National strategic projects to be evaluated

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Proyek strategis nasional bakal dievaluasi

9 January 2025

By Heru Febrianto

Jakarta, ID – Indonesian President Prabowo Subianto plans to evaluate the continuation of national strategic projects (PSNs) to ensure that infrastructure development more effectively targets and boosts economic growth.

This information was shared by House of Representatives (DPR) Deputy Chair Sufmi Dasco Ahmad at the seminar titled "Development of Indonesia in 2025: Hopes and Challenges," held in Jakarta on Tuesday (7/1). During the event, Dasco revealed that President Prabowo plans to evaluate PSNs that may not be significantly beneficial to the public.

“How will Prabowo address the small, everyday needs of the people? Additionally, how will he assess PSNs that are not significantly benefiting the community?” Dasco said as cited by Antara in Jakarta on Wednesday (8/1/2025).

While Prabowo has not specified which PSN will be evaluated, Dasco noted that this decision will likely spark debate among various groups. Despite the potential controversy, Dasco emphasised that President Prabowo Subianto remains committed to moving forward with this initiative, regardless of the risks involved.

“This may upset some parties, but Prabowo believes it is necessary to move forward,” he emphasised.

As his administration approached its conclusion, the Seventh Indonesian President, Joko Widodo (Jokowi), approved 14 new PSNs. These PSNs are designed to be funded by private investors, eliminating the need for support from the State Budget (APBN). Their objectives include accelerating downstreaming policies, enhancing connectivity, promoting national and regional economic development and equity, creating jobs, and receiving backing from sectoral ministries.

The 14 new PSNs are being developed across multiple regions, including Riau Islands, Banten, Jakarta, West Java, East Java, East Kalimantan, Central Sulawesi, and Southeast Sulawesi. These projects span various sectors and include eight industrial estates, two tourism areas, two toll roads, an education area, a research and technology centre, a health facility, and an offshore oil and gas project.

President Prabowo has consistently emphasised the crucial role of infrastructure development in boosting transportation and economic growth. He has expressed gratitude to everyone involved in bringing these projects to fruition. However, he insists that such development should always focus on benefiting the people.

“We need to remember that infrastructure is funded by the people. I want to reiterate, once again, that every rupiah from the people must be used for their benefit,” he emphasised.

The President also urged the Public Works Ministry and all parties involved in the projects to prioritise efficiency and quality in construction.

“Trust that everything is built according to the necessary standards. Ensure that efficiency and quality are upheld. Deliver the best so that the capabilities of the state and the nation are most beneficial to the people,” President Prabowo stated.

On target

On a different occasion, Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), emphasised the need for targeted infrastructure development as a means to boost economic growth. He aims for these efforts to enhance public welfare and fortify national development.

He noted that achieving the ambitious 8% economic growth target set by the Prabowo-Gibran administration requires substantial infrastructure support. These initiatives aim to enhance public welfare and strengthen national development.

“To achieve the ambitious 8% economic growth target, it is essential to have targeted infrastructure support,” AHY added.

Agus Harimurti Yudhoyono (AHY) made this statement during a focused meeting that included five key ministries under his supervision. These ministries are the Agrarian and Spatial Planning Ministry/National Land Agency, the Public Works Ministry, the Housing and Settlement Areas Ministry, the Transmigration Ministry, and the Transportation Ministry.

The infrastructure projects encompass various sectors, such as the construction of dams and irrigation networks, which are aimed at bolstering the agricultural sector. These initiatives are crucial for strengthening national food security and achieving food self-sufficiency.

“Transportation infrastructure—whether land, sea, air, or rail-based—plays a vital role in enhancing the mobility of passengers, goods, and services, which in turn helps reduce logistics costs,” AHY explained.

Agus Harimurti Yudhoyono emphasised the importance of effective spatial planning and land management at all levels—national, provincial, regency, and local. He pointed out that such practices are crucial for providing legal certainty and enhancing economic value across different regions. 

The development of housing and settlement areas is a major concern, given the current housing challenges. Approximately 10 million households do not own a home, and an additional 20 million households live in uninhabitable conditions. 

“We must look for a solution so that people in cities and villages can live decently and healthily,” AHY stated.

The development of transmigration areas across various regions is anticipated to establish new economic growth centres, thereby enhancing local welfare.

AHY emphasised the need to revitalise existing transmigration areas to accelerate economic growth in these regions.

He stressed that his party is advocating for balanced infrastructure development that provides benefits across all regions of Indonesia. 

“Also, how we want to provide ideal transmigration areas. This is the pilot project of the Coordinating Ministry for Infrastructure and Regional Development,” AHY added.

Revisit industrial estates

Yayat Supriatna, an urban infrastructure expert from Universitas Trisakti, emphasised the need for evaluating PSNs to ensure they effectively benefit a broad segment of the population.

“I think they must be evaluated, which ones benefit the population and which do not. If not, they will not be properly utilised,” he told Investor Daily.

According to him, PSNs are a strategy by the government to entice private sector investment by offering special incentives. “Integrated areas remain necessary as long as the private sector is interested in investing. However, there is a need to reassess industrial estates,” he revealed.

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