A Series Of Specialities For PIK And BSD After Becoming PSN

Bumi Serpong Damai (BSD) is one of the areas included in President Joko Widodo's National Strategic Project (PSN). (Sinarmas Land)

JAKARTA Determination of Pantai Indah Kapuk (PIK) Tropical Coastland and Bumi Serpong Damai (BSD) as National Strategic Projects (PSN) is still causing debate. What are the advantages obtained after the two areas entered PSN?

Previously, Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto said there were 41 PSN targeted for completion in 2024.

"Earlier, an internal meeting was related to the acceleration of the completion of national strategic projects. Cumulatively from 2016 to February 2024 195 national strategic projects have been completed and are fully operational at a value of Rp. 1,519 trillion, while 77 projects and 13 projects are in the construction or partial production stage or partial operations are valued at 2960.7 trillion," said Airlangga, quoted by Antara.

In addition to the 41 PSNs, Airlangga also reported 14 new PSNs with financing from the private sector, two of which were PIK Tropical Coastland and BSD.

"It was also reported to the President, 14 PSN whose period was only carried out by the private sector or the financing was purely from the private sector to create jobs and do not need the state budget and this was approved by the President," Airlangga continued.

PSN is a term that is quite often heard in the era of President Jokowi's administration from the first period until the end of the second period now. PSN was first launched in 2016 and designed with priority on infrastructure development that creates a multiplier effect for equitable community welfare. In addition, incoming projects are also expected to benefit the general public.

The latest rules regarding PSN are contained in Government Regulation of the Republic of Indonesia Number 42 of 2021 concerning Ease of National Strategic Projects.

The National Strategic Project is a project and/or program implemented by the Central Government, Regional Government, and/or Business Entities that have a strategic nature to increase growth and equitable development in the context of efforts to create work and improve community welfare.

Proyek pembangunan infrastruktur jalan tol, jalan nasional atau strategis nasional non-tol, sarana dan prasarana train antarkota, airport, port, program satu juta rumah, dan penyediaan infrastruktur air minum termasuk di antara proyek yang biasanya masuk dalam PSN.

Because it is considered strategic and beneficial to the community, PSN projects get a number of facilities and conveniences. These facilities are provided at the planning, preparation, transactions, construction, and maintenance stages.

"In addition to these facilities, ministries/agencies and local governments in the implementation of the National Strategic Project get easy procurement," the BPK Regulation page was quoted as saying.

In addition to regulating the provision of facilities for convenience, this PP also regulates the handling of social impacts from the existence of National Strategic Projects, solving legal problems in the implementation of National Strategic Projects, and reporting related to developments in the implementation of National Strategic Projects.

Likewise with BSD and PIK who will receive various privileges from the government. This is stated in PP No. 42 of 2021 concerning the Ease of National Strategic Projects.

The first advantage by being included in the PSN project is related to licensing. Projects that are included in the PSN have ease of licensing in the context of accelerating the planning process, preparation, transactions, construction, and smooth operation control, including the financing mechanism for the National Strategic Project.

This convenience includes the planning process, preparation, transactions, construction, operations and maintenance. This is stated in Article 2 Paragraph 3 of PP Number 42 of 2021.

Second, the PSN project has eased financing. Article 14 Paragraph 1 explains that PSN financing that does not use the APBN and APBD is supported by cooperation between the government and business entities (KPBU).

Not only that, projects that are included in PSN also receive government guarantees. "The government can provide government guarantees for national strategic projects whose financing comes from other legal financing in accordance with the provisions of the legislation," reads Article 18 paragraph 1.

Meanwhile, in Article 18 Paragraph 2, it is stated that government guarantees are also given in the form of credit or sharia financing, business feasibility, PPP, and/or political risks.

Fourth, the government is also ready to provide facilities in the form of handling social impacts on projects that are included in the PSN category. This convenience is related to social handling for communities directly affected by the development of PSN.

Early matters are contained in Article 45 paragraph 1 which reads "Ministers/heads of institutions, governors, and/or regents/mayors prepare programs and budgets for handling social impacts for communities directly affected by the implementation of national strategic projects".

Another benefit obtained by PSB is to get facilities in the form of ease of solving legal problems that may arise in the future. Article 46 Paragraph 1 explains that the administrative process will take precedence if there are reports or complaints from the public regarding irregularities or abuse of authority in the PSN.