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The Government Accelerates Strategic Projects by the End of 2023

Up to 24 strategic national projects and industrial estate developments are ongoing construction and targeted for completion in 2023, as a means to increase the nation’s competitiveness and spur national and regional economic development for sustainable prosperity for the people.

Rayful Mudassir
26 Juli 2023 |12:15 WIB
The Government Accelerates Strategic Projects by the End of 2023
An aerial photo of the Jakarta-Bandung High-Speed Train project (KCJB) in the Padalarang area, West Bandung Regency, West Java, taken on Monday, February 6, 2023. Credit: Bisnis/Rachman

Bisnis, JAKARTA — The government targets the completion of 7 national strategic projects (PSN) in the transportation sector this year.

Wahyu Utomo, Head of the Implementation Team at the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP), announced that 158 PSNs have been completed as of July 2023. These completed projects have a total value of IDR1,102.6 trillion.

Based on KPPIP data, there are 7 transportation and logistics PSNs targeted for completion this year. The list includes 4 port projects, 2 railway projects, and 1 airport project.

One of the transportation PSNs is the Dhoho Airport in Kediri, East Java. It is being developed through a public-private partnership with the cigarette company PT Gudang Garam Tbk (GGRM).

The two railway PSNs targeted for completion in 2023 are The Jakarta—Bandung High-Speed Railway and Jabodebek LRT. Both projects are scheduled to be launched simultaneously on August 18, 2023.

From a funding perspective, the Jakarta—Bandung High-Speed Train is financed by state-owned enterprises (SOE), while the Jabodebek LRT uses the state assignment scheme for SOEs.

The government also aims to complete 4 PSNs in the port sector, namely Makassar New Port in South Sulawesi, Sorong Port in West Papua, Teluk Palu Port in Central Sulawesi, and Benoa Port in Bali.

Three out of the four ports are funded by SOEs, namely PT Pelabuhan Indonesia (Persero) or Pelindo, while the development of the Teluk Palu Port is financed through the State Budget.

Wahyu also mentioned that as of July 11, 2023, 5 projects have been completed out of the target of 30 PSNs for this year, leaving 25 projects that need to be completed in the remainder of the year.

“Our target for this year alone is 30, but 5 have been completed, so we hope for 25 additional projects to be completed this year,” said Wahyu.

TOLL ROADS AND DAMS

The Ministry of Public Works and Public Housing (PUPR) aims to complete 24 PSNs this year. Minister of PUPR Basuki Hadimuljono said the ongoing construction of 24 PSNs and industrial estate developments is targeted for completion in 2023 to enhance the nation's competitiveness and stimulate national and regional economic growth for sustainable prosperity for the people.


“The development of these infrastructures, aside from promoting balanced development and reducing regional disparities, also aims to boost the economy, create job opportunities, and increase the nation's competitiveness,” said Basuki in an official statement on Wednesday, July 19, 2023.

Out of the total 24 PSNs being built, Basuki mentioned that 15 of them are dam projects. The construction of several dams as PSNs is carried out to support water availability and national food security.

The following is a list of 24 strategic national projects (PSN) targeted for completion by the end of 2023:

1. Keureuto Dam in Aceh

2. Rukoh Dam in Aceh

3. Lausimeme Dam in North Sumatra

4. Margatiga Dam in Lampung

5. Karian Dam in Banten

6. Cipanas Dam in West Java

7. Leuwikeris Dam in West Java

8. Jlantah Dam in Central Java

9. Sidan Dam in Bali

10. Sepaku Sempi Dam in East Kalimantan

11. Temef Dam in East Nusa Tenggara

12. Tiu Suntuk Dam in West Nusa Tenggara

13. Ameroro Dam in Southeast Sulawesi

14. Pamukkulu Dam in South Sulawesi

15. Lolak Dam in North Sulawesi

16. Irrigation Network for Lempuing Irrigation Area in South Sumatra

17. Sigli—Banda Aceh Toll Road

18. Pasuruan—Probolinggo Toll Road

19. Cimanggis—Cibitung Toll Road

20. Cibitung—Cilincing Toll Road

21. Cinere—Jagorawi Toll Road

22. Lanud Halim Perdana Kusuma Housing Complex/Flats

23. Home Improvement Assistance (BSPS) to support the ASEAN Summit at Tana Mori and Labuan Bajo

24. Supporting infrastructures for the Batang Integrated Industrial Estate in Central Java

 

Previously, the Directorate General of State Assets Management (DJKN) reported that as of July 7, 2023, the State Asset Management Agency (LMAN) has disbursed funds amounting to IDR113.68 trillion for land acquisition for national infrastructure development.

Quoting information shared by DJKN on its official Instagram account @ditjenkn, the total funding for land acquisition is allocated to finance 114 national strategic projects (PSN).

“As of July 2023, LMAN has funded land financing for 114 PSNs with a total realization of IDR113.896 trillion,” said DJKN, as quoted on Sunday, July 16, 2023.

Toll road land acquisition financing contributes the highest amount with IDR96.45 trillion, which accommodates the acquisition of land for 52 toll road projects.

DJKN also recorded land acquisition funding of IDR 12.36 trillion for the construction of 38 dams and 9 railway lines worth IDR 3.08 trillion.

Additionally, IDR800 billion was allocated for the financing of one port, IDR610 billion for irrigation development, one clean water project worth IDR66 billion, and IDR85 billion for one National Tourism Strategic Area (KSPN).

Through DJKN and LMAN, the government has also disbursed IDR252 billion for land acquisition for the development of 6 projects in the Nusantara National Capital (IKN). (Lorenzo Anugrah Mahardhika/Afiffah Rahmah Nurdifa)

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