Almost a Decade, INA-24 Navigation Project is Considered to Have Not Shown Acceleration

JAKARTA - The Aids to Navigation (AToN) project with the code INA-24 worth 97.1 million US dollars has again become the spotlight. The soft loan scheme from the Economic Development Cooperation Fund (EDCF) of South Korea with an interest rate of 0.15 percent per year, a 40-year tenor and a grace period of 10 years was originally designed to strengthen the Navigation Aids for Navigation (SBNP) in 24 strategic points in Indonesia.

However, almost a decade since it was signed in 2016, the project aimed at modernizing national maritime safety has not shown significant progress.

The Founding Secretary of Indonesian Audit Watch (IAW), Iskandar Sitorus, delivered a firm criticism of the slow realization of the project.

"On paper, this is an ideal project. The scheme is soft, the interest is very low, the tenor is long. But almost ten years have passed, the public has not seen a significant leap in progress," said Iskandar, Friday, February 13.

IAW assessed that the INA-24 issue was not merely technical, but concerned project governance and leadership. According to Iskandar, in one year of the new cabinet, measurable acceleration steps should have been seen.

"The first year of the new government is a phase of consolidation and correction. That's where management is tested. If it is still stagnant, it means there are structural problems that have not been resolved," he said.

IAW also highlighted the lack of an acceleration roadmap that was announced publicly to the public.

"We haven't seen any announcement of restructuring the project management, there has been no transparent schedule correction. Even though this project is financed by foreign loans, it means that there are ongoing fiscal obligations," he said.

Referring to the Financial Audit Report (LHP) of the Financial Audit Agency (BPK) on the Ministry of Transportation's Financial Report for 2023, internal control weaknesses were found in the implementation of projects sourced from foreign loans, including delays in the completion of navigation facilities.

"If the physical progress is not commensurate with the obligation to pay, what is at stake is not only the project schedule, but the fiscal credibility of the country. The debt is running, the interest is calculated," said Iskandar.

IAW reminded that INA-24 is part of the bilateral cooperation between Indonesia and South Korea, so the aspect of international reputation is also at stake.

"In international projects, the reputation of implementation is as important as the value of the contract. Repeated delays can affect lenders' confidence in Indonesia's readiness to manage the next project," he said.

Iskandar also touched on the importance of corrective steps as mandated in regulations related to strategic project management.

"If there is a significant deviation from the schedule, there must be periodic evaluations and corrective steps that are announced publicly. The public has a right to know," he said.

IAW also encourages the optimization of legal assistance by the State Attorney to provide certainty for officials in making decisions to accelerate projects.

"Don't let officials get caught in a dilemma. Move quickly for fear of administrative risks, move slowly at financial risk. The state that ultimately bears the burden," said Iskandar.

According to him, in the presidential system, the final responsibility lies with the head of the ministry who is responsible to the President.

"If a project has not been completed for almost a decade and in a year the new cabinet has not had a significant acceleration, then this is no longer about the legacy of the past. This is about current performance," he said.

For IAW, INA-24 is not just a maritime navigation project, but a test of management, fiscal credibility, and Indonesia's reputation in the eyes of international partners.