Indonesia has unveiled plans for the advancement of 14 new national strategic projects (PSN) as a cornerstone of its regional development-focused economic agenda, particularly aimed at infrastructure transformation. The details were discussed during an internal meeting presided over by President Joko Widodo, with relevant Ministers in attendance. The meeting also reviewed the progress of PSN implementation up to mid-March 2024, focusing on projects requiring specific directives for completion.
Spanning across Indonesia from Sabang to Merauke, the new PSNs encompass development initiatives across diverse sectors. These include eight industrial zones, two tourism destinations, two toll roads, and one each for education, research, technology, healthcare, and offshore oil & gas. The Government's prioritization of these infrastructure programs/projects is geared towards expediting the provision of infrastructure to boost local economic activities, address regional development disparities, and foster national economic advancement and growth.
Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto stated, "The scope of PSN itself is not only focused on physical infrastructure development but also ensuring increased economic equality, food supply, border development, technology, tourism and education". All the newly approved PSNs will be funded by private investors and do not rely on the State Budget support. They are designed to align with policies aimed at accelerating downstream, enhancing connectivity, fostering economic development and equality at both national and regional levels, generating employment opportunities, and garnering support from sector ministries.
One such PSN developed by the Government is the Green Area and Eco-City Development at PIK 2 which is located in Banten Province. The development of a green-based area is intended as a new green-based tourism destination aimed to increase attractiveness for tourists. This project, with an investment value of around IDR65tn, is expected to employ around 6,235 direct workers and 13,550 workers as a multiplier effect.
Considering that the strategic proposed location is close to the Seribu Islands National Tourism Strategic Area (KSPN) and Kota Tua – Sunda Kelapa, this project can open up business and investment opportunities, as well as create jobs for people in Banten Province and its surroundings. Apart from the above, one new PSN is the Bumi Serpong Damai Integrated Area Development which is estimated to have an investment of IDR 18.54tn. The development of this area will focus on 'education - biomedical - digital'. This project is said to align with plans to develop an Integrated Biomedical Campus in this area to support programmes and develop the quality of education and quality of health (medical) treatment nationally.
This area is slated for future development as a Special Economic Zone (KEK), focusing on advancing education, health research, digital economy, technology, healthcare, and biomedical services. The Biomedical Area in BSD is set to undergo development over the next three decades, with its initial milestone being the inauguration of the BioMedical Campus in 2024. Projections indicate that this project could, directly and indirectly, employ a workforce of 10,065 individuals and potentially save IDR 10.1 trillion in foreign exchange while generating earnings of IDR 5.6 trillion from the expansion of health and biomedical services.