Airlangga Hartarto: PSN Settlement Leads To Social And Economic Multiplier Effects

Airlangga Hartarto emphasized that the government should accelerate the national strategic project (PSN). (special photo)

JAKARTA - Accelerating the development of National Strategic Projects (PSN) according to Coordinating Minister for the Economy Airlangga Hartarto is the current government's priority. The problem is that completing civil servants can create a multiplier effect socially and economically.

The government continues to work hand in hand to control the impact of the Covid-19 pandemic in line with national economic recovery efforts. The Covid-19 pandemic and its variants are still a challenge for the global economy in the short term. Meanwhile, the issue of climate change, the energy crisis, is still a challenge for the global economy in the long term.

Taking into account these conditions, the existence of the National Strategic Project has proven to increase investment and create jobs for all Indonesian people. In the midst of the pandemic, the completed National Strategic Projects have created more than 11 million direct and indirect workers.

"In addition, investment in the development of National Strategic Projects (PSN) in various sectors has benefits for regional development and the regional economy, as well as industrial value added. On the other hand, we hope that the completion of the PSN can create a social and economic multiplier effect that will continue to grow along with the acceleration of the completion of various strategic projects in the future," said Coordinating Minister for the Economy Airlangga Hartarto in giving a keynote speech at the Media Gathering of the Committee for the Acceleration of Infrastructure Provision. Priority (KPPIP) entitled Acceleration of PSN Implementation to Support Post-Pandemic National Economic Growth which was held virtually, Wednesday 15 December.

The development of PSN which is spread across various regions, this seeks to improve the quality and quantity of infrastructure in Indonesia, which can indirectly reduce the gap in the growth of income per capita and welfare between regions in the long term.

The acceleration of the completion of various National Strategic Projects will continue to be carried out in the coming years. KPPIP will continue to oversee and make efforts to resolve problems in the implementation of 208 projects and 10 programs that are included in the PSN list.

To achieve the vision of an Advanced Indonesia 2045, the Government of Indonesia is aware of several challenges that must be met, including meeting the needs for infrastructure spending as a support for economic growth. The limitations of the Indonesian State Revenue and Expenditure Budget (APBN) encourage the government to be able to cooperate and collaborate with the private sector in meeting infrastructure spending needs in the 2020-2024 period.

"The government is also committed to encouraging and increasing project financing efforts through creative financing for National Strategic Projects in order to reduce the burden on the State Budget to meet infrastructure needs," said Coordinating Minister Airlangga.

Various regulations were also drafted to accelerate the completion of strategic projects. These include Government Regulation (PP) Number 42 of 2021 concerning Ease of National Strategic Projects and Presidential Regulation (Perpres) Number 66 of 2020 which mandates KPPIP to coordinate with the State Asset Management Agency (LMAN) to support the acceleration of the land acquisition process. In addition, there are several other regulations as Derivative Regulations from Law Number 11 of 2021 concerning Job Creation.

“We all hope that the economic recovery during and post-pandemic will get better in the future. The government is committed to continuing to support the acceleration of the work on national strategic projects (PSN) in order to maintain consistent economic growth going forward," concluded Airlangga Hartarto.