Gov’t Completes 92 National Strategic Projects
Date 29 Mei 2020
The Government has succeeded to complete 92 out of 223 National Strategic Projects, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.
“(Besides 92 projects), 27 projects have been constructed and are ready for operation, while 98 projects are being constructed, (6 projects are in negotiation process, red),” Airlangga Hartarto said after joining a Limited Meeting on Friday (29/5).
The Coordinating Minister added that the Government has certified 3.96 million parcels of land in the implementation of economic equity program.
“Legalization of transmigration lands program covers 84,653 hectares of land, while social forestry and rejuvenation of palm plantation programs cover 3.43 million and 15,814 hectares of land respectively,” he said.
Regarding the 35 gigawatt electricity program, 6,811 megawatt (MW) power plants in the program are in operation. Meanwhile, 20,168 MW are still under construction.
“Approximately 6,678 (MW) have obtained Power Purchase Agreement/PPA. Meanwhile, 829 MW are in the procurement phase, and 734 MW are in planning phase,” he stated.
He went on to say that projects categorized as ‘national strategic’ should play vital role for the economy and people’s prosperity, bring positive impact to job creation, social-economic condition of the people, and to environment sustainability.
“In line with other sectors, the projects are distributed nationally and support infrastructure development of industrial zones, economic growth areas, and tourist destination areas,” he said adding that the projects must also have investment value worth Rp500 billion, yet there are some projects with investment value under the ceiling that considered strategic and included in the national strategic projects.
On that occasion, the Coordinating Minister explained that from the new proposed 245 national strategic projects, 89 projects worth Rp1,422 trillion received recommendation. The 89 projects consisted of 56 new recommendation programs, 10 expansion projects, 15 new programs, and 8 electricity projects.
“In detail, there will be 15 roads and bridges development projects which will be explained by Minister of Public Works and Public Housing, 5 airport development projects amounting Rp5.66 trillion, 5 industrial zones project amounting Rp327.2 trillion, 13 dams and irrigation projects amounting Rp71.8 trillion, 1 sea dam project amounting Rp5.68 trillion, and 2 smelter development projects,“ he explained.
Airlangga further said that program of peatland expansion for agricultural area in Central Kalimantan is under preparation. The Government is also working on 5 seaport projects, 6 railway projects, 13 border area development projects, 13 energy projects, 6 clean water projects, 1 waste management project, and 3 technology advancement projects amounting Rp7.17 trillion.
“Thus, out of 245 proposed projects, 89 of which have been recommended,” he stated.
Based on regions, 7 projects worth Rp117 trillion are located in Sumatra, 25 projects worth Rp462 trillion are located in Java, 17 projects worth Rp144 trillion are located in Kalimantan, 8 projects worth Rp208 trillion are located in Sulawesi, 12 projects worth Rp28 trillion are located in Bali and Nusa Tenggara, Rp111 trillion of projects are located in Maluku and Papua, and remaining 11 projects worth Rp351 trillion are spread throughout the archipelago.
“Based on data from the Ministry of Public Works and Public Housing, each Rp1 trillion can direct and indirectly absorb 14,000 manpower. Thus, these projects are considered development projects,” he said.
The projects, he added, are predicted to absorb 4 million of workers each year for five continuous years (2020 – 2024).
“Therefore, the President wants the projects to create added value on foreign exchange saving, to increase export, and to create new jobs,” he stated.
The Coordinating Minister asserted that there are several highlighted projects, such as the development of oil refinery in Balongan, West Java. The project which attracted Taiwanese investor, is expected to save US$12 billion of foreign exchange since the refinery will be integrated with petrochemical industry.
Regarding the development of smelters in Weda Bay, Morowali, Konawe, this project will be carried on. According to the Coordinating Minister, foreign exchange projection of the project will increase from US$6 billion to US$9-10 billion on another year or two.
The project also absorbs a large number of workers. There are 40,000 workers in Morowali, and 11,000 workers in Konawe.
He added that the development of industrial zones in Brebes is also expected to attract Japan, South Korea, and the United States to relocate their industrial value chain to Indonesia.
In addition, Central Kalimantan will be promoted as a new food estate. Out of 164,598 hectares of land, 85,456 hectares have produced rice. The program will be expanded and intensified so that there will be more new food estates.
Regarding the Jakarta-Bandung, Bandung-Surabaya High-speed Rail project, the Coordinating Minister added that the project will be followed up by Minister of State-owned Enterprises (FID/EN)
Translated by : Rany Anjany
Reviewed by: Mia Medyana