facilities built as a consequence of the use of output, which should be closely related to the achievement of strategic development goals. Impact is the result of achieving specific outcomes, such as improving welfare, reducing poverty, and creating employment. economic changes in the affected area which can be localized or regional depending on the scope of services provided. The attributes or indicators used in the economic and social impact analysis in the case of 4 projects development that are the focus on the analysis in this study can be broadly grouped into 2 types of infrastructure, namely: transportation and hospitals as can be seen in Table 1. A number of attributes or indicators arranged in the table above are used as a tangible economic impact analysis model, while social impact analysis uses a qualitative measurement approach (intangible impacts).

We Claims:

1. It is able to encourage economic growth and equity, increase productivity, increase global competitiveness, absorb labor, generate the real sector, and help reduce poverty and regional development.
2. As a starting point, the service will be different compared to services in the condition of the infrastructure and facilities as they are.
3. This theory focuses on increasing investment significantly and directing investment to the creation of economic institutions, infrastructure and investment coordination that has externalities in generating industrial sectors.
4. The addition and innovation of infrastructure will obviously have a different effect from real conditions.
5. The framework for analyzing the social and economic impacts of infrastructure projects in this study will follow the following line of thinking.
6. Input indicators are the resources that contribute to the production and output achievement, for example capital, labor and equipment needed in the development process.
7. Output is goods or services / facilities produced from a number of capital (inputs) that have been invested.
8. Outcomes are a specific form of benefit from facilities built as a consequence of the use of output, which should be closely related to the achievement of strategic development goals.