Minister: Two transportation PSNs unlikely to complete in current administration

Published on 16/05/2024 at 07:28 GMT+7 Reading time

Minister of Transportation, Budi Karya Sumadi, has disclosed that two National Strategic Projects (PSN) in the transportation sector are unlikely to be completed during the current government's tenure.

Out of a total of 35 transportation sector PSNs under President Joko Widodo's administration, these two projects were initiated with creative funding or under the Government and Business Entity Cooperation scheme, with the government's role limited to land acquisition.

"All construction activities are carried out by the private sector. We see many potentials that can be collaborated in the transportation sector,” Budi said.

The two transportation PSNs are the Pelambang Baru Port and the Muaro Jambi Container Terminal. Initially targeted for completion this year along with seven other PSNs, these projects face delays.

Budi revealed that out of the 35 transportation PSNs during President Jokowi's administration, 15 are related to maritime transportation, 13 to railways, and seven to aviation.

He noted that 25 transportation PSNs have been completed, with the average development progress of the remaining PSNs reaching 82 percent.

The Coordinating Ministry for the Economy plans to complete 41 PSNs this year. Out of this number, 10 projects are scheduled to be finished in the next administration.

"This is our optimistic estimate because we aim to accelerate and increase the completion of PSN projects," Deputy for Regional Development and Spatial Planning at the Coordinating Ministry for the Economy, Wahyu Utomo, said on February 7, 2024.

The value of these 41 projects amounts to Rp500.07 trillion (US$31.4 billion). It is estimated that 32 PSNs completed before October 20, 2024, will reach Rp489.49 trillion, while projects completed in the next administration are valued at Rp10.58 trillion.

The largest-budgeted national strategic project is for the construction of the Bantaeng Industrial Area in South Sulawesi, with a value of Rp155 trillion. Meanwhile, the cheapest project is the development of Sorong Port, valued at Rp121.9 billion and scheduled for completion in November 2024.

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