Indef: PSN Agricultural And Industrial Sectors Must Be A Priority In National Development

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad said that national strategic projects (PSN) for the agricultural and industrial sectors must be a priority in national development.

"The PSN for the agricultural and industrial sectors must be a priority because these two sectors have many high benefits," said Tauhid, quoted from Antara, in Jakarta, Friday, January 12.

Multiplier effect is the economic impact caused by economic activity.

Tauhid explained that the agricultural sector PSN can increase agricultural production and productivity, so that it can improve people's welfare. In addition, the agricultural sector PSN can also encourage the growth of the agricultural product processing industry, so that it can create new jobs.

Meanwhile, he added that PSN in the industrial sector can increase the competitiveness of Indonesia's industry, as well as encourage economic growth inclusively, because it can absorb labor from various backgrounds.

Tauhid also emphasized the importance of PSN priorities based on the feasibility study and economic feasibility. This is to avoid inefficient and unsustainable development of PSN.

"Don't let the PSN that was built not provide economic multipliers, so that it becomes in vain." Ujar Tauhid.

Based on government data, as many as 190 PSN have been completed throughout 2023 with a total investment of IDR 1.515.4 trillion. By the end of 2023, there were 30 projects and 9 PSN programs that were partially operational.

Then, 50 other projects in the construction stage, 4 projects in the transaction stage, and 37 projects and 4 programs in the preparation stage.

Tauhid assessed that the National Strategic Project (PSN) has not been able to encourage economic growth inclusively and sustainably.

"This PSN is in the medium and long term, for now the impact is there but it's still very small, not nothing," said Tauhid

He explained that there are several factors that influence the utilization of PSN, one of which is the choice of the development sector. If the sector that is built does not have a significant economic impact, then the utilization will also be low.

Lebih lanjut Tauhid mengatakan, keberberlanjutan PSN di tahun 2024 masih menjadi hal yang penting. Untuk itu, dibutuhkan optimalisasi pemanfaatan PSN, dukungan pemerintah daerah dan kementerian/institution, serta skema pendanaan yang jelas pasca masa pemerintahan Presiden Joko Widodo.

"PSN must be in line with the development of economic centers at the regional level and must be related to the planning of each region," said Tauhid.

Tauhid hopes that the government can immediately overcome the problems faced by PSN so that it can have a significant economic impact on Indonesia.