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Indonesian govt to proceed with incomplete PSN past 2024

Tempo - September 14, 2023

Moh. Khory Alfarizi, Jakarta – Coordinating Minister for Economic Affairs Airlangga Hartarto ensured that the National Strategic Projects (Proyek Strategis Nasional – PSN) financed by the State Budget will be finalized next year.

"State Budget-financed PSN with clean and clear financing is estimated to be finalized in 2024. Meaning, the projects are no longer dependent on the State Budget," he said in South Jakarta on Wednesday, September 2023.

Meanwhile, Airlangga added, the PSN using public-private partnerships (PPP) financing schemes including ones with limited concession schemes and land value capture will proceed beyond 2024. "In accordance with the president's (Joko "Jokowi" Widodo) instruction," he said.

The minister proceeded to report that the government is providing various support for PSN, from soft rent guarantee to the formation of The Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) as the coordinating unit to settle PSN issues.

"Currently, we have 68 ongoing projects in their construction phase and 31 projects plus 9 programs in their partial operation," Airlangga said.

Out of 137 PSN distributed across Indonesia, 15 PSN are located in Sumatra, amounting to Rp179 trillion. There are 16 PSN in Kalimantan with Rp81 trillion in value and 17 PSN in Sulawesi amounting to Rp222 trillion.

"And then, we have 50 PSN located in Java amounting to Rp244 trillion, 15 PSN in Bali Nusa with Rp8 trillion in value, and 10 PSN in Maluku and Papua equal Rp104 trillion in value," he concluded.

Source: https://en.tempo.co/read/1771936/indonesian-govt-to-proceed-with-incomplete-psn-past-202