JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto as Chair of the Committee for the Acceleration of Priority Infrastructure Development (KPPIP) on a marathon basis.
Coordination meetings are held alternately with the Governor of West Java, the Deputy Governor of East Java, the Governor of Central Java and the Ministers / Heads of the relevant Government Institutions. The meeting was aimed at encouraging the acceleration of the implementation of Presidential Regulations Number 79 and 80 of 2019 and Presidential Regulation Number 87 of 2021, related to the Acceleration of Economic Development in the Regions in the three Provinces, namely the Tambourine Area and Southern West Java Region, East Java Region. North and South, and the area in Central Java.
In the first meeting, the Coordinating Minister for the Economy conveyed the results of the evaluation of 218 Projects/Programs in East Java which were included in Presidential Decree No. 80 of 2019 with an investment value of Rp. 294.3 Trillion.
In the second Coordination Meeting, the results of the evaluation of 170 Projects/Programs in West Java included in the scope of Presidential Regulation No. 87/2021 with an investment value of Rp. 370.93 Trillion were presented. Central Java, which is included in the scope of Presidential Regulation Number 79 of 2019 with an investment value of IDR 354 trillion.
Coordinating Minister Airlangga emphasized the importance of completing projects that require State Budget support for the 2023/2024 fiscal year so that these projects can be completed in a maximum of 2024.
"It is necessary to encourage the support of Ministries/Agencies and Local Governments so that projects can be completed in 2024. There are 27 projects in West Java worth IDR 2.53 trillion that require APBN support, the completion of 28 projects in Central Java worth IDR 4.92 trillion that requires an allocation The state budget from the relevant ministries/agencies, as well as the completion of 13 projects in East Java worth Rp. 2.35 trillion that require a state budget allocation from the ministries/agencies targeted for completion in 2024," said Coordinating Minister Airlangga.
In addition, Coordinating Minister Airlangga also emphasized that the Central Government will encourage the acceleration of the completion of projects/programs that are targeted for completion of construction by 2024 or have fulfilled the Financial Closing for projects with PPP schemes.
Deputy Governor of East Java Emil Dardak, representing the East Java Provincial Government welcomed the acceleration of the implementation of Presidential Regulation Number 80 of 2019, as an effort to increase Economic Growth in East Java after the Covid-19 pandemic. In this regard, the Coordinating Minister for the Economy conveyed several projects that were highlighted and prioritized, including:
The construction of the Ngawi – Bojonegoro – Tuban – Lamongan – Manyar – Bunder Toll Road to support the operational activities of the Tuban Oil Refinery and the JIIPE SEZ which is one of the anchors that support the community's economic activity, is directed to immediately encourage transactions (determination of BUJT) and Financial Closing in 2023 The Ministry of Finance is also expected to start budgeting procurement allocations through LMAN in 2023;
Kali Lamong Flood Control as a Strategic Project with National Impact for flood management in East Java, is directed to immediately allocate land procurement support by the Ministry of Finance in the amount of Rp 1.1 Trillion;
The construction of the Karangnongko Weir, which is one of the strategic programs to support Food infrastructure and Flood Control, especially in the Central Java and Southern East Java Regions, is encouraged to immediately complete the land acquisition by the Bojonegoro Regency Government and the East Java Provincial Government in 2023, so that the Ministry of PUPR can start budgeting and start construction as soon as 2023;
Umbulan SPAM, a project to increase the availability of clean water and drinking water, the Ministry of PUPR has committed to support it through DAK funds in 2022/2023, especially for distribution network infrastructure;
Bagong Dam, as a priority project for the provision of clean water for the community and poverty alleviation, the direction is that the best solution is sought for the relocation of the community; as well as
The construction of the Cable Car in Batu City and the Development of the Ropeway at the peak of Pananjakan Bromo Crater, as a project to support accessibility and tourism in East Java, especially in Batu and Bromo, strive to accelerate the completion of regulations so that they can be developed immediately.
West Java Governor Ridwan Kamil welcomed the acceleration of the implementation of Presidential Regulation Number 87 of 2021, which is expected to boost economic growth in West Java by 2% - 4%. To support this, the Coordinating Minister for the Economy as Chair of KPPIP conveyed directions for several priority projects that are expected to have a significant impact on the Indonesian economy, including:
Construction of the Cipali-Patimban Toll Road Access to facilitate access to the logistics of Patimban Port as one of the economic levers for the people of North West Java. The Coordinating Minister for Economic Affairs directs Ministries/Agencies to accelerate the Financial Closing process in Q1 2023;
The construction of the Gedebage – Tasikmalaya – Cilacap Toll Road as one of the longest toll roads in Indonesia, which is expected to improve accessibility and relieve congestion on the South Java route. The Coordinating Minister for the Economy directs to accelerate the completion of construction, especially on the Gedebage-Tasikmalaya Toll Road section;
Development of Waste Processing into Electrical Energy (PSEL) Legok Nangka as one of the efforts to accelerate achieving Net Zero Emission. The Coordinating Minister for Economic Affairs directs to accelerate the determination of the tender winner so that the Project can be completed in 2024;
Construction of the Cibitung-Cilincing Toll Road to facilitate logistics access to and from Tanjung Priok Port, and is expected to reduce national logistics costs. The Coordinating Minister for Economic Affairs directs Ministries/Agencies and Local Governments to immediately complete Project readiness and land acquisition.
Coordinating Minister Airlangga also emphasized the strategic value of non-physical support such as People's Business Credit assistance that can be given directly to Farmer Business Groups in the Agribusiness Area Development Project based on farmer corporations in Sumedang Regency and Kuningan Regency. The Governor of West Java also hopes that disaster mitigation projects, especially in tourism locations such as the Pangandaran Breakwater Development, will be one of the efforts to increase the resilience of tourism areas in South Java.
In order to support the improvement of the quality of human resources through PSN, the Coordinating Minister for the Economy encouraged the development of the Bandung Institute of Technology, Cirebon Campus and the Construction of the Majalengka Campus II Manufacturing Polytechnic. It is hoped that the existence of the campus can support the provision of quality human resources for Industrial Estates around the Tambourine Area.
The Governor of Central Java, Ganjar Pranowo welcomed the acceleration of the implementation of Presidential Regulation Number 79 of 2019, which is expected to be able to boost economic growth in Central Java. The Coordinating Minister for the Economy conveyed several projects that were highlighted, including:
The construction of the Cirebon – Semarang Gas Transmission Pipeline has been allocated funding until 2023 by the Ministry of Energy and Mineral Resources in the amount of Rp 1.2 Trillion;
The construction of the Bawen-Yogya Toll Road and the Solo-Yogya Toll Road have been allocated land acquisition funding through LMAN in 2022 and 2023 and construction will soon be completed;
The funding for the development of the Keburejo SPAM has been allocated in 2023 through the APBD scheme;
The construction of the Karangnongko Mobile Dam (Central Java Region) needs to be accelerated for land acquisition by the Regional Government and the allocation for construction development has been prepared by the Ministry of PUPR, and;
Development of KI Brebes, Kab. Brebes is currently being encouraged to accelerate development through the Business to Business (private funding) scheme.
In this meeting, the Coordinating Minister for the Economy also conveyed directions related to efforts to accelerate the construction of the Semarang-Demak Toll Road, which is currently still constrained by the issue of Destroyed Land in the toll road alignment. The Central Java Provincial Government and the Ministry of ATR/BPN together with the Coordinating Ministry for the Economy will soon complete efforts to accelerate the completion of the Destroyed Land, both in terms of regulation and technical implementation.
At the end of the Coordination Meeting, the Coordinating Minister for the Economy as the Chair of KPPIP reminded the importance of the commitment of the Governors in meeting the Readiness Criteria and the readiness of the project to be supported by the relevant Ministries/Institutions. In accordance with the direction of the Coordinating Minister for the Economy and the expectations of the Governors, the leaders of the Ministries/Institutions have committed to accelerate the projects/programs that have been mandated in the Presidential Regulation regarding the Acceleration of Regional Economic Development in the three Provinces.
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