National Strategic Project

National Strategic Projects (Indonesian: Proyek Strategis Nasional, abbreviated PSN) are Indonesian infrastructure projects which are designated as strategic in increasing economic growth, equitable development, community welfare and regional development. It was established during the administration of President Joko Widodo. PSN is regulated through a presidential regulation, while project implementation is carried out directly by the central government, regional government, and/or business entities as well as Government-Enterprise Cooperation (KPBU), prioritizing the use of domestic components.

PSNs are required to fulfill elements of basic, strategic, and operational criteria. The basic criteria is such that the project conforms with the National/Regional Medium Term Development Plan along with the strategic plan for the infrastructure sector, as well as conforming with the Spatial and Regional Plan as long as it does not disrupt green open spaces. Strategic criteria refers to the benefits of the project for the economy, social welfare, defense, national security, as well as connectivity and distribution diversity between islands.

Since its launch in 2016, 92 National Strategic Projects have been completed with an investment value of Rp 467.4 trillion. The number of completed projects is equivalent to 41% of the total 223 projects contained in Presidential Regulation No. 56 of 2018. In terms of investment value, the contribution reached 11.4% of the total project investment of Rp 4,092 trillion. On the other hand, the National Strategic Project has also received various criticisms, such as negative cash flows experienced by state-owned enterprises (BUMN) due to assignments by the government and environmental issues. Apart from that, PSN also faces obstacles in terms of land acquisition, planning and preparation, funding, licensing and construction implementation.