PSN Financing On Java Island Is Still Dominated By The KPBU Scheme, This Is Minister Basuki's Explanation

JAKARTA - Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono said that the financing of national strategic projects (PSN) on the island of Java is dominated by government cooperation schemes and business entities or KPBU.

"In Java, most investments or PPPs are mostly for outside Java through assignments. So, it's fair that all of them use the APBN in Java, which is outside Java, they don't get it," Basuki said at the Conference on National Strategic Projects (PSN) event in Jakarta, on Wednesday, July 26.

Basuki revealed that in PSN financing there are three main schemes, namely the APBN scheme, KPBU, and assignments through state-owned companies.

For the APBN scheme, PSN funding has reached Rp47.56 trillion to date. The highest funding is used in the drinking water supply system (SPAM) sector which absorbs a budget of up to Rp37.3 trillion.

As for the KPBU scheme, PSN's total funding was recorded at IDR 151.44 trillion. Funding through this scheme has financed 20 toll road projects of IDR 150.42 trillion and 3 SPAM projects recorded at IDR 1.02 trillion.

Then, the third scheme used in the PSN project is the assignment scheme through state-owned companies. It is noted that the total financing of PSN through the SOE assignment scheme has reached IDR 53.24 trillion, to date. The scheme is only used for toll road sector financing, including 7 toll road road projects with a total funding of IDR 53.24 trillion.

Furthermore, said Basuki, the alternative financing scheme can also strengthen cooperation between many parties, especially the government and the private sector. Alternative financing schemes have realized many infrastructures, so that they can be completed without burdening the state budget too much.

"It is impossible to do it only with the state budget, but also to involve the role of the private sector in creating a business," he said.

Just so you know, until July 2023, the Ministry of PUPR has completed 87 National Strategic Projects (PSN) from the 125 PSN target mandated by the Coordinating Ministry (Kemenko) for the Economy.

The 87 PSNs that have been completed consist of 36 dams, 2 irrigation projects, 27 toll roads, 4 non-toll roads, 3 drinking water supply systems (SPAM), 7 housing projects, 7 national cross-border gates (PLBN), and 1 education infrastructure.