Infrastructure: Strategic project implementation 2019
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.
Kompas: Infrastruktur: Pelaksanaan Proyek Strategis pada 2019
30 July 2018
Jakarta, Kompas — The government has determined as many as 223 national strategic projects and 3 national strategic programs. By being national strategic projects, they must start construction in the third quarter of 2019 at the latest. The determination is made following the issuance of Presidential Regulation No. 56 of 2018.
“Presidential Regulation No. 56 of 2018 is the revision of the previous presidential regulation regarding National Strategic Projects. In line with the directive [of the president], ministries or agencies are expected to push those projects to reach financial close or start construction by the third quarter of 2019,” said the Director of the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) Program, Rainier Haryanto, Sunday (29/7/2018), in Jakarta.
The projects in the national strategic project list include toll road construction (64 toll segments), dam and irrigation network construction (57 projects), as well as new port construction and capacity expansion projects (10 projects). In addition, there are also 3 programs in the list, namely electricity infrastructure program, aviation industry program, and economic equity program.
According to Rainier, for toll road construction projects listed as national strategic projects (PSN), there is another condition, that is to say land acquisition must start in the third quarter of 2019 at the latest. In 2016, as many as 20 strategic projects worth Rp33.3 trillion have been completed. In 2017, 10 strategic projects worth Rp61.5 trillion have also been completed. From this year to 2019, 38 projects are set to be completed.
No Changes
Separately, Head of Centre for Dam Development of the Public Works and People’s Housing (PUPR) Ministry, Ni Made Sumiarsih, said dam construction projects in the PSN list this year see no changes from the previous PSN list. This year the government plans to build 11 new dams.
Until 2017, 9 dams had completed their construction. “At present 34 dams are under construction. This year eight dams are scheduled for completion,” said Sumiarsih.
Meanwhile, the Research Director of Core Indonesia Mohammad Faisal said infrastructure construction planning should be done alongside the planning of new regional economic centre development. “By doing so, the multiplier effect can be directly felt by the society, such as increase in people’s income. However, so far, I haven’t seen that,” said Faisal.
