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'Nothing political' about naming BSD, PIK 2 as strategic projects, govt says

The government also claimed the selection of PSN projects was free of conflict of interest and was carried out accountably.

News Desk (The Jakarta Post)
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Jakarta
Wed, March 27, 2024

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'Nothing political' about naming BSD, PIK 2 as strategic projects, govt says Motorists drive on May 4, 2016 along the Jakarta Pantai Indah Kapuk (PIK) International Bridge connecting PIK 2 Sedayu Indo City and Golf Island in North Jakarta. (JP/Dhoni Setiawan)

T

he government has explained its rationale for updating its national strategic projects (PSN) list to include the private-sector developments Bumi Serpong Damai (BSD) City and Pantai Indah Kapuk (PIK) 2 on the national strategic projects (PSN) list in response to critics questioning the decision.

A subsidiary of privately owned Sinar Mas Group is the developer behind BSD City in Serpong, while private property conglomerates Agung Sedayu Group and Salim Group are the developers of PIK 2 in Kosambi. Both developments are located in Tangerang, Banten.

The Office of the Coordinating Economic Minister said the two projects’ inclusion on the PSN list followed the norms and rules stipulated in Presidential Regulation (Perpres) No. 3/2016 and Perpres No. 109/2020.

“There is nothing political in making this decision about the PSN projects. All decisions have undergone thorough studies and clear parameters,” the office’s spokesperson Haryo Limanseto said in a statement on Tuesday, insisting that the selection of PSN listings was free of conflicts of interest and carried out accountably.

Haryo said the inclusion of BSD City aimed to develop the country’s education, biomedical and digital sectors, while PIK 2 was chosen for developing ecotourism, including mangrove tourism.

According to him, the government estimated that the two projects would employ more than 16,000 people combined.

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He added that the PSN projects were supported by letters of commitment from relevant ministries and agencies. For example, the selection of BSD City was supported by the Health Ministry, while the PIK 2 project was backed by the Tourism and Creative Economy Ministry.

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