Problematic projects will be removed from the PSN list
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 bermasalah bakal dicoret dalam daftar PSN
28 January 2025
By Heru Febrianto
President Prabowo Subianto's administration will evaluate the list of national strategic projects (PSNs) established during President Joko Widodo's (Jokowi) tenure. The evaluation will determine whether these projects will continue or be removed from the PSN list.
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono will review the projects in the PSN list.
AHY stated this in response to the status of the Gilimanuk-Mengwi toll road project, which began during the tenure of Bali Governor Wayan Koster but have yet to progress.”Later, it will be reviewed and reviewed again,” said Coordinating Minister for Infrastructure and Regional Development Agus, as cited by Antara in Jakarta on Friday (24/1/2025).
AHY stated that, based on President Prabowo Subianto's directive, the decision to retain or remove a PSN from the list depends on its progress. If a project is deemed problematic, such as being inefficient, the government will not hesitate to remove it from the PSN list.
“Other issues will also be considered. No matter what, they must be carried out on target. We must also see and consider the efficiency aspect. He always emphasises the importance of preventing any leaks,” he stated.
Regarding the Gilimanuk-Mengwi toll road project in Bali, AHY also stated that the responsibility for sorting PSNs is not solely under the authority of the Coordinating Ministry for Infrastructure and Regional Development, but also involves the Coordinating Ministry for Economic Affairs and other relevant ministries.
He guarantees that the 280 PSNs from President Joko Widodo's era will be reviewed individually to determine their continuity.
“The goal is to ensure that each one is focused and motivated. PSNs must be genuinely strategic to positively impact economic growth and public welfare. We will identify and address any issues,” the Coordinating Minister for Infrastructure and Regional Development stated.
Until now, he has been unable to determine the continuity of the toll road PSN in Bali or other potential projects in Bali on the list. However, AHY will continue projects that show progress and make necessary adjustments as required.
Previously, on a separate occasion, Coordinating Minister for Infrastructure and Regional Development AHY revealed that President Prabowo Subianto directed a thorough evaluation of the PSN list. "He indeed asked us to conduct a comprehensive review. He also expressed his desire to be directly involved, as it should have been," AHY stated at the Presidential Palace in Jakarta on Tuesday (24/1).
AHY stated that the government will continue to evaluate, receive input, and review PSNs to ensure the projects are progressing as planned. "The government consistently evaluates, receives input, and reviews to determine which projects are on track and which ones need correction or adjustment," he said.
According to AHY, PSNs involve many parties, not only the Coordinating Ministry for Infrastructure and Regional Development, but also the Coordinating Ministry for Economic Affairs and various other technical ministries.
AHY said that his agency and other technical ministries will evaluate ongoing PSNs. “PSNs involve many parties, including ministries and institutions, such as other coordinating ministries, not only Coordinating Ministry for Infrastructure and Regional Development,” he added.
Periodically evaluated
Meanwhile, Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso mentioned that his agency is periodically evaluating the development of PSNs with growth rates below 10%.
He mentioned that Ecowisata Tropical Coastland, a PSN on the north coast of Tangerang, Banten, has recently been highlighted for evaluation. "The evaluation of the PSN has been completed. Now, it is currently being followed up to all technical ministries and institutions that provided recommendations," Susiwijono said in Jakarta on Thursday (23/1).
His agency is also requesting the technical ministries that provided recommendations to follow up on the evaluation results by conducting technical assessments and offering their feedback for the PSN's completion.
“For the Ecowisata Tropical Coastland PSN that was recommended by the Tourism and Creative Economy Minister at the time. Therefore, we are currently requesting technical evaluations from the Tourism Ministry,” he stated.
The Coordinating Ministry for Economic Affairs Secretary added that the evaluation of all PSNs will be conducted in accordance with conditions that mandate periodic assessments, following President Prabowo Subianto's directive to evaluate PSNs.
"Especially for PSNs with a low completion rate, the ministry that provided the recommendation will be asked to conduct a technical evaluation and offer a continuity recommendation," he emphasised.
Evaluations will be conducted for all PSNs, including those completed or operational in 2025 and beyond.
Technical evaluations and continuity recommendations will be requested from all ministers and governors who proposed or provided a technical recommendation for a PSN.
A similar statement was also revealed by Coordinating Minister for Economic Affairs Airlangga Hartarto. He emphasised that all PSN will be evaluated thoroughly. “All PSNs will be evaluated,” he stated.
However, Airlangga said that Pantai Indah Kapuk (PIK) 2 in Tangerang, Banten is not a PSN. The PSN is the Pantai Indah Kapuk 2 area is only the Tropical Coastland development. “PIK 2 was never a PSN. The PSN is the Tropical Coastland,” he stated.
Infrastructure continuity
On a separate occasion, House of Representatives (DPR) Commission V Chair Lasarus emphasised the importance of maintaining consistency in infrastructure development in Indonesia. He reminded that the infrastructure projects undertaken during President Jokowi's 10-year administration must be continued by the next administration. He acknowledged that maintaining consistency in infrastructure development is no easy feat.
“We aim to maintain our consistent efforts to improve infrastructure, facilitating the mobility of goods and passengers during crucial periods such as Christmas, New Year, Eid, and regular days,” Lasarus said in press statement.
Additionally, Lasarus mentioned that excellent infrastructure will positively impact Indonesia's competitiveness by reducing production costs and creating opportunities for higher economic growth.
