The Indonesian government has decided to exclude 10 infrastructure projects from the National Strategic Project list, said senior ministers today (04/16) - Photo by CMMA Office

JAKARTA (TheInsiderStories) – The Indonesian government has decided to exclude 10 infrastructure projects from the National Strategic Project (NSP) list, said senior ministers today (04/16). As a replacement there are hundreds of new projects proposed by the ministries, regional governments, state and regional-owned firms and private sectors.

“There are currently 232 new project proposals. 84 project proposals come from five ministries, 123 project proposals come from 13 regional governments, 17 project proposals come from four SOEs and regional companies, also eight projectcome from the private sector,” said coordinating minister for economic affairs, Airlangga Hartarto, in a written statement today.

He explained, as of Dec. 31, 2019, as many as 88 percent of NSP had passed the preparatory stage, including 35,000 megawatts electricity program and the Economic Equity Policy Program. While, 12 percent are still in the preparation stage, including the aircraft industry program.

Coordinating minister for Maritime and investment affairs (CMMIA), Luhut Binsar Pandjaitan, hopes the Acceleration of Priority Infrastructure Development Committee (KPPIP) could accelerates the development of NSP projects even there are pressures from the pandemic. He also pushed the private investment projects that had been experiencing obstacles could resolved to absorb labor and generates foreign investment enter the country.

“We have communicated with Mr. Wahyu (Utomo) from KPPIP, regarding several project proposals that we evaluated in terms of funding, aspects of investor capability, impact on the economy, and aspects of spatial planning that have met the criteria for PSN,” said acting deputy at the CMMIA ministry, Septian Hario Seto.

The first proposal is the Obi Island Industrial Estate run by Harita Group, he adds. The smelter project is currently in phase 2 with an estimated investment of around US$800 million. The Phase 1 of the smelter project had been operating since 2016.

“A significant development is the High Pressure Acid Leaching smelter, construction is nearing completion, its estimated that the third quarter of 2020 will be operational,” said the deputy by adding the smelter products are cathode lithium battery material, nickel and cobalt sulfate. The investment value of the smelter is estimated at around $1 billion.

The second proposal is for the Weda Bay Industrial Park with total investment plan for this year is around US$5 billion. Initially, the inauguration of the commercial operation of the smelter will be carried out in April 2020 and the export share is estimated to reach $2 billion.

“These two industrial areas are already included in the category that can be considered in PSN,” he continued.

In addition, said Seto, there are nine other project proposals that have been evaluated and could be completed before 2024. The nine projects consist of six smelter projects, one coal processing project into methanol (Methanol Industrial Estate project) in East Kalimantan, and the construction of the Kediri – Tulungagung toll road in East Java.

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