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Strategic projects need political insurance

Rabu, 15 Februari 2017 / 13:03 WIB

Strategic projects need political insurance

JAKARTA. Some national strategic projects, mainly in outside Java, are facing a number of obstacles. As information, the national strategic projects are stipulated under the Presidential Regulation No 3/2016 on the Acceleration of National Strategic Projects.

Results of the government’s evaluation show that some national strategic projects in outside Java, such as in Kalimantan and Sulawesi, are interrupted by some problems, mainly related to the land utilization permit and the government’s insurance on the sustainability of the projects.

The projects include the railway project of Puruk Cahu-Batanjung in East Kalimantan province. To date, the project has not started yet, despite the bidding process in some years ago had selected China Railway Group as the tender winner.

Governor of East Kalimantan Sugianto Sabran said, the railway project in the province has been constrained by the issue related with the issuance of forest land leasehold permit. The project is also suspended due to the lack of political risk insurance from the central government. According to Sugianto, the investors need the political insurance of the sustainability of the project during the leadership succession.

Some issues related to land also become the obstacles of the development of Bitung Special Economic Zone and Bitung Port projects in North Sulawesi.

Governor of North Sulawesi Olly Dondokambey said, the project of Bitung SEZ is constrained, as the land certificate of the project has not yet been issued. Meanwhile, Bitung Port project is hampered by the unfinished environmental impact assessment.

Nonetheless, Olly said, after the evaluation meeting at Presidential Office, Tuesday (14/2), the government promised to accelerate the issuance of relevant permits for the national strategic permits.

Further evaluation

Meanwhile, Sugianto said that during the limited meeting on the evaluation of the national strategic projects in Kalimantan and Sulawesi, President Joko Widodo asked him to immediately communicate with Minister of Financial in terms of some issues related to the political insurance from government. “I have proposed to meet with China Railway in the next week,” he said.

Minister of Finance Sri Mulyani Indrawati said that the Ministry of Finance will review the request for the political insurance, on the grounds that the request was made after the tender process completed. “We will respond (to the request),” the Minister said.

As information, after evaluated the national strategic projects, the government is reviewing the list of national priority projects, which are included under the Presidential Regulation No 3/2016. Understandably, some of the projects have completed, while others even have not started yet. (Muhammad Farid/Translator)

Reporter: Agus Triyono
Editor: Barratut Taqiyyah Rafie


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