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Inclusion of BSD, PIK in national strategic projects draws suspicion
Critics point to a potential conflict of interest, given the benefiting companies’ support for the development of the future capital city.
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Workers engage in the construction of the Central Government Area of the future capital city, Nusantara, in East Kalimantan in August 2023. (Antara/M Risyal Hidayat)
T
he government’s decision to include two projects of publicly listed property companies in its updated list of national strategic projects (PSN) has raised public suspicion, with critics pointing to a potential conflict of interest given the companies’ role in the development of the future capital city.
Both located within the Greater Jakarta area, the first project is part of the development of Pantai Indah Kapuk (PIK) 2 by property conglomerates Agung Sedayu Group and Salim Group, while the second one is part of Bumi Serpong Damai (BSD) under a subsidiary of Sinar Mas Group.
“The justification for putting [those projects] on the PSN list seems somewhat forced,” Indonesia Property Watch (IPW) executive director Ali Tranghanda told The Jakarta Post on Monday.
He said the inclusion was more “indicative of a political move”, given the parent companies’ involvement in the Nusantara Capital City (IKN) project.
“The vision [for the national strategic projects] was essentially to move the economy quickly [through projects] such as toll roads and dams, but these two [new projects] highlight that the vision has shifted.”
He acknowledged that BSD and PIK 2 had been growing rapidly.
Agung Sedayu, Salim Group and Sinar Mas Group are part of a local consortium planning to invest about Rp 20 trillion (US$1.27 billion) in Nusantara.
