Indonesia is gearing up for a significant milestone as President Joko Widodo, commonly known as Jokowi, wraps up his leadership this year. Throughout his tenure, Jokowi has placed a strong emphasis on advancing infrastructure across the nation through his flagship program, the National Strategic Projects (PSN). A remarkable 195 PSNs have been completed since 2016, with Jokowi recently adding 14 more to the list.
The National Strategic Projects have been a cornerstone of Jokowi’s administration since 2016. These projects were initiated to address infrastructure deficits and spur investment following the global crisis. But what exactly are these National Strategic Projects?
What is the National Strategic Projects (PSN)?
According to reports, the concept of National Strategic Projects was first outlined in the National Medium-Term Development Plan (RPJMN) 2015-2019. The focus was on massive and significant infrastructure development necessary to accelerate national economic growth.
The RPJMN 2015-2019 prioritized policies aimed at developing essential infrastructure and connectivity. This included improving water supply and national sanitation services, enhancing transportation networks, expanding urban road networks, and ensuring energy accessibility.
Funding for these projects comes from various sources, including the government, public-private partnerships, state-owned enterprises, and the private sector. To expedite project realization, President Jokowi issued Presidential Regulation No. 3 of 2016 on the Acceleration of National Strategic Project Implementation.
This regulation defines National Strategic Projects as initiatives undertaken by the government, regional governments, and/or businesses deemed strategic for economic growth and development, aimed at enhancing public welfare and regional development.
During his second term, Jokowi introduced new regulations regarding PSNs, outlined in Government Regulation No. 42 of 2021 concerning the Facilitation of National Strategic Projects. These regulations focus on both physical and non-physical development crucial for regional economic growth.
195 National Strategic Projects (PSN) Completed
Minister of Economic Affairs, Airlangga Hartarto, stated that cumulatively from 2016 to February 2024, 195 PSNs have been completed and are fully operational with a value of Rp 1,519 trillion.
“Meanwhile, 77 projects and 13 projects are in the construction or partial operation phase, with a value of Rp 2960.7 trillion,” said Airlangga at the Presidential Palace Complex on Monday, March 18, 2024, as quoted by VIVA.
He further mentioned that 41 PSNs were completed in 2024, with 5 projects completed from January to March, 24 projects from April to September, and 12 projects from October to December. “Then, 36 PSNs will be completed from April to December,” he said.
Additionally, Airlangga reported several issues to President Jokowi regarding spatial planning procurement until the end of 2024, requiring support from all stakeholders, such as the Gilimanuk-Mengwi Toll Road, PSN development in the Fakfak fertilizer industrial zone, and the integrated industrial zone in Batang.
Meanwhile, Minister of Public Works and Public Housing (PUPR), Basuki Hadimuljono, revealed progress in completing PSNs, especially within the Ministry of PUPR. He stated that there are 32 projects scheduled for completion in 2024.
Basuki mentioned that the remaining projects will be completed after 2024, specifically in 2025 and 2026. “There are 39 PSNs that are not yet completed because they were only instructed in 2023. The Karangnongko Dam, Cibeet Dam, Cijurey Dam, which started in 2023, and others related to PSNs in the Ministry of PUPR,” he explained.
Adding 14 PSN This Year
Minister of Economic Affairs, Airlangga Hartarto, stated that President Joko Widodo (Jokowi) has approved 14 new national strategic projects. These projects will be fully undertaken by the private sector.
“And also reported to Mr. President, there are 14 new strategic projects, the period is carried out by the private sector or financed by the private sector, creating jobs and not requiring state budget funds. This was approved by the President,” explained Airlangga on the same occasion.
Airlangga outlined the 14 new strategic projects as follows:
- Development of the Indah Kapuk Tropical Concept Beach
- Development of the Wiraraja Industrial Estate on Pulau Galang
- North Hub Development Project Offshore East Kalimantan
- Development of the Neo Energy Parimo Industrial Estate in Central Sulawesi
- Patimban Industrial Estate in Subang
- Development of the Giga Industrial Park Industrial Estate in Southeast Sulawesi
- Development of the Kolaka Resource Industrial Estate in Southeast Sulawesi
- Development of the Stargate Astra Industrial Estate in Southeast Sulawesi
- Development of the Surabaya Waterfront Coastal Area
- Development of the Neo Energy Morowali Industrial Estate in Central Sulawesi
- Integrated Development Area in Bumi Serpong Damai (BSD)
- Development of the Toapaya Bintan Industrial Estate in Riau
- Development of Toll Roads in Section Harbour Road II North Jakarta
- Development of Inner City Toll Roads in Bandung
These new projects reflect Indonesia’s ongoing commitment to infrastructure development and economic growth. By involving the private sector, the government aims to expedite project implementation while creating employment opportunities and fostering sustainable development.
President Jokowi’s tenure has been marked by a strong emphasis on infrastructure development, and the completion of numerous national project signifies significant progress towards achieving national development goals. As Indonesia continues to prioritize infrastructure investment, it is poised to further enhance its economic competitiveness and improve the quality of life for its citizens.
The addition of these 14 new projects demonstrates Indonesia’s determination to continue its infrastructure development agenda, paving the way for sustained economic growth and prosperity in the years to come. Through strategic partnerships and targeted investments, the country aims to address infrastructure gaps, promote inclusive development, and unlock its full potential as a dynamic and resilient economy.
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