7 National Strategic Projects Targeted for Completion This Year

infrastructure development

Indonesia’s endeavor to advance its infrastructure landscape is making significant progress, with 158 National Strategic Projects (PSN) successfully completed as of July 2023. The Government’s resolute commitment to bolstering the nation’s transportation sector is evident through its ambitious target of completing 7 additional PSN in this domain by the year’s end.

Leading the charge in this transformative mission is the Implementation Team of the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), represented by Chairman Wahyu Utomo. Notably, the completed NSPs boast an impressive combined value of Rp1,102.6 trillion, signaling a resounding step forward in Indonesia’s development trajectory.

The focus on the transportation sector is evident, with 7 national strategic projects dedicated to enhancing transportation and logistics targeted for completion within this year. Among them, the highly-anticipated Bandara Dhoho in Kediri, East Java, has garnered attention.

Noteworthy to mention is the collaboration between the government and the tobacco company PT Gudang Garam Tbk (GGRM) through a government-business entity cooperation (KPBU) scheme to bring this vital airport development to fruition.

Two other transformative railway projects, the Jakarta-Bandung High-Speed Railway (HSR) and the Jakarta Metropolitan Area Light Rail Transit (LRT) project, are poised to redefine transportation infrastructure.

On the auspicious date of August 18, 2023, both projects are set to be jointly inaugurated, signifying a remarkable milestone in Indonesia’s commitment to modernizing its railway systems. The Jakarta-Bandung HSR is being financed by state-owned enterprises (BUMN), while the Jakarta Metropolitan Area LRT project relies on a BUMN assignment scheme, exemplifying the Government’s strategic financial planning.

As Indonesia’s maritime connectivity continues to be a priority, four NSPs in the port sector are on track to revolutionize regional trade and development. Makassar New Port in South Sulawesi, Sorong Port in West Papua, Teluk Palu Port in Central Sulawesi, and Benoa Port in Bali are among the prominent projects designed to bolster maritime infrastructure.

Notably, three out of these four ports are benefiting from funding from PT Pelabuhan Indonesia (Persero) or Pelindo, emphasizing the pivotal role of state-owned enterprises in this nation-building endeavor. Additionally, the development of Teluk Palu Port has secured funding through the State Revenue and Expenditure Budget (APBN), exemplifying the Government’s comprehensive approach to financing vital infrastructure projects.

Chairman Wahyu Utomo expressed that as of July 11, 2023, a commendable total of 5 projects out of the targeted 30 NSPs for this year have been completed.

This progress underscores the Government’s relentless pursuit of timely project completion, and it is now poised to intensify efforts to see the remaining 25 projects finalized by the year-end. Wahyu’s statement serves as a rallying call for concerted action and a testament to Indonesia’s commitment to meeting its infrastructure goals.

While the nation celebrates the completion of these critical PSN, concerns have arisen from some quarters regarding the emphasis on toll road development. Notably, former Vice President Jusuf Kalla pointed out the need for a balanced approach, stressing that while toll roads are vital, attention to non-toll or free roads is equally crucial.

Acknowledging the success in constructing 2,600 kilometers of toll roads during Jokowi’s nine-year tenure, Kalla emphasized the significance of prioritizing regular road development. The disparities in road infrastructure, where damaged non-toll roads are left unrepaired, underscore the need for a holistic approach to infrastructure development, fostering equitable progress for all citizens.

As Indonesia advances in its infrastructure journey, the nation faces multifaceted challenges and opportunities. Striking a delicate balance between transportation development, maritime connectivity, railway modernization, and comprehensive funding approaches will be key to ensuring sustainable and inclusive progress.

The concerted efforts of the Indonesian Government, private sector stakeholders, and state-owned enterprises will play a pivotal role in driving transformative change and shaping the nation’s trajectory towards prosperity and socio-economic advancement.