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Spread throughout Indonesia from Sabang to Merauke, the new PSNs cover development in various sectors. They consist of eight industrial areas, two tourism areas, two toll roads, one education, research & technology, health, and one offshore oil & gas project.
Indonesia has announced the development of 14 new national strategic projects (PSN) as part of its main policies for the basis of regional development-based economic development, particularly in infrastructure transformation.
This was discussed in an internal meeting chaired by President of the Republic of Indonesia Joko Widodo on 18 March, attended by relevant Ministers, which also delved into the progress of the implementation of the PSNs until mid-March 2024 and the completion of the projects which specifically require direction.
Spread throughout Indonesia from Sabang to Merauke, the new PSNs cover development in various sectors. They consist of eight industrial areas, two tourism areas, two toll roads, one education, research & technology, health, and one offshore oil & gas project.
The prioritisation of infrastructure programmes/projects by the Government aims to accelerate the provision of infrastructure to increase community economic activity, overcome development disparities between regions, and encourage national economic development and growth.
Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto stated: "The scope of PSN itself is not only focused on physical infrastructure development, but also ensuring increased economic equality, food supply, border development, technology, tourism and education.
All of the new approved PSNs will be financed by private investors and do not require Anggaran Pendapatan dan Belanja Negara support. They are aimed at supporting policies to accelerate downstreaming, connectivity, development and equalisation of the national and regional economy, creating jobs, and receiving support from sector ministries.
One such PSN developed by the Government is the Green Area and Eco-City Development at PIK 2 which is located in Banten Province. The development of a green-based area is intended as a new green-based tourism destination aimed to increase attractiveness for tourists. This project, with an investment value of around IDR65tn, is expected to employ around 6,235 direct workers and 13,550 workers as a multiplier effect.
Considering that the strategic proposed location it is close to the Seribu Islands National Tourism Strategic Area (KSPN) and Kota Tua – Sunda Kelapa, this project can open up business and investment opportunities, as well as create jobs for people in Banten Province and its surroundings.
Apart from the above, one new PSN is the Bumi Serpong Damai Integrated Area Development which is estimated to have an investment of IDR 18.54tn. The development this area will focus on 'education - biomedical - digital'. This project is said to align with plans to develop an Integrated Biomedical Campus in this area to support programmes and develop the quality of education and the quality of health (medical) treatment nationally.
This area will also later be developed into a Special Economic Zone (KEK) which will develop education, health research, digital economy, technology development, health, and biomedical services. The development of the Biomedical Area in BSD is targeted for the next 30 years, with its first milestone being the Grand Opening of the BioMedical Campus in 2024.
This project is also estimated to be able to employ a workforce of 10,065 people directly and indirectly with estimated foreign exchange savings of IDR10.1tn, and foreign exchange earnings of IDR5.6tn, from the development of health and biomedical services.
Lead image / Coordinating Ministry for Economic Affairs (Kementerian Koordinator Bidang Perekonomian Republik Indonesia)
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