Transportation Ministry completes 25 PSNs in transportation sector

  • 16 May 2024

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 - Kemenhub rampungkan 25 PSN sektor transportasi

16 May 2024

By Ichsan Amin

Jakarta, ID – The Transportation Ministry has completed 25 out of the 35 national strategic projects (PSNs) in the transportation sector set by President Joko Widodo’s administration.

Transportation Minister Budi Karya Sumadi said that PSN development was expected to improve interregional connectivity, facilitate mobility and logistics, as well as boost the growth of new economic centres in various regions.

“Until now, the Transportation Ministry has completed 25 PSNs in the transportation sector,” Budi Karya said at National Work Meeting: PSN Completion Acceleration and Pre-evaluation in Jakarta on Wednesday (15/5/2024).

Out of the 35 PSNs in the transportation sector set by the administration of President Jokowi, 25 projects have been completed. The projects include seven airport projects, seven railway projects, and 11 port projects.

The seven airports include Yogyakarta Kulon Progo Airport, Komodo Airport, Raja Haji Abdullah Tanjung balai Karimun Airport, Nabire Baru Airport, and Siboru Fakfak Airport.

The seven projects in the railway sector are Tebing Tinggi-Kuala Tanjung Railway, Rantau Prapat-Kota Pinang Railway, Palembang LRT, Jabodebek LRT, Jakarta-Bandung High-speed Railway, Yogyakarta Airport Train, and Makassar-Parepare Railway.

Then, the 11 port construction projects include Kuala Tanjung Port, Kijing Terminal, Patimban Port, Sanur Port, Maloy SEZ Port, Teluk Palu Port, Makassar New Port, Likupang Port, Bitung International Hub Port, Kupang Port, and Labuan Bajo Multipurpose Terminal.

“The 10 remaining PSNs in the transportation sector is currently in construction with four projects to be completed in 2024,” Budi Karya explained.

The four PSNs set to be completed this year include two railway projects, which are Lahat-Kertapati Logistics Railways and Southern Java Double-track Railway, as well as two port projects, which are Benoa Port and Sorong Port.

Meanwhile, six projects that will be completed by the next government after 2024 include four railway projects, namely North-South Jakarta MRT, East-West Jakarta MRT Phase I, Velodrome-Manggarai Jakarta LRT, and East Kalimantan Logistics Railway, as well as two port projects, namely Muaro Jabi Container Terminal and New Palembang Port.

No longer Java-centric

For example, the Transportation Minister highlighted several PSNs that have successfully improved domestic public mobility. One such project is the Yogyakarta International Airport, which now features an airport train.

“This proves what is possible overseas is also possible in our country. It is part of our preparation to be a developed country,” he added.

To lower national logistics costs, Budi Karya continued that the Transportation Ministry has also developed Makassar New Port. The port was constructed to support connectivity on international trade routes and strengthen the role of Makassar as a gateway for logistics in eastern Indonesia.

He also said that transportation infrastructure development was no longer Java-centric, but Indonesia-centric. “What we are doing is uniting Indonesia. What we are constructing in Makassar in the form of ports and railways prove that we do not only concentrate on Java. Moreover, we are even constructing an airport in Papua,” he explained.

The Transportation Minister added that transportation infrastructure development needed cooperation among various parties. Therefore, he emphasised the importance of creative financing to improve transportation infrastructure development in Indonesia, given the limitation of the government’s budget.

“Basically, there are many opportunities for collaboration in the transportation sector. Hence, we are opening ourselves and inviting the private sector to collaborate in managing transportation infrastructure, whether in aviation, maritime, or railways. We are also simplifying regulations,” he stated.

In the future, Budi Karya envisions a harmonious collaboration among various stakeholders, including ministries, institutions, regional governments, and businesses, in preparing PSNs. “Therefore, the PSNs that have been constructed can be beneficial,” he added.

Sustainability aspect

Meanwhile, an infrastructure observer from Universitas Trisakti, Yayat Supriatna, stated that all stakeholders welcomed the infrastructure projects categorised as PSNs, which include airports, ports, and railways. However, he also emphasised the importance of addressing the sustainability aspect of these projects.

“The infrastructure has been built, yet it fails to spur development in their respective regions. We often fail to capitalise on infrastructure investments. For instance, airports and ports are often underutilised despite being constructed,” he revealed to Investor Daily.

Yayat highlighted international airports were downgraded due to a lack of foreign airlines. According to Yayat, this issue shows that regional governments are unprepared. So, future infrastructure development must focus on sustainability.

“How do we take advantage of airports? For example, there are many downgraded airports. Why not develop the economy, tourism, industries, or branding? What happened is centralised. A port is constructed in the hopes of facilitating export but is there enough export activity in the region?” he explained.

He added that, in the future, infrastructure development must recognise that transportation is a basic infrastructure that can be effectively managed by regional governments.

Furthermore, he also emphasised that infrastructure development through PSNs must prioritise supporting connectivity, including road access and other facilities that stimulate regional economic growth in the surrounding areas.

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