Infrastructure for Inclusive Economic Development Vol.2: Case Studies of Accelerated Projects

InfrastructureforInclusiveEconomicDevelopmentVolume2:CaseStudiesofAcceleratedProjects Editedby KikiVericoHeruWibowo M.HalleyYudhistira InfrastructureforInclusiveEconomicDevelopmentVolume2: CaseStudiesofAcceleratedProjects EconomicResearchInstituteforASEANandEastAsia(ERIA)SentralSenayanII6thFloor JalanAsiaAfrikaNo.8,GeloraBungKarnoSenayan,JakartaPusat10270 Indonesia MinistryofFinance,Indonesia GedungDjuandaI,Jl.Dr.WahidinRayaNo.1,JakartaPusat,DKIJakarta10710 ©EconomicResearchInstituteforASEANandEastAsiaandMinistryofFinance,Indonesia,2023PublishedinNovember2023 Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformbyanymeanselectronicormechanicalwithoutpriorwrittennoticetoandpermissionfromERIA. Thefindings,interpretations,conclusions,andviewsexpressedintheirrespectivechaptersareentirelythoseoftheauthor/sanddonotreflecttheviewsandpoliciesoftheEconomicResearchInstituteforASEANandEastAsia,itsGoverningBoard,AcademicAdvisoryCouncil,ortheinstitutionsandgovernmentstheyrepresent.Anyerrorincontentorcitationintherespectivechaptersisthesoleresponsibilityoftheauthor/s.Materialinthispublicationmaybefreelyquotedorreprintedwithproperacknowledgement. CoverbyAntasenaAdiPerdanaLayoutbyArtmosphere NationalLibraryofIndonesiaCataloguinginPublicationDataFullseriesISBNno.978-602-5460-50-0 Volume2ISBNno.978-602-5460-52-4 Photocovernote,toptobottom: MassRapidTransport(MRT)inDKIJakarta MinistryofTransportation KayuagungInterchange,Bakaheuni-TerbangiBesarTollRoadatOganIlir,SouthSumatra GovernmentPropertyAgency(LMAN),MinistryofFinance BorderPostSkouw,Jayapura,Papua FinancialEducationandTrainingAgency(FETA),MinistryofFinance Foreword ChairmanofFinancialEducationandTrainingAgencyandActingPresidentDirectoroftheEducationalFundManagementInstitution,theMinistryofFinance Infrastructuredevelopmentplaysavitalroleinsocialandeconomicgrowthinanyemergingnation.Itencompassestheimprovementofessentialphysicalstructures,systems,andfacilitiesthatsupportthefunctioningofsocietyandtheeconomy.Byinvestingandmaintainingarobustinfrastructuresystem,countriescancreateenablingenvironmentsthatattractinvestments,fostersinnovation,andpromotessustainableeconomicgrowth. Acknowledgingthecrucialroleofinfrastructureinfosteringcompetitivenessandfacilitatingdevelopmentacrossthenation,Indonesia’sPresidentJokoWidodohasmadeinfrastructuredevelopmenthistoppriorityagenda.OneofhisnotablepoliciesisissuingtheNationalStrategicProjects(ProyekStrategisNasional,PSN)scheme.ThegovernmentinitiatedthePSNschemeasoneofthestrategicstepstoacceleratethefulfilmentofessentialinfrastructurerequirementstosupporteconomicgrowthandimprovepeople’swell-being. IntroductiontotheNationalStrategicProjectsScheme ThePSNscheme,firstsignedon8January2016,throughPresidentialRegulationNumber3of2016,isaprojectorprogrammeimplementedbythegovernment,regionalgovernments,and/orbusinessentitiesthathavestrategicsignificanceforpromotinggrowthandequitabledevelopment,withtheaimofimprovingthewelfareofsocietyandregionaldevelopment.TheinclusionofaprojectinthePSNlistrequiresathoroughevaluationofproposalsbytheCommitteefortheAccelerationofPriorityInfrastructureProvision(KPPIP)basedonthreecriteria:basic,strategic,andoperational.BybeingselectedasaNationalStrategicProject,aninfrastructureprojectwillgainnumerousadvantages.However,theimplementationofthePSNschemeisnotwithoutitschallenges. GEDUNGB(SOEGITOSASTROMIDJOJO)LANTAI3,JALANPURNAWARMANNOMOR99,KEBAYORANBARU, JAKARTA12110;TELEPON(021)7394666EXT8203,SITUShttp://www.bppk.kemenkeu.go.id ToprovideacomprehensiveintroductiontothePSNscheme,Chapter1hasbeendedicatedtoexploringthebackgroundofthePSNscheme,thecriteriafornationalstrategicprojects, advantagesofbeinglistedasanationalstrategicproject,thecumulativeprogressachievedfrom2016to2022,followedupwithpertinentissuesthatneedattentionforthecontinuedsuccessofthePSNscheme. PSNDevelopmentinIndonesiaandCaseStudiesof20CompletedPSNs Sinceitsestablishmentfrom2016toDecember2022,atotalof153PSNshavebeensuccessfullycompletedwithaninvestmentvaluesurpassingRp1,040trillion.Theconstructionprogressof thePSNschemeacrossdifferentsectorshasmadeasubstantialcontributiontoinfrastructuredevelopmentinIndonesia.Ithasgeneratedawide-rangingmultipliereffectwithsocialandeconomicimplications.Theseprojectshavecontributedtoimprovingregionalconnectivityandeconomy.Notableachievementsincludetheoperationofthefirstmassrapidtransit(MRT)inIndonesia,theexpansionoftherailnetwork,theconstructionofdams,theexpansionoftollroads,andtheimplementationofdrinkingwatersupply. AswedigintothedevelopmentofPSNsinIndonesia,thechapterswillfirstexplaintheneedsofinfrastructuredevelopment,highlighttheimportanceofeconomicandsocialinfrastructuredevelopment,presentaliteraturereviewonnationalstrategicprojects,andprovideanin-depthoverviewofthebenefitandimpactofPSNs. Chapter3willprovideinmuchgreaterdetail,accompaniedwithphotoillustrations,20selectedPSNs.ThesePSNshavebeenclusteredintothreedistinctgroups:connectivityeconomicinfrastructure,non-connectivity