Jakarta, CNBC Indonesia – The Indonesian government has prepared the National Long Term Development Plan (RPJPN) 2025-2045 to transform towards a Golden Indonesia 2045 with the vision of ‘Sovereign, Advanced and Sustainable Archipelago Nation’.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the 2025-2045 RPJPN will still focus on infrastructure development by optimizing built infrastructure through the construction of downstream industrial areas that are connected to several things.
For example, such as connectivity infrastructure, maintaining the continuity of IKN as a national economic superhub, energy transition towards a Net Zero Emission commitment, maintaining consistency in central and regional development, and orchestrating all development actors who focus not only on the Government, but also on the private sector and the general public.
Meanwhile, Indonesia’s investment indicators are currently showing positive results with the Manufacturing PMI index recording consistent growth for 25 consecutive months and is currently at 52.3.
Investment realization in the third quarter also reached IDR 374 trillion, and from the banking side, working capital credit also grew positively. With this positive achievement, in the long term the Government is targeting achieving per capita income equivalent to developed countries of around US$23,000 to US$30,000 by 2045.
“Several of these indicators are of course greatly influenced by Government policy, including the PSN Infrastructure program and Special Economic Zones (KEK),” said Airlangga in a written statement, Friday (27/10/2023).
Furthermore, Airlangga also emphasized that according to President Joko Widodo’s direction since 2021, the direction of infrastructure development, especially National Strategic Projects (PSN), must prioritize non-APBN projects that are supported by Ministries/technical Institutions and support economic strengthening policies.
This is in line with the mandate of the 2020-2024 National Medium Term Development Plan (RPJMN) which identifies infrastructure investment needs worth IDR 6,445 trillion, where the APBN is only able to provide IDR 2,385 trillion or 37% of the total budget requirements.
This means that infrastructure financing still requires other sources, for example the Cooperation Scheme between the Government and Business Entities (KPBU). Examples include the development of Industrial Areas (KI), acceleration of the Smelter Program, and construction of KEK.
Apart from that, the Government has also prepared draft regulations for non-APBN financing schemes such as Limited Concession Scheme and Land Value Capture.
Based on Coordinating Minister for the Economy Regulation Number 7 of 2023, there are 211 projects and 13 programs on the PSN list with an estimated total investment value of IDR 5,746.9 trillion. These projects are spread across several sectors, including development of connectivity infrastructure such as ports, toll roads, trains and airports, increasing energy security, regional development and industrial downstreaming, as well as providing basic infrastructure.
“I hope that PSN can be continued. Our homework in the future is how to socialize all these achievements to the public, in order to get their support, so that the program can be continued. We can convey more simply to the public about PSN’s achievements,” concluded Airlangga.
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Originally posted 2023-10-27 10:45:17.