National Strategic Projects Need To Be Continued For The Development Of Indonesia Gold 2045

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Antara)

JAKARTA - The government has prepared a National Long-Term Development Plan (RPJPN) 2025-2045 to transform towards Indonesia Gold 2045. The government is also targeting the achievement of per capita income equivalent to developed countries of around US$23,000 to US$30,000 by 2045.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the 2025-2045 RPJPN will still focus on infrastructure development by optimizing infrastructure to be built through the development of downstream industrial areas.

Furthermore, and will be connected to connectivity infrastructure, to maintain IKN continuity as a national economy superhub, energy transition to Net Zero Emission commitment, maintain central and regional development consistency, and orchestrate all development actors who not only focus on the Government, but also on the private sector and the general public.

Airlangga said that Indonesia's investment indicators currently show positive results with the Manufacturing PMI index recording consistent growth for 25 consecutive months and currently at 52.3, investment realization in the third quarter also reached Rp374 trillion, and from the banking side that working capital credit also grew positively.

"These indicators are of course greatly influenced by the Government's policies, including for the PSN Infrastructure program and the Special Economic Zone (SEZ)," said Airlangga in his statement, Friday, October 27.

Airlangga conveyed this in accordance with the direction of President Joko Widodo since 2021, the direction of infrastructure development, especially the National Strategic Project (PSN) must prioritize non-APBN projects supported by the Ministry/technical institutions and support economic strengthening policies.

This is in line with the mandate of the 2020-2024 National Medium-Term Development Plan (RPJMN) which identifies infrastructure investment needs of IDR 6,445 trillion, where the APBN is only able to provide IDR 2,385 trillion or 37 percent of the total budget needs.

"This means that infrastructure financing still requires other sources, such as the Cooperation scheme between the Government and Business Entity (PPP). For example, the development of Industrial Estates (KI), the acceleration of the Smelter Program, and the construction of SEZs," he said.

Based on the Regulation of the Coordinating Minister for the Economy Number 7 of 2023 there are 211 projects and 13 programs in the PSN list with an estimated total investment value of IDR 5,746.9 trillion.

Airlangga said the projects were spread across several sectors including the construction of connectivity infrastructure such as ports, toll roads, trains, and airports, increasing energy security, developing areas and downstreaming industries, and providing basic infrastructure.

The acceleration of PSN development certainly cannot be separated from the debottlenecking efforts through facilities provided by the Government, such as land acquisition acceleration facilities and provided with financing facilities. The government has also prepared a draft regulation for non-APBN financing schemes such as Limited Procession Scheme and Land Value Capture Rights.

Airlangga hopes that PSN can be continued where this will become our homework in the future, namely how to socialize all these achievements to the public, in order to get their support, so that the program can be continued.

"We can convey more simply to the public about the achievements of PSN. Many other lessons learned have been achieved by Indonesia which must also be recorded, including the success of handling the Covid-19 pandemic and Pre-Employment Cards," said Coordinating Minister Airlangga.