Ichsan Ali & Arnoldus Kristianus, Jakarta – The government aims to wrap up 41 National Strategic Projects (PSN) by the year 2024, while concurrently removing 12 projects from the PSN list.
Suroto, a deputy at the Coordinating Ministry for Economic Affairs, said the progress of PSNs depends on the timely completion of financing, land acquisition, and necessary permits within the current year.
"The execution of PSNs contributes to job creation, increased value-added, and economic growth. From 2016 to 2023, 2.71 million direct job opportunities were generated across 190 projects," Suroto said during a press conference on Wednesday.
The Ministry records show that as of December 2023, a total of 190 PSNs had been completed since the inception of the program in 2016, with a cumulative project value of Rp 1,515.4 trillion ($96.78 billion).
Specifically for 2023, 37 PSNs were completed with a budget reaching Rp 475.4 trillion. These projects include seven dams, three ports, five toll roads, four industrial zones, five railways, three airports, one energy project, one education project, one technology project, five border crossing posts, and two electricity projects.
"During 2023, 37 projects were completed, surpassing our target from the previous year," added Suroto.
The collective value of strategic projects slated for completion this year is expected to consume a budget of approximately Rp 499 trillion. Among the notable projects are:
- Cimanggis-Cibitung Toll Road: Rp 4.5 trillion
- Kisaran-Tebing Tinggi Toll Road Phase 1 (Kisaran-Indrapura): Rp 6.07 trillion
- Sigli-Banda Aceh Toll Road: Rp 16.5 trillion
- Benoa Maritime Tourism Hub: Rp 6.14 trillion
- Leuwikeris Dam, West Java: Rp 2.04 trillion
- Way Apu Dam, Maluku: Rp 1.6 trillion
- Jragung Dam, Central Java: Rp 2.8 trillion
- Development of Teluk Palu Port: Rp 1.16 trillion
- Bantaeng Industrial Zone, South Sulawesi: Rp 155 trillion
- Indonesia Pomalaa Industry Park, Southeast Sulawesi: Rp 100 trillion
Simultaneously, the government decided to remove 12 projects from the PSN list after receiving input from relevant ministries. This removal has been approved by President Joko Widodo.
"As of the second semester of 2024, there has been no progress on these projects. The proposal to remove them from the PSN list has received the president's directive," said Suroto.
Despite being removed from the PSN list, the 12 projects will still proceed under the oversight of the relevant ministries. They will be executed as part of each ministry's regular program, without the benefits provided by the PSN status.
The facilities provided under PSN status include streamlined permitting processes and non-permitting measures to accelerate planning, preparation, transactions, construction, and operational control, along with financing mechanisms and fiscal incentives.
Here is the list of the 12 projects removed from the PSN:
- Jakarta-Surabaya Semi-High-Speed Train
- Provision of Raw Water in Sidan, Bali Province
- Rantau Prapat-Kisaran Toll Road
- Langsa-Lhokseumawe Toll Road
- Lhokseumawe-Sigli Toll Road
- Dumai-Sp Sigambal-Rantau Prapat Toll Road
- Muara Enim-Lahat-Lubuk Linggau Toll Road
- Drinking Water Supply System (SPAM) Djuanda/Jatiluhur II, West Java-DKI Jakarta
- SPAM Jatigede, West Java
- SPAM Kamijoro, DIY Yogyakarta
- New Ambon Port
- Tanggamus Industrial Zone, Lampung