JAKARTA (TheInsiderStories) – Indonesian government prepares new 89 National Strategic Projects (NSP) worth of Rp1,422 trillion (US$94.8 billion) throughout 2020 – 2024, said the senior minister on Friday (05/29). Among them, are drone projects that would be developed by state firm PT Dirgantara Indonesia, bridges, airports, industrial zones, irrigation, dams, sea dikes, rice fields, biofuel and salt projects.
“The president also suggested to create a hub for transportation, economy and tourism in East Kalimantan, Bali or Manado,” coordinating minister for economic affairs, Airlangga Hartarto told reporters after the limited meeting led by President Joko Widodo by virtual conference.
From a total of 89 NSPs, 15 road and bridge projects, five airport projects worth of Rp5.66 trillion, five industrial estate projects totaling Rp327.2 trillion, 13 dam and irrigation projects, one sea embankment project of Rp5.68 trillion, two smelter projects, and one food estate in Central Kalimantan.
Then, five port projects, six railroad projects, 13 border area projects, 13 energy projects, soz clean water projects, one waste treatment project, and three technology development projects including drone technology worth Rp7.17 trillion.
Hartarto said that the projects were spread across several regions, including seven projects in Sumatra worth Rp117 trillion, 25 projects in Java worth Rp462 trillion, 17 projects in Kalimantan worth Rp144 trillion, eight projects in Sulawesi worth Rp208 trillion, 12 projects in Bali and Nusa Tenggara worth Rp28 trillion, and Maluku to Papua worth Rp111 trillion.
Due to COVID-19 outbreak, he said, some investments in smelter development have been delayed between four months to a year. However, for oil and gas construction is expected to start before 2024. He give an example, the development in Balongan project owned by state energy firm, PT Pertamina, will be finalized with investors from Taiwan. The projects need costs $12 billion and will savings import costs at the same amount, he adds.
Then, the development of smelters in Weda Bay, Morowali, Konawe also will continue and potential devisions around $6 billion to $10 billion and a workforce of 40,000. The country also build new industrial areas in Brebes, Central Java for relocation from Japan, South Korea and the United States to Indonesia.
In addition, the government plans to food estate in Central Kalimantan in the land areas 164,598 hectares which has been has productive land 80,856 hectares. And, Jakarta – Bandung – Surabaya fast train will continues and will be followed up by the state own ministry.
Last year, the government reported 88 percent of NSP had passed the preparatory stage, including 35,000 megawatts electricity program and the Economic Equity Policy Program. Coordinating minister for maritime and investment affairs, Luhut Binsar Pandjaitan, hopes the Acceleration of Priority Infrastructure Development Committee (KPPIP) could accelerates the development of the projects even there are pressures from the pandemic.
“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 $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.
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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