ID govt approves 14 new national strategic projects to boost economy

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The Indonesian Government has approved 14 new national strategic projects (PSNs) to increase community economic activity, overcome development inequalities between regions, and encourage national economic development and growth.

PSNs are projects that have a high investment value and broad economic impact on infrastructure such as roads, ports, railways, airports, dams, energy, electricity, health, and telecommunications sectors, the ministry for economic affairs said in a statement.

Additionally, the scope of PSN itself is not only focused on physical infrastructure development, but also ensures increased economic equity, food supply, border development, technology, tourism to education, according to coordinating ministry for economic affairs spokesman Haryo Limanseto.

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In an internal meeting chaired by the president of Indonesia, Joko Widodo, and attended by relevant ministers at the state palace last week, approval was given for 14 new PSN proposals.

It said that for all new PSNs approved, financing will come from private investors and is intended to support downstream acceleration policies, support connectivity, support national and regional economic development and equity, create jobs, and get support from sector ministries.

Furthermore, every PSN proposal submission must be supported by a ministerial commitment letter along with funding plans, study results and an action plan which will then be evaluated.

The results of the evaluation will be further studies by relevant committees before being submitted finally to the president.

This makes it possible for all ministries, institutions and regional governments, to propose new PSNs and will prove that a complete study of all aspects from all stakeholders has been conducted before the PSN status is granted, explained Limanseto.

The development of these14 new PSNs will be carried out in a number of regions, namely in Riau Islands, Banten, DKI Jakarta, West Java, East Java, East Kalimantan, Central Sulawesi, and Southeast Sulawesi. Covering development in various sectors, the 14 new PSNs consist of industrial estates, tourism areas, toll roads, education, research and technology, health, and offshore oil and gas projects.

One of the new PSNs projects developed by the government is the development of a Green Area and Eco-City at PIK 2 located in Banten Province. The development of a green-based area with an area of approximately 1,756 Ha is called "Tropical Coastland" and is intended as a new green-based tourism destination to increase attractiveness for tourists.

This tourism destination is also designed to accommodate the Mangrove Tourism Area which is a natural coastal security mechanism. The project has an investment value of around RP65 trillion and is expected to absorb around 6,235 direct workers and 13,550 workers as a multiplier effect.

The PIK 2 area will later be connected to the Kamal-Teluknaga-Rajeg Toll Road which began work in 2023.

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