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.
Bisnis Indonesia - Proyek Strategis Nasional: Pekerjaan rumah tersisa Kementerian Perhubungan
15 May 2024
By Lorenzo A. Mahardhika and Hendra Wibawa
The Transportation Ministry still has six national strategic projects (PSNs) remaining, despite successfully completing 25 projects until the start of this year.
The progress of PSNs in the transportation sector appears to be moving quickly. There were at least 35 PSNs assigned to the Transportation Ministry, more than half have already been completed.
Transportation Minister Budi Karya Sumadi reported that 25 PSNs in the transportation sector for the 2020-2024 period were completed at the start of this year.
The completed projects consist of 11 PSNs in the sea transportation subsector, seven projects in the railway subsector, and seven projects in the air transportation subsector.
“Quantitatively, the Transportation Ministry has completed 25 or 82.5% of the PSNs,” he stated at the PSN Acceleration and Pre-evaluation National Work Meeting in Jakarta on Tuesday (14/5).
For example, Budi Karya mentioned several PSNs for the 2020-2024 period that have been completed, including Yogyakarta International Airport Train, Makassar New Port, Komodo Airport in East Nusa Tenggara (NTT), and Zainuddin Abdul Madjid Airport West Nusa Tenggara (NTB).
He continued the Transportation Ministry was targeting to complete four PSNs this year. These PSNs are are Sorong Port, Benoa Port through Bali Maritime Tourism Hub (BMTH), double-track railways in southern Java, and Lahat-Kertapati Logistics Railway.
Unfortunately, the Transportation Ministry’s journey is not completely smooth. The Transportation Minister revealed that the Transportation Ministry still has 6 PSNs set to be completed after 2024, namely Velodrome-Manggarai LRT, Jakarta MRT East-West Line, and continuity of Jakarta MRT North-South Line.
There are also East Kalimantan Logistics Railway, Palembang Baru Port, and Muaro Jambi Container Port.
He explained that the Transportation Ministry was developing PSNs to improve connectivity across Indonesia. This is in line with the Indonesia-centric vision of President Joko Widodo to promote balanced development in Indonesia.
Budi Karya is also committed to continuing PSN development in the transportation sector until the end of the administration of President Joko Widodo (Jokowi) in October 2024.
“This is our cooperation. Inshallah (God willing), they will be products of President Jokowi’s leadership. We have to provide support so that they can be completed in the last four months [of his administration],” Budi Karya stated.
Regarding projects in South Sumatra and Jambi, Budi Karya said that they would be worked on by the private sector using the public-private partnership (PPP) scheme. He said that the Transportation Ministry has completed land acquisition for the projects.
In relation to the PSN report in the transportation sector, the government has also removed the Jakarta-Surabaya semi high-speed railway from the list of PSNs.
One of the reasons why the Transportation Ministry decided to remove the Jakarta-Surabaya semi high-speed railway is because the project has not started yet.
Besides that, the Transportation Ministry is also planning to extend Jakarta-Bandung High-speed Railway to Surabaya, East Java.
The Jakarta-Surabaya semi high-speed railway, which initially received funding commitment from Japan, has been removed from the list of PSNs in the transportation sector.
High-speed railway
Currently, the government is directing the Jakarta-Bandung High-speed Railway project that will be extended to Surabaya to be included on the list of PSNs.
Acting Deputy VI for Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated that the extension of the high-speed railway to Surabaya was not included on the list of PSNs.
Susiwijono said that the project could be included on the list of PSNs if the Coordinating Ministry for Economic Affairs has received the proposal document regarding the project from the relevant technical minister, in this case Transportation Minister Budi Karya Sumadi.
He added that the Coordinating Ministry for Economic Affairs has not received a proposal to include the Jakarta-Surabaya High-speed Railway project on the list of PSNs.
“We have not received a recommendation from the relevant technical ministry, which is the Transportation Ministry,” he stated.
Jakarta-Bandung High-speed Railway or WHOOSH has been included on the list of PSNs based on Coordinating Minister for Economic Affairs Regulation No. 8/2023 on Fourth Amendment to Regulation of the Coordinating Minister for Economic Affairs Number 7 Year 2021 regarding Change of National Strategic Projects List. WHOOSH has been fully operating since 2 October 2023.
PT Kereta Cepat Indonesia China (KCIC) as the operator of WHOOSH is continuously discussing the plan to extend the high-speed railway project to Surabaya, East Java.
KCIC President Director Dwiyana Slamet Riyadi said that he was currently discussing the plan to extend the high-speed railway project with relevant parties, such as the Transportation Ministry, the Coordinating Ministry for Maritime Affairs and Investment, and more.
At the initial stage of the high-speed railway extension plan, the government is planning to lay tracks up to Yogyakarta first.
“There is a possibility that the route will be built to Yogyakarta first. Constructing directly to Surabaya will be time-consuming and costly,” Dwiyana said recently.
Dwiyana is hesitant to specify which regions the Surabaya high-speed railway will pass through to avoid speculations that could drive up land prices.
Dwiyana added that KCIC would ensure a preliminary study is conducted thoroughly before beginning physical construction.
This applies to the route determination, feasibility study, and more.
“We have experience from Jakarta-Bandung High-speed Railway. The result of the route extension to Yogyakarta and Surabaya will be better,” he stated.
Transportation Ministry Spokesperson Adita Irawati mentioned that the plan to study Jakarta-Surabaya High-speed Railway with China was still in discussion.
He said that the Railway Directorate General would also be involved in the mutual study.
Next article: Boosting national strategic project development
