Kadin ready to support collaboration among government and business entities to complete PSNs
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Kadin siap dukung kolaborasi pemerintah dan badan usaha untuk tuntaskan PSN
28 July 2023
By: Amrozi Amenan & Tri Murti
The Indonesian Chamber of Commerce and Industry (Kadin) is ready to support cooperation between the government and the business world to complete national strategic projects (PSNs). Through the role of Kadin as the vessel for business players to communicate with the government, cooperation between the two sides is expected to be tighter.
“Through strong advocacy, Kadin can fulfil the requirements and the aspirations regarding national strategic projects. So, we will always prioritise public-private partnerships as we believe the government cannot stand on their own. The business world also cannot go at it alone, so we must collaborate,” Kadin Maritime, Investment, and Foreign Affairs Vice Chairperson Coordinator Shinta Kamdani said on the second day of Conference on National Strategic Projects in Jakarta on Thursday (27/7/2023).
According to Shinta, accelerating PSN construction will significantly boost equality in Indonesia’s economy.
“This is why it is important to accelerate national strategic projects, which will boost equitable development to fulfil basic needs, the public’s welfare, and regional development,” she stated.
Shinta also said that economic inequality in various regions could be seen from the data from Statistics Indonesia (BPS) in 2022 that stated 56.48% and 22.04% of the gross domestic product (GDP) in Indonesia was produced in Java and Sumatra respectively. Meanwhile, the GDP of Maluku and Papua is less than 10% of Kalimantan, Sulawesi, Bali, and Nusa Tenggara.
Furthermore, Shinta is also highlighting the importance of human capital development. Not only infrastructure development, she thinks that human resources are also a crucial aspect that needs to be prioritised by Kadin.
“We see that it is our priority programme. How we can develop talents by providing training and education. In the end, PSNs also need a capable workforce,” she said.
Amid the current condition of the global economy that was filled with inflation in other countries and pressure on the banking sector, Shinta reckoned that there were still many challenges that must be faced by Indonesia in the future.
As quoted by Antara, Shinta also forecasts that global economic activities will decline in the rest of the year compared to 2022. Hence, cooperation between the government and business players is a key strategy to survive amid economic uncertainty.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said that, out of 210 PSNs, 158 PSNs with an investment value of Rp1,102.7 trillion have been completed.
“The key is infrastructure. The PUPR (Public Works and Housing) Ministry has the most portion with 120 PSNs. Hopefully, the people are aware of what we are physically building. They all improve the competitiveness of our economy,” Coordinating Minister Airlangga said.
70% completed
On the other hand, the PUPR Ministry, until July 2023, have completed 87 PSNs or 70% of the overall target of 125 PSNs.
“At the end of 2023, we are targeting the completion of the construction of Batang Integrated Industrial Estate and 24 other PSNs,” PUPR Minister Basuki Hadimuljono said in his statement after Conference of Sewindu National Strategic Projects themed Sustainable Infrastructure Towards Indonesia Emas 2045 that was held by the Coordinating Ministry for Economic Affairs in Jakarta on Wednesday (26/7/2023).
According to Minister Basuki, the PSNs that are prioritised are infrastructure development projects that are expected to provide a multiplier effect on economic growth and equality in the public’s welfare.
“Infrastructure plays a role and contributes to our country’s growth. Not only does it supress logistics costs and improve the nation’s competitiveness, but it also supports equitable development and social justice,” Minister Basuki added.
In the water resources sector, the PUPR Ministry has completed the construction of 36 dams with a capacity of 1.9 million m3. In the highways sector, they have completed the construction of 1,500 km of toll roads with 27 toll projects that use the public-private partnership (PPP) scheme, including Cisumdawu toll road, Pekanbaru-Dumai toll road, and Balikpapan-Samarinda toll road.
Besides that, the PUPR Ministry has also completed seven projects in the housing sector. The ministry has also implemented the PPP scheme in the drinking water provision sector with Umbulan Regional Drinking Water Supply System (SPAM), West Semarang Regional SPAM, and Banjarbakula Regional SPAM. The total capacity is around 5,750 litres per second to serve around 500 thousand house connections.
Satisfaction survey at 82.2%
Meanwhile, the Transportation Ministry appreciated the public perception survey that was held by the survey institution Indikator that mentioned that the satisfaction rate for the performance of Transportation Minister Budi Karya reached 88.2%.
“We think that the survey result shows that the people are satisfied with the performance of Budi Karya Sumadi as the transportation minister. For us, this shows that the people appreciate the activities of the Transportation Ministry and the Transportation Minister that is focusing on his duty to improve transportation connectivity in Indonesia,” Transportation Ministry Spokesperson Adita Irawati said in Jakarta on Thursday (27/7/2023).
Moreover, the Transportation Ministry has completed various PSNs in the air sector, namely Yogyakarta International Airport (YIA) in Kulon Progo, Komodo Airport in Labuan Bajo, and Lombok Airport in Praya. In the maritime sector, they have completed Labuan Bajo Multipurpose Port, Kijing Terminal Port, Sanur Port, and Patimban Port. Next, in the railways sector, they have completed South Sumatra LRT, Makassar-Parepare Railway stage 1, and YIA Airport Train.
Another task that has been carried out is for the maritime highway programme that has been provided scheduled ships to reduce the price disparity of basic needs in eastern Indonesia. Several regions that have been running smoothly are Morotai, Merauke, and several other regions.
Besides the completed strategic projects, the Transportation Ministry is also targeting to complete several national strategic projects, such as Jabodebek Integrated LRT, Jakarta-Bandung High-speed Railway, Makassar New Port, and several other projects.
“The handling of Eid homecoming flow and return flow in 2023 is also one of Transportation Minister Budi Karya’s performances that is appreciated by the people in the survey. He also successfully handled transportation during the Covid-19 pandemic to maintain safety, security, and health,” Adita said.
