Indonesia: Government slashes number of strategic projects

  • The government has announced that it will slash the number of National Strategic Projects (PSN), mostly related to infrastructure, from 245 to 222.
  • Coordinating Economic Minister Darmin Nasution said in Jakarta on 16 Apr 18 that certain projects could be maintained in the list of strategic projects because their construction could start in 3Q19.
  • “We have invited related ministers to [check their] progress. If the ministers say the projects could not be implemented by 3Q19, it is the job of the next government to carry out evaluations,” Darmin said after a meeting on project evaluations at the State Palace.
  • Darmin did not list all the projects that were dropped but mentioned several examples, including the railway track from Jambi to Palembang in South Sumatra, railway tracks in East Kalimantan, clean water facilities in North Sumatra, a dam in Pelosika in Central Sulawesi and a special economic zone (KEK) in Merauke, Papua.
  • The 222 projects that will be maintained are 69 roads, 51 dams, 29 industrial and tourist zones, 16 railways, 11 energy projects, 10 seaports, eight clean water and sanitation facilities, six airports, six irrigation systems, six smelters, four technological projects, three housing projects, one agriculture-fishery project, one sea dike and one educational project.
  • Meanwhile, the three programs to continue are the electricity program, airplane program and the agrarian economic equality program.

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