Bakauheni-Terbanggi Besar Toll Road in Lampung province, one of the toll roads that began operating in 2019.

JAKARTA (TheInsiderStories) – The realization of the National Strategic Project (NSP) experiencing significant obstacles, starting from the stage of preparation, transaction or auction to construction or implementation, said the official government yesterday.

Until the end of the Joko Widodo’ first term, there were at least 115 projects and one program out of 223 NSP’ projects and three programs that was still pending.

According to Managing Director of the Acceleration of Priority Infrastructure Provision Committee  Wahyu Utomo, since it was announced in 2016 through Presidential Regulation Number 3 Year 2016, around 65 PSN are still under construction and and are estimated to be operational after 2019.

In addition, there are eight projects that are still in the process of transactions or auctions and 42 projects are still under preparation. The 1 aircraft industry program is still in the preparation stage. Everything can only be done or operate next year.

“The projects mentioned will operate after the end of 2019, but even then it will depend on the politics of the new government policy, especially now that we don’t know surely who won in this year’s presidential election,” he said at Borobudur Hotel, Jakarta, on Monday (05/27).

However, the Committee estimates that before Widodo ended his first-term, precisely in the third quarter of 2019, there were a total of 89 NSP to be completed, and 33 projects plus 2 programs to start operations, as well as 106 projects and 1 aircraft industry program which were under construction.

“Until the end of this year, it is estimated that there will be seven additional projects that will be completed in their entirety, including financial close. Thus, at the end of the year accumulatively there will be 95 projects operating in their entirety,” Utomo said.

In addition, he stressed that the Committee intends to catch up with the realization of the NSP by targeting the operation of 12 projects in 3Q 2019.

He explained, after being set in 2016, the number of PSN was 225 projects and one program. But a year later the regulation was revised through Presidential Regulation Number 58 Year 2017, so that the total project included 245 projects and 2 programs.

Finally, the number of NSP was again reduced in 2018 when the government established a regulation through Presidential Regulation Number 56 Year 2018, so in total there is 223 projects and three programs.

From 2016 to May 2019, Utomo added, there were 77 NSP that had been completed as a whole, including financial close. In addition, there are 26 projects, one electricity program, and one economic equalization program in the construction phase and start operating.

Meanwhile, during the period January-May 2019, there were 15 projects that had been completed, including: Bakauheni-Terbanggi Besar Toll Road (140.9 km), part of the 8 Trans Sumatra toll roads; Palu-Parigi Road (83.6 km); Trans Maluku Road (7 segments); Gorontalo-Manado Connecting Road (301.7 km); and Trans Morotai Ring Road (231.84 km).

In addition, there are 4 Special Economic Zones (SEZ), namely Maloy Batuta Trans Kalimantan Province SEZ, Bitung SEZ, Morotai SEZ, and the Belitung SEZ (Tanjung Kelayang). There are the construction of two dams, namely Mila Dam and Gondang Dam.

In the transportation and telecommunications sector, the Committee has built an airport, namely Tjilik Riwut Airport, in Palangkaraya, and the Palapa Ring Broadband project in 457 districts/cities through a non-Public-Privat Partnership pattern. There is also Kuala Tanjung Bulli and Smelter Construction project that has been completed and is ready to operate.

Overall, there are 62 projects that have been completed since 2016-2018. Meanwhile, in 2019, there are 5 toll roads that have been operating but have not been completed with an investment of Rp128 billion.

In the electricity sector, as of January 2019, there were 3,009 MW already in operation, 20,416 in the construction phase, and 9,507 MW had already been completed with PPAs but were not financial close.

This year, said Utomo, the government plans to no longer add new projects until the pending projects are completed.

“Mr. Darmin Nasution (Coordinating Minister for Economic Affairs) wants the projects that have been determined to be maximized and continued and no new projects are added,” he explained.

Written by Daniel Deha, Email: daniel@theinsiderstories.com

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