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Investor Daily - Pemerintah tuntaskan 190 PSN, total investasi Rp1.515 triliun
9 February 2024
By Arnoldus Kristianus
Jakarta, ID – The government completed 190 national strategic projects (PSNs) from 2016 to 2023. The projects are predicted to absorb a workforce of 2.81 million individuals.
In 2023, 37 PSNs with an investment of Rp475.4 trillion were completed. The PSNs encompass three ports, five toll roads, four designated areas, five railway sector initiatives, three airports, one energy venture, one education development, one technology initiative, five cross-border posts, and two electricity projects. These PSNs will be continuously worked on this year, positioning them as pivotal contributors to economic growth. Their anticipated impact is expected to bolster economic growth by 5.2%.
“All PSNs have a multiplier effect on both the workforce and the economy in each region. As many as 37 PSNs were completed in 2023, surpassing the target,” Regional Development and Spatial Planning Deputy of the Coordinating Ministry for Economic Affairs Wahyu Utomo said in Jakarta on Wednesday (7/2/2024).
He said that PSNs have also yielded numerous advantages, including substantial support for connectivity. With the operation of 24 new ports and enhanced services at 60 ferry ports, PSNs can strengthen Indonesia’s infrastructure to be a maritime axis.
In addition, Wahyu pointed out the implementation of various air infrastructure projects, including 19 new airports and six air cargo facilities, was aimed to streamline logistics traffic. Moreover, PSNs are also expected to enhance the efficiency of road transportation through the addition of 2,864.4 kilometres (km) of new toll roads and 2,650 km of new roads.
Regarding the energy security sector, he stated that PSNs have significantly bolstered the availability and the distribution of electricity by providing a power plant with a capacity of 20.6 gigawatts (GWs) and connecting 1,172 km of transmission network.
“PSNs can also increase natural gas production by 23.3 mtpa (metric tonne per annum) or 3.3 bcfd (billion cubic feet per day),” he affirmed.
In the realm of food sovereignty and disaster mitigation, Wahyu revealed that the completion of 42 dams has also increased raw water capacity by 27.78 m3/second. Additionally, these projects have also facilitated the irrigation of 283,752 hectares (ha) of lands. The construction of these dams can also reduce flooding by up to 710,905 m3/second and generate 149 MW of electricity.
In terms of industrial downstreaming and investment, Wahyu continued that PSNs could accelerate the development of special economic zones (SEZs) and strategic industries. This acceleration is evident through the advancement of 20 SEZs that have resulted in an investment realisation of Rp117 trillion and the establishment of eight operational strategic industrial estates that have attract investments totalling Rp299 trillion. These factors play a crucial role in providing employment opportunities for a substantial workforce of 149,282 individuals.
“Referring to the study on macroeconomic impacts on national strategic projects conducted by KIAT and Bappenas, PSNs typically require a span of five to seven years to generate a multiplier effect to ensure that their full benefits are realised and enjoyed,” Wahyu revealed.
2024 target
With those various impacts, PSN construction will be continuously boosted in 2024 with a target to complete 41 PSNs. From that number, 31 projects are predicted to be completed in October 2024, while the rest are predicted to be completed between October and December
“In the future, this positive performance has the potential to make an optimal contribution towards enhancing the economy and fostering regional development,” Wahyu said.
Development Acceleration and Utilisation Assistant to Deputy of the Coordinating Ministry for Economic Affairs Suroto said that PSNs could continue as long as financing, land procurement, and permits could still be provided in 2024.
“After 2024, will PSNs still exist? In the RPJMN, there are several PSNs that will be continued after 2024. It is a form of PSN continuity this year, which will be included in the 2025-2029 RPJMN,” Suroto said.
He said that PSN construction would create new jobs, increase added value, and boost economic growth. From 2016 to 2023, there were 2.71 million people absorbed in 190 projects.
On the other hand, the government has removed 12 projects from the list of PSNs following input from related ministries. The change of status has also been approved by President Joko Widodo.
“Based on the result of the evaluation from our friends from the technical ministries, the 12 projects have not progressed at all. So, these technical ministries proposed the projects to be removed, and the decision was approved by the President,” Suroto said.
It is also in line with Coordinating Minister for Economic Affairs Regulation Number 8 of 2023 on Fourth Amendment to Regulation of the Coordinating Minister for Economic Affairs Number 7 of 2021 regarding Change of National Strategic Projects List.
Even though they have been removed from the list of PSNs, he said that the 12 projects would still be carried out by the related ministries. Later, the projects will be carried out as programmes of the related ministries, different from when they were PSNs.
“Our friends in the ministries will still include them in their regular programmes, but they will not receive PSN facilities,” Suroto said.
The 12 projects are the Jakarta-Surabaya semi-high speed railway, the raw water provision project in Sidan in Bali, the Rantau Prapat-Kisaran toll road, the Langsa-Lhokseumawe toll road, the Lhokseumawe-Sigli toll road, the Dumai-Sp. Sigambal-Rantau Prapat toll road, the Muara Enim-Lahat-Lubuk Linggau toll road, Djuanda/Jatiluhur II SPAM (West Java-Jakarta), Jatigede SPAM in West Java, Kamijoro SPAM in Yogyakarta, Ambon Baru Port, and Tanggamus Industrial Estate in Lampung.
