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 - 14 proyek strategis nasional siap digarap swasta
20 March 2024
Jakarta, ID – Indonesian President Joko Widodo (Jokowi) has approved 14 new national strategic projects (PSNs) funded by the private sector. Their financing does not rely on the state budget (APBN).
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government would develop 14 new PSNs with financing from the private sector, which have been approved by President Joko Widodo (Jokowi).
“The President reported 14 new PSNs financed by the private sector for job creation without relying on the APBN,” Airlangga Hartarto said after a meeting on PSN at the Presidential Palace in Jakarta as quoted by Antara on Tuesday (19/3/2024).
Among the new PSNs, Airlangga mentioned a new project involving adjustments to nomenclature and changes in the scope of the PSN itself.
The fourteen PSNs include the development of Pantai Indah Kapuk Tropical Concept; Wiraraja Industrial Estate on Galang Island in Batam; the North Hub Development Project involving the Ministry of Energy and Mineral Resources and the oil and gas company from Italy ENI; Neo Energy Parimu Industrial Estate in Parigi Moutong in Central Sulawesi; and Patimban Industrial Estate in Subang, West Java.
“Patimban Industrial Estate is not new. The new aspects are the energy supply and the development of the new economic zone in Patimban,” Airlangga explained.
Next, there are the construction of Giga Industrial Park in Southeast Sulawesi; Kolaka Resource Industrial Estate and Stargate Industrial Estate sponsored by Astra; Surabaya Waterfront Coastal Area in Kenjeran, East Java that includes fish markets and community economic activities; Neo Energy Morowali that features a solar power plant (PLTS) and battery development; and an Integrated Development Area in Bumi Serpong Damai (BSD) designated for medicinal and educational purposes.
The government highlighted another new PSN, Toapaya Industrial Estate in Bintan, which is an expansion of Bintan Alumina. Additionally, there are two projects that are continuations of existing ones, the development of toll roads in Harbour Road II Section and Bandung City.
According to Airlangga, the PSNs developed by the government are spread across Sumatra to Papua.
“We are conducting a larger development [in terms of the number of projects] outside Java,” he said.
During the occasion, Agrarian and Spatial Planning (ATR) Minister/National Land Agency (BPN) Head Agus Harimurti Yudhoyono (AHY) said that the lands used for PSNs were clean and clear.
He also ensures that the land procurement process for PSNs will not cause issues in the future.
“Because we know, at various locations, there are individuals who still live there. They live, work, farm, and garden at locations that will be made PSNs,” AHY said.
According to him, to address this matter, coordination with relevant ministries/institutions that considers the applicable regulations is required.
195 PSNs completed
The government highlighted 195 PSNs worth Rp1,519 trillion were completed from 2016 to February 2024.
“Meanwhile, 77 projects and 13 projects worth Rp1,960.7 trillion are still in construction or partially operating,” Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Next, the government aims to complete 41 PSNs in 2024, with five projects finished in January-March, 24 projects in April-September, and 12 projects in October-December.
Regarding PSN development, Airlangga mentioned several issues were reported to President Joko Widodo, especially regarding spatial planning.
Several PSNs have experienced disruptions in their construction, including the Gilimanuk-Mengwi toll road, which underwent a status change from unsolicited to solicited.
“Then, there is the development of the PSN Pupuk Industrial Estate in Fakfak, involving the Ministry of Environment and Forestry. We have also reported issues regarding customary lands. Meanwhile, concerning the Batang Integrated Industrial Estate, there is an issue regarding the USD6 gas price. There will be a special meeting later [to discuss these issues],” Airlangga stated.
Public Works and Housing (PUPR) Minister Basuki Hadimuljono said that 32 PSNs appointed to the PUPR Ministry were set to be completed in 2024.
Basuki explained that, in the first half of 2024, there were 11 PSNs scheduled for completion, including eight dams, two toll roads, and one irrigation channel.
In the second half of 2024, there are 21 PSNs set to be completed, comprising of 11 dams, eight irrigation channels, three drinking water supply systems (SPAMs), two toll road projects, and one sea wall.
Next, Basuki said that 39 PSNs would be completed after 2024 as they were only assigned in 2023.
“The rest will be completed in 2024. Some will be completed in 2025 and 2026. There are 39 PSNs as they were only ordered in 2023,” he said.
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