SMM4, 23 Jun: recently, Indonesian Minister of Maritime Affairs and Investment Luhut said that the government has been evaluating 11 new infrastructure projects, which will be incorporated into the national strategic project (PSN), to attract investment and create jobs. "I discussed with the Minister of Coordinating economy because we wanted to assess which of the national strategic projects could be funded by the private sector so that we would not rely solely on the national budget, given the current situation caused by the pandemic. I hope we can act quickly."
It is reported that Indonesia has been refocusing its national spending to provide funding for the fight against the pandemic. Luhut expects privately funded projects to continue to develop and absorb workers while contributing to the country's foreign exchange reserves. The projects included in the list of national strategic projects will be granted easier licensing processes and accelerated land procurement as well as government guarantees for any political risks.
According to Septian Hario Seto, Deputy head of Investment Coordination and Mining, Office for the Coordination of Maritime Affairs and Minister of Investment, two of the proposed 11 new projects are industrial areas and industrial parks. The Obi Island Industrial Zone in Hamahela Regent District, south of North Maluku, has nearly 2000 workers and already has a second stage rotary kiln-electric furnace (RKEF) smelter for the production of ferronickel, with an estimated investment of US $800m. A major development in the industrial zone will be the construction of a high-pressure acid leaching [HPAL] smelter, which will be completed in the third quarter of 2020. The HPAL smelter produces materials for lithium batteries, cobalt sulfate and nickel sulfate.
He said the second proposed project for the national strategic project was the Weda Bay industrial park project, which had suspended operations at the smelter because of the outbreak. Investment plans for 2020 are about $4 billion to $5 billion, while exports are estimated at least $2 billion by 2024. The other nine projects are six smelter projects, a coal-to-coal processing area in East Kalimantan Province, a Kawan industrial area and the construction of the Kediri-Tulungagung Turnpike in East Java. "investors in the project are being financially evaluated to ensure that they are able to complete the project by 2024 and be included in the national strategic project."
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