DIGIVESTASI - The Coordinating Ministry for Economic Affairs commented on why the Bumi Serpong Damai (BSD) and Pantai Indah Kapuk (PIK) 2 development projects were given State Strategic Project (PSN) status. The decision was made in an internal meeting held at the State Palace on March 18.  BSD is a project of Sinar Mas Land Group or PT Bumi Serpong Damai Tbk (BSDE). Meanwhile, PIK 2 is the continuation of a joint venture between Salim Group (SG) and Agung Sedayu Group (ASG) owned by conglomerate Aguan. 

Spokesperson for the Coordinating Ministry for Economic Affairs Hariyo Limanset said that the determination of the 14 new PSNs must go through a series of considerations. The projects include development in various sectors, consisting of eight industrial estates, two tourism areas, two toll roads, one education sector, research and technology, health, and one offshore oil and gas project. 

In addition, there are a number of objectives that are prioritized for the development of the 14 projects. These goals include economic equality based on regional development, expansion of employment opportunities, collaboration of development sectors, and involvement of the private sector in self-financing (non-APBN). 

"PSN BSD aims to advance the education, biomedical, and digital sectors with the support of the Ministry of Health," Haryo said in a written statement last Wednesday.
 

Mr. Haryo explained that the total investment in PSN-BSD is estimated at Rp 18.54 trillion. The project is estimated to absorb 10,065 workers, save foreign exchange of Rp10.1 trillion, and bring in foreign exchange of Rp5.6 trillion.

Meanwhile, PSN PIK 2 targets the green tourism sector, especially coastal mangrove tourism areas supported by the Ministry of Tourism and Creative Industries (Kemenparekraf). The total investment in PSN PIK 2 is estimated to reach Rp 65 trillion. He added: "It is expected to accommodate 6,235 direct workers and 13,550 multiplier workers."

Claiming there is no political element

Haryo also emphasized that there is no political element in decisions related to the two projects carried out by Indonesian-owned companies. The decision-making process should be based on the results of a thorough study.

"There are no non-technical (political) considerations in decision-making in deciding PSN projects. All decisions are based on complete research results and clear parameters," Haryo said.

He explained that the proposal for PSN participation projects is open to all interested parties. This proposal can be submitted through the Ministry / Authority (KL) and BUMN / D with a bottom-up process. All proposals will then be further reviewed and analyzed by the Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP).

"Not all proposed infrastructure projects are immediately approved as PSN," he said. He explained that APBN and APBD funds will not be used for PSN development, but will be obtained from the private sector. The government's role is to help simplify licensing so that projects can be implemented immediately and have a significant impact on society. 

"This simple licensing process is very much in line with national ideals to provide comfort and security guarantees to economic actors and is one of the government's keys to increasing national competitiveness," Haryo explained.  The overall evaluation of PSN projects involves several stages, from continuous monitoring to impact assessment. There are several important issues that need to be followed up in the implementation of PSN, including issues related to land acquisition and spatial planning, licensing, development, and financing. 

"The government will certainly continue to monitor existing developments and encourage the timely completion of PSN. The management of PSN by the Coordinating Ministry for Economic Affairs will be very transparent and accountable. their decision, there is a widespread conflict of interest," he concluded. For additional information, from 2016 to February 2024, there are 195 fully functional PSN with a value of Rp 1,519 trillion. In addition, 77 projects and 13 programs worth Rp 2,960.7 trillion are under construction or partially operated, and 41 PSNs are expected to be completed by 2024.

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