JAKARTA (TheInsiderStories) - The Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) and related government ministries that will carry out the National Strategic Projects (PSN) are currently evaluating the criteria and documents of new projects to be included in the national Strategic Projects.
At a meeting last Friday, the Head of Implementation Team of KPPI Wahyu Utomo unveiled changes of criteria for national strategic projects in line with Presidential Decree (Perpres) No. 3/2016 and Perpres 75/2014, which was amended by Perpress 122/2016.
The meeting was attended by Coordinating Minister for the Economy Darmin Nasution, Agrarian and Spatial Planning Minister/Head of National Land Registration Agency (BPN) Sofyan Djalil, Industry Minister Airlangga Hartarto, Communication and Information Minister Rudiantara, Transportation Minister Budi Karya Sumadi, Public Works and Public Housing Minister Basuki Hadimuljono and other related ministers and agencies.
The meeting agreed to add two new criteria, namely ‘champion’ and EIRR. Champion is related with responsibility and commitment to complete the project by responsible agencies, ministries and project coordinators. The parameters are systematic, clarity, logic framework of the plan to implement the national strategic project.
As for EIRR or Internal Rate of Return, KPPIP stated that the national strategic project is not only about large value projects, but it must also be visible and the IRR must be clear. A large value project with low EIRR would not be a strategic project.
The national projects should be completed by 2018, said Sofyan Djalil.
Minister Basuki Hadimulyana said that out of 117 new projects, 77 projects have been approved to be included in the new National Strategic Projects. of these, 24 projects are under the auspices of the Public Works and Public Housing Ministry — 4 fresh water projects, 9 dam and 20 irrigation projects, with total value of Rp300 trillion.
The President will issue new Presidential Decree to amend the previous Perpress on National Strategic Projects.
Transportation Minister Budi Karya Sumadi said among strategic projects under the ministry are Inland Water Way, MRT East West. Jogja - Kulon Progo railway, Jakarta - Surabaya high speed train project and Patimban port as well as a railway project in Medan. He said some of these projects will be partly by loans from international agencies. (*)