What National Strategic Projects Are Governed Under PERPRES 3/2016?
Introduction: Indonesia's National Strategic Projects Acceleration Framework
On January 8, 2016, Indonesia established a transformative regulatory framework to accelerate infrastructure development and economic growth through prioritized national projects. Peraturan Presiden Nomor 3 Tahun 2016 tentang Percepatan Pelaksanaan Proyek Strategis Nasional (Presidential Regulation No. 3 of 2016 on Acceleration of National Strategic Projects Implementation) creates a special regulatory regime for projects deemed strategically important for national development. This regulation establishes streamlined permitting procedures, shortened approval timelines, and coordinated government support for infrastructure projects critical to Indonesia's economic transformation.
The regulation's most significant innovation is the creation of a distinct legal category—Proyek Strategis Nasional (National Strategic Projects, or PSN)—that receives preferential regulatory treatment compared to ordinary infrastructure projects. PSN projects benefit from accelerated environmental permits (60-day maximum), expedited forest use permits (30-day maximum), fast-tracked tax facilitation (28-day maximum), and coordinated government support through the Committee for the Acceleration of Priority Infrastructure Provision (Komite Percepatan Penyediaan Infrastruktur Prioritas, or KPPIP). This preferential framework addresses Indonesia's chronic infrastructure deficit and enables rapid deployment of projects essential for economic competitiveness, regional connectivity, and public welfare.
PERPRES 3/2016 implements Presidential Regulation No. 75 of 2014 on Acceleration of Priority Infrastructure Provision, which originally established KPPIP as the central coordination body for infrastructure acceleration. When President Joko Widodo took office in 2014, Indonesia faced significant infrastructure gaps—inadequate transportation networks, insufficient energy capacity, limited water and sanitation infrastructure, and underdeveloped telecommunications systems. These infrastructure deficits constrained economic growth, increased logistics costs, limited regional development opportunities, and reduced Indonesia's competitiveness in global markets. PERPRES 3/2016 was designed to overcome bureaucratic obstacles, regulatory delays, and coordination failures that previously slowed infrastructure project implementation.
The regulation initially designated 225 infrastructure projects and one electricity program as National Strategic Projects, representing approximately 4,197 trillion Rupiah in total investment across 15 economic sectors. These projects span diverse infrastructure categories: toll roads and highways, railways and mass rapid transit systems, ports and airports, power plants and electricity transmission, oil and gas facilities, water supply and sanitation systems, irrigation and dams, industrial estates, special economic zones, and telecommunications infrastructure. Projects are selected based on their strategic importance for economic growth, employment generation, regional development, and public welfare improvement.
The regulation defines "Proyek Strategis Nasional" as projects implemented by the Government, Regional Governments, and/or business entities that have strategic characteristics for increasing growth and development equity in order to improve public welfare and regional development. This definition establishes three key PSN characteristics: implementation by government and/or private sector, strategic importance for economic growth and equity, and contribution to public welfare and regional development. Projects meeting these criteria and formally designated through presidential decision receive PSN status and associated regulatory facilitation.
PERPRES 3/2016 establishes a comprehensive acceleration framework encompassing five core mechanisms: designation procedures for PSN status, streamlined permitting requirements, shortened regulatory timelines, centralized coordination through KPPIP, and facilitation for land acquisition and environmental permits. These mechanisms work together to reduce project implementation timelines from initial planning through construction completion. The regulation mandates that ministers, heads of government agencies, governors, and mayors/regents must prioritize PSN projects, provide necessary permits according to their authority, and resolve obstacles hindering project implementation.
This comprehensive analysis examines PERPRES 3/2016's National Strategic Projects framework, focusing on PSN definitions and criteria, accelerated permitting procedures, shortened regulatory timelines, KPPIP coordination mechanisms, and implementation requirements for government agencies. Understanding this framework is essential for project developers seeking PSN designation, government officials implementing acceleration procedures, and stakeholders monitoring Indonesia's infrastructure development progress.
1.0 National Strategic Projects: Definition, Criteria, and Scope
The regulation establishes "Proyek Strategis Nasional" (National Strategic Projects) as a distinct legal category of infrastructure projects receiving preferential regulatory treatment. According to government sources, Proyek Strategis Nasional adalah proyek yang dilaksanakan oleh Pemerintah, Pemerintah Daerah, dan/atau badan usaha yang memiliki sifat strategis untuk peningkatan pertumbuhan dan pemerataan pembangunan dalam rangka meningkatkan kesejahteraan masyarakat dan pembangunan daerah (National Strategic Projects are projects implemented by the Government, Regional Governments, and/or business entities that have strategic characteristics for increasing growth and development equity in order to improve public welfare and regional development).
This definition establishes three essential PSN elements. First, implementation flexibility—PSN projects may be implemented by central government, regional governments (provinces, districts, cities), or business entities (state-owned enterprises, private companies, public-private partnerships). This implementation flexibility enables PSN designation regardless of project financing source, ownership structure, or implementing agency. Second, strategic importance—PSN projects must demonstrate strategic characteristics for economic growth and development equity. Projects must contribute to national or regional economic expansion, reduce development disparities between regions, or address critical infrastructure gaps constraining growth. Third, welfare and development objectives—PSN projects must serve public welfare improvement and regional development advancement, not merely commercial profit generation.
When first implemented in 2016, PERPRES 3/2016 designated 225 infrastructure projects and one electricity program as National Strategic Projects, representing approximately 4,197 trillion Rupiah in total investment value. These initial PSN designations covered 15 distinct economic sectors, demonstrating the breadth of infrastructure categories eligible for PSN status. The regulation has been amended three times to expand PSN coverage and adjust selection criteria: PERPRES 58/2017 (First Amendment) added 56 new projects including 55 infrastructure projects and one aircraft industry program, bringing total PSN count to 245 projects plus two programs; PERPRES 56/2018 (Second Amendment) further expanded PSN lists and adjusted implementation procedures; PERPRES 109/2020 (Third Amendment) updated PSN lists and strengthened KPPIP authority.
KPPIP, chaired by the Coordinating Minister for Economic Affairs with members including the Minister of Finance, Minister of National Development Planning/Head of Bappenas, and Head of National Land Agency, conducts PSN selection and designation. The 2017 amendments established eight priority criteria for PSN selection, enabling systematic evaluation of candidate projects against standardized metrics. These criteria ensure PSN designation goes to projects with genuine strategic importance rather than politically motivated selections. KPPIP can modify the PSN list based on evaluation results, subject to presidential approval, allowing dynamic adjustment as projects are completed or new strategic priorities emerge.
Matrix 1.1 below details the PSN definition elements, implementation authorities, and strategic characteristics that qualify projects for National Strategic Project designation.
Matrix 1.1: National Strategic Projects Definition and Essential Elements
| No. | PSN Element | Indonesian Legal Term | Description | Implementation Authority | Strategic Characteristics | Legal Basis |
|---|---|---|---|---|---|---|
| 1.1 | Implementing Entities | Pemerintah, Pemerintah Daerah, dan/atau badan usaha | PSN projects may be implemented by central government, regional governments, or business entities | Central government ministries/agencies; Provincial governments; District/city governments; State-owned enterprises; Private companies; PPP arrangements | Flexible implementation structure enabling public, private, or mixed financing | Government definition sources |
| 1.2 | Strategic Nature | memiliki sifat strategis untuk peningkatan pertumbuhan dan pemerataan pembangunan | Projects must demonstrate strategic importance for economic growth and development equity | Project sponsors must demonstrate growth contribution and equity improvement | Contributes to GDP growth; Reduces regional disparities; Addresses critical infrastructure gaps | Government definition sources |
| 1.3 | Welfare and Development Objectives | meningkatkan kesejahteraan masyarakat dan pembangunan daerah | Projects must serve public welfare improvement and regional development | Projects must demonstrate public benefit beyond commercial profit | Improves public services; Enhances regional development; Generates broad economic benefits | Government definition sources |
Matrix 1.2: Initial PSN Designation Scope and Subsequent Amendments
| No. | Regulation Version | Amendment Type | Number of Projects | Total Investment Value | Key Changes | Legal Citation |
|---|---|---|---|---|---|---|
| 1.4 | PERPRES 3/2016 (Original) | Initial regulation | 225 projects + 1 electricity program | Approx. 4,197 trillion Rupiah | Established PSN framework; Designated initial 225 infrastructure projects across 15 sectors | PERPRES 3/2016 |
| 1.5 | PERPRES 58/2017 | First Amendment | Added 56 projects (55 infrastructure + 1 aircraft industry program) | Added approx. 1,206 trillion Rupiah | Expanded PSN to 245 projects + 2 programs; Strengthened KPPIP authority to modify PSN list | PERPRES 58/2017 |
| 1.6 | PERPRES 56/2018 | Second Amendment | Updates to existing PSN list | (Not specified in sources) | Adjusted implementation procedures; Updated PSN designations | PERPRES 56/2018 |
| 1.7 | PERPRES 109/2020 | Third Amendment | Updates to existing PSN list | (Not specified in sources) | Further adjusted PSN lists and KPPIP authority | PERPRES 109/2020 |
2.0 Accelerated Permitting Framework and Shortened Timelines
PERPRES 3/2016 establishes a comprehensive accelerated permitting framework that streamlines regulatory approval processes and imposes mandatory timelines on government agencies processing PSN permits. According to Pasal 3, "Menteri/kepala lembaga, gubernor, dan bupati/walikota memberikan perizinan dan non-perizinan yang diperlukan dalam rangka pelaksanaan Proyek Strategis Nasional sesuai dengan kewenangannya" (Ministers/heads of agencies, governors, and mayors/regents provide permits and non-permits required for National Strategic Projects implementation according to their authority). This provision establishes mandatory obligation for government officials to issue necessary permits for PSN projects, subject to compliance with applicable legal requirements.
The regulation identifies minimum permits required before PSN construction can commence. According to sources, pembangunan/konstruksi Proyek Strategis Nasional dapat dimulai setelah memperoleh perizinan paling kurang: a. Penetapan Lokasi atau Izin Lokasi; b. Izin Lingkungan; dan c. Izin Mendirikan Bangunan (PSN construction can begin after obtaining permits at minimum: a. Location Designation or Location Permit; b. Environmental Permit; and c. Building Permit). This provision establishes a reduced permit set compared to ordinary projects, which often require dozens of separate permits before construction authorization. By limiting minimum permits to location, environment, and building authorization, the regulation reduces pre-construction approval burden significantly.
For selected permit categories, the regulation establishes maximum processing timelines that dramatically shorten government approval periods. According to government sources, waktu penyelesaian perizinan dan nonperizinan dikecualikan untuk: Izin Lingkungan yang diselesaikan paling lama 60 (enam puluh) hari kerja; Izin Pinjam Pakai Kawasan Hutan paling lama 30 (tiga puluh) hari kerja; Nonperizinan untuk fasilitas perpajakan (Pajak Penghasilan dan/atau Pajak Pertambahan Nilai) paling lama 28 (dua puluh delapan) hari kerja (permit and non-permit completion time is excepted for: Environmental Permits completed at maximum 60 working days; Forest Area Use Permits at maximum 30 working days; Non-permits for tax facilities (Income Tax and/or Value Added Tax) at maximum 28 working days). These maximum timelines represent significant reductions—environmental permits for ordinary projects often require 6-12 months or longer for complex assessments.
The regulation mandates delegation of permitting authority to the One-Stop Integrated Service Center (Pelayanan Terpadu Satu Pintu, or PTSP) at the central level, coordinated through the Investment Coordinating Board (Badan Koordinasi Penanaman Modal, or BKPM). According to Pasal 16 ayat (9), "Jangka waktu penyelesaian perizinan dan nonperizinan yang dilimpahkan atau didelegasikan ditetapkan paling lama 3 (tiga) hari kerja sejak diterimanya dokumen perizinan secara lengkap dan benar" (The completion period for permits and non-permits delegated or transferred is set at maximum 3 working days from receipt of complete and correct permit documents). This three-day maximum for delegated permits creates extremely rapid approval timelines when permit applications are properly prepared with complete documentation.
For permits that cannot be delegated or transferred to PTSP, the regulation establishes a 30-working-day maximum completion period. This provision ensures that even complex permits requiring specialized agency expertise receive expedited processing compared to ordinary projects. The regulation states that ministers and agency heads must delegate or transfer PSN permitting authority to Central PTSP through BKPM, centralizing permit processing and enabling coordinated review rather than sequential approvals across multiple agencies.
Matrix 2.1 below details the minimum permits required for PSN construction commencement, the accelerated permitting timelines for key permit categories, and delegation requirements for streamlined processing.
Matrix 2.1: Minimum Permits Required for PSN Construction Commencement
| No. | Permit Category | Indonesian Term | Purpose | Issuing Authority | Required Before Construction | Legal Basis |
|---|---|---|---|---|---|---|
| 2.1 | Location Designation/Permit | Penetapan Lokasi atau Izin Lokasi | Establishes legal right to use land area for project implementation | Provincial/district/city government according to spatial planning authority | Yes - Required before construction | Government sources |
| 2.2 | Environmental Permit | Izin Lingkungan | Authorizes project implementation after environmental impact assessment | Ministry of Environment and Forestry (central projects) or regional environmental agency | Yes - Required before construction | Government sources |
| 2.3 | Building Permit | Izin Mendirikan Bangunan | Authorizes physical construction of project facilities according to technical standards | District/city government (building permit authority) | Yes - Required before construction | Government sources |
Matrix 2.2: Accelerated Processing Timelines for PSN Permits
| No. | Permit/Non-Permit Type | Indonesian Legal Term | Standard Processing Time (Ordinary Projects) | PSN Maximum Processing Time | Time Reduction Benefit | Delegation Requirement | Legal Basis |
|---|---|---|---|---|---|---|---|
| 2.4 | Environmental Permit | Izin Lingkungan | Often 6-12+ months for complex projects | Maximum 60 working days (approx. 3 months) | 50-75% reduction | Delegated to PTSP where applicable | Government sources |
| 2.5 | Forest Area Use Permit | Izin Pinjam Pakai Kawasan Hutan | Often 6+ months | Maximum 30 working days (approx. 1.5 months) | 75%+ reduction | Delegated to PTSP where applicable | Government sources |
| 2.6 | Tax Facilitation (Income Tax/VAT) | Nonperizinan untuk fasilitas perpajakan (PPh/PPN) | Often 2-3 months | Maximum 28 working days (approx. 1.3 months) | 50%+ reduction | Delegated to PTSP where applicable | Government sources |
| 2.7 | Delegated Permits (Complete Documentation) | Perizinan/nonperizinan yang dilimpahkan atau didelegasikan | Variable by permit type | Maximum 3 working days from complete document receipt | Extremely rapid processing | Must be delegated to Central PTSP through BKPM | Pasal 16(9) |
| 2.8 | Non-Delegated Permits | Perizinan/nonperizinan yang tidak dapat dilimpahkan atau didelegasikan | Variable by permit type | Maximum 30 working days from document receipt | Standardized timeline | Cannot be delegated due to technical requirements | Government sources |
3.0 KPPIP Coordination and PSN Oversight Mechanisms
The Committee for the Acceleration of Priority Infrastructure Provision (Komite Percepatan Penyediaan Infrastruktur Prioritas, or KPPIP) serves as the central coordination body for PSN implementation, obstacle resolution, and project monitoring. KPPIP was originally established through Presidential Regulation No. 75 of 2014 on Acceleration of Priority Infrastructure Provision, issued by President Susilo Bambang Yudhoyono on July 17, 2014. When President Joko Widodo assumed office and issued PERPRES 3/2016, KPPIP's role was expanded and strengthened to encompass comprehensive PSN coordination across all government levels and implementing agencies.
KPPIP membership reflects high-level government commitment to infrastructure acceleration. The committee is chaired by the Coordinating Minister for Economic Affairs (Menko Perekonomian), positioning infrastructure acceleration at the highest economic policy coordination level. Committee members include the Minister of Finance (responsible for budget allocation and fiscal facilitation), Minister of National Development Planning/Head of Bappenas (responsible for development planning integration), and Head of National Land Agency (responsible for land acquisition facilitation). This composition ensures representation from agencies controlling the key resources—funding, planning, and land—required for successful infrastructure implementation.
KPPIP exercises several critical authorities under the amended PERPRES 3/2016 framework. According to government sources, pada Pasal 2 ayat (6), menko perekonomian selaku Ketua KPPIP dapat mengubah daftar PSN setelah disetujui presiden (in Article 2 paragraph (6), the coordinating minister for economic affairs as KPPIP Chair can modify the PSN list after presidential approval). This authority, added through PERPRES 58/2017, enables dynamic PSN list management—removing completed projects, adding new strategic projects, or delisting projects facing insurmountable obstacles. KPPIP conducts evaluations based on established criteria and recommends modifications to the President for approval.
KPPIP's coordination function addresses the central challenge that hindered pre-2016 infrastructure implementation: fragmented government authority across multiple ministries, agencies, and government levels created coordination failures, sequential rather than parallel processing, and unresolved obstacles that stalled projects indefinitely. KPPIP serves as the single coordination point where ministers, governors, and mayors/regents responsible for PSN projects report implementation progress, identify obstacles requiring resolution, and receive coordinated government support for problem-solving. This centralized coordination enables rapid escalation of issues to decision-making authority and prevents projects from languishing in bureaucratic deadlock.
From the initial PSN designation in PERPRES 3/2016, KPPIP further selects priority projects within the broader PSN category. Of the 225 initial PSN projects, KPPIP designated 30 as "Proyek Prioritas" (Priority Projects) receiving even more intensive monitoring and support. This two-tier system enables KPPIP to focus resources on the most critical projects while maintaining broader PSN coverage. The selection criteria for priority designation include project readiness, economic impact magnitude, strategic importance for connectivity or energy security, and potential for rapid implementation with appropriate support.
Matrix 3.1 below details KPPIP's institutional structure, membership composition, core authorities, and coordination functions for PSN implementation.
Matrix 3.1: KPPIP Institutional Structure and Authority
| No. | KPPIP Element | Description | Key Personnel/Agencies | Primary Function | Authority Source | Implementation Impact |
|---|---|---|---|---|---|---|
| 3.1 | Committee Chairmanship | Coordinating Minister for Economic Affairs chairs KPPIP | Menko Perekonomian | Leads PSN coordination; Chairs committee meetings; Approves PSN list modifications (subject to presidential approval) | PERPRES 75/2014; PERPRES 58/2017 amendment | Positions infrastructure acceleration at highest economic policy level |
| 3.2 | Core Committee Members | Ministers and agency heads controlling key resources for infrastructure implementation | Minister of Finance; Minister of National Development Planning/Head of Bappenas; Head of National Land Agency | Coordinate budget allocation; Integrate PSN with national development plans; Facilitate land acquisition | PERPRES 75/2014 | Ensures representation from funding, planning, and land authorities |
| 3.3 | PSN List Modification Authority | KPPIP can modify PSN list based on evaluation, subject to presidential approval | KPPIP Chair (Menko Perekonomian); President (approval authority) | Add new strategic projects; Remove completed or stalled projects; Adjust PSN priorities | Pasal 2(6) per government sources; PERPRES 58/2017 | Enables dynamic PSN management responding to implementation progress |
| 3.4 | Coordination Function | Central coordination point for cross-government PSN support | All ministries/agencies with PSN permitting or facilitation roles | Resolve implementation obstacles; Coordinate multi-agency support; Monitor project progress | PERPRES 3/2016; PERPRES 75/2014 | Prevents coordination failures and bureaucratic deadlock |
| 3.5 | Priority Project Selection | KPPIP selects subset of PSN as "Priority Projects" for intensive monitoring | KPPIP evaluation team | Select highest-priority PSN projects (30 of initial 225); Provide enhanced monitoring and support | KPPIP authority under PERPRES framework | Focuses resources on most critical projects |
Matrix 3.2: PSN Implementation Progress Since 2016
| No. | Implementation Metric | 2016 Baseline (PERPRES 3/2016) | 2017 Update (PERPRES 58/2017) | Evolution Trajectory | Significance |
|---|---|---|---|---|---|
| 3.6 | Total Number of PSN Projects | 225 projects + 1 electricity program | 245 projects + 2 programs (electricity + aircraft industry) | Expanded by 56 projects/programs | Demonstrates growing scope of strategic infrastructure acceleration |
| 3.7 | Total Investment Value | Approximately 4,197 trillion Rupiah | Approximately 5,403 trillion Rupiah (added 1,206 trillion) | 29% increase in total PSN investment | Reflects major capital mobilization for infrastructure development |
| 3.8 | Number of Economic Sectors | 15 sectors | 15+ sectors (aircraft industry added) | Maintained broad sectoral coverage | Ensures infrastructure acceleration benefits multiple economic sectors |
| 3.9 | KPPIP Priority Projects | 30 priority projects selected from 225 PSN | Updated priority selections | Dynamic priority adjustment based on implementation progress | Enables focused support on highest-impact projects |
4.0 Government Agency Implementation Obligations and Facilitation Requirements
PERPRES 3/2016 establishes comprehensive obligations for government officials at all levels to facilitate PSN implementation, prioritize PSN permitting, and actively resolve obstacles hindering project progress. These obligations transform the traditional relationship between government regulators and project proponents—rather than passive permit processing according to standard timelines, government officials become active facilitators responsible for accelerating PSN implementation within legal frameworks.
The regulation mandates that ministers, heads of government agencies, governors, and mayors/regents must prioritize employment generation when implementing PSN projects under their authority. According to government sources, dalam rangka mempercepat pertumbuhan ekonomi nasional, menteri, kepala lembaga, gubernur, dan bupati/walikota selaku Penanggung jawab Proyek Strategis Nasional mengutamakan penciptaan lapangan kerja secara luas dan intensif (in order to accelerate national economic growth, ministers, heads of agencies, governors, and mayors/regents as PSN project leaders prioritize broad and intensive job creation). This employment prioritization requirement links PSN implementation directly to national economic growth objectives and ensures projects deliver benefits beyond physical infrastructure completion.
Government officials must actively monitor PSN implementation progress within their jurisdictions or authority areas. This monitoring obligation requires regular reporting to KPPIP on project status, identification of obstacles requiring resolution, and coordination with other agencies when permits or approvals cross jurisdictional boundaries. The monitoring framework enables early detection of problems—land acquisition disputes, permit processing delays, community opposition, technical challenges—that could derail project timelines if left unresolved.
When obstacles arise, government officials must take proactive measures to resolve issues rather than waiting for project proponents to navigate bureaucratic processes independently. This facilitation obligation represents a fundamental shift from traditional regulatory approaches where government agencies simply respond to applications without responsibility for ensuring approval success. Under PERPRES 3/2016, officials responsible for PSN projects must identify solutions, coordinate with other agencies, escalate unresolved issues to KPPIP, and utilize their authority to overcome regulatory or administrative barriers.
The regulation requires central government ministries and agencies to delegate or transfer PSN permitting authority to the Central PTSP coordinated by BKPM. This delegation centralizes permit processing in a single location rather than requiring project proponents to visit multiple agencies across Jakarta or other cities. Delegation enables parallel processing of multiple permits simultaneously, coordinated review by technical experts from different agencies, and single-window submission and tracking of permit applications. For permits that cannot be delegated due to specialized technical requirements, the regulation still imposes maximum 30-working-day processing timelines.
Regional governments (provinces, districts, cities) face similar obligations to facilitate PSN implementation within their territories. Governors and mayors/regents must issue location permits, building permits, and other regional permits according to accelerated timelines. They must coordinate land acquisition processes, resolve community disputes, provide access to project sites, and ensure regional regulations do not impose obstacles beyond those required by national law. Regional officials who fail to meet PSN facilitation obligations or impose unnecessary barriers face potential intervention from central government or KPPIP escalation to presidential level for resolution.
Matrix 4.1 below details government agency obligations, facilitation requirements, and enforcement mechanisms ensuring active government support for PSN implementation.
Matrix 4.1: Government Agency PSN Facilitation Obligations
| No. | Government Level/Role | Responsible Officials | Core Obligations | Facilitation Requirements | Accountability Mechanism | Legal Basis |
|---|---|---|---|---|---|---|
| 4.1 | Central Government Ministries/Agencies | Ministers; Heads of government agencies | Issue permits according to authority within mandated timelines; Delegate permitting to Central PTSP; Monitor PSN implementation; Resolve obstacles | Delegate permits to BKPM-coordinated PTSP (3-day maximum processing); Process non-delegated permits within 30 working days maximum; Provide technical support; Coordinate with other agencies | Report to KPPIP on permit processing and obstacle resolution; Subject to KPPIP escalation for delays | Pasal 3; Pasal 16(9); Government sources |
| 4.2 | Provincial Governments | Governors | Issue provincial-level permits (location, environment, spatial planning conformity); Coordinate land acquisition; Resolve community disputes; Monitor regional PSN implementation | Process provincial permits according to accelerated timelines; Facilitate land acquisition procedures; Coordinate with district/city governments; Report progress to KPPIP | Report to central government and KPPIP; Subject to central intervention for non-compliance | Pasal 3; Government sources |
| 4.3 | District/City Governments | Mayors (cities); Regents (districts) | Issue local permits (building permits, local environmental permits); Provide site access; Resolve local community issues; Ensure local regulation compliance | Process local permits according to accelerated timelines; Facilitate community engagement; Remove local regulatory obstacles; Coordinate with provincial government | Report to provincial government and KPPIP; Subject to provincial/central intervention for non-compliance | Pasal 3; Government sources |
| 4.4 | KPPIP (Coordinating Body) | Coordinating Minister for Economic Affairs (Chair); Core committee members | Coordinate cross-government PSN support; Monitor overall implementation; Resolve escalated obstacles; Modify PSN list based on evaluation | Conduct regular coordination meetings; Evaluate project progress; Recommend solutions for systemic obstacles; Report to President on PSN status | Direct accountability to President; Authority to escalate unresolved issues to presidential decision | PERPRES 75/2014; PERPRES 3/2016; PERPRES 58/2017 |
Matrix 4.2: Employment Generation and Economic Growth Obligations
| No. | Obligation Type | Indonesian Legal Text | Responsible Officials | Implementation Requirement | National Economic Objective | Article Reference |
|---|---|---|---|---|---|---|
| 4.5 | Broad and Intensive Job Creation Priority | mengutamakan penciptaan lapangan kerja secara luas dan intensif | Ministers, heads of agencies, governors, mayors/regents responsible for PSN projects | Prioritize PSN project designs and implementation approaches maximizing employment generation | Accelerate national economic growth through broad employment expansion | Government sources |
| 4.6 | Public Welfare Improvement | meningkatkan kesejahteraan masyarakat | All PSN implementing agencies | Ensure PSN projects deliver tangible public welfare benefits beyond infrastructure completion | Link infrastructure development to measurable welfare improvements | PSN definition per government sources |
| 4.7 | Regional Development Advancement | pembangunan daerah | Regional governments implementing or hosting PSN projects | Integrate PSN projects with regional development strategies; Ensure equitable development distribution | Reduce regional development disparities; Promote balanced national growth | PSN definition per government sources |
5.0 Implementation Status, Amendments, and Ongoing Evolution
Since its initial implementation in 2016, PERPRES 3/2016 has undergone three significant amendments that expanded PSN coverage, strengthened KPPIP authority, and refined implementation procedures based on operational experience. These amendments demonstrate the regulation's adaptive character—rather than a static framework, the PSN system evolves to address emerging challenges, incorporate new priority sectors, and improve acceleration effectiveness.
PERPRES 58/2017 (First Amendment), issued on June 20, 2017, made several critical changes to the PSN framework. The amendment added 56 new projects and programs to the PSN list: 55 infrastructure projects across existing sectors and one aircraft industry program representing Indonesia's strategic manufacturing ambitions. This addition increased total PSN count from 225 projects and one program to 245 projects and two programs, with approximately 1,206 trillion Rupiah in additional investment value. The amendment also established eight priority criteria for PSN selection, creating standardized evaluation metrics for determining which projects receive PSN designation. Most significantly, the amendment added Pasal 2 ayat (6), granting KPPIP authority to modify the PSN list based on evaluation results, subject to presidential approval. This provision transformed PSN from a static list to a dynamic portfolio responding to implementation progress and changing national priorities.
PERPRES 56/2018 (Second Amendment), issued on June 27, 2018, further updated the PSN list and adjusted implementation procedures based on two years of operational experience. While specific changes are not detailed in available sources, this amendment likely addressed procedural bottlenecks identified during implementation, refined permit delegation procedures, and updated PSN designations to remove completed projects and add new priorities. The amendment demonstrates ongoing government commitment to PSN framework optimization rather than accepting regulatory inefficiencies as inevitable.
PERPRES 109/2020 (Third Amendment), issued on September 28, 2020, represents the most recent PSN framework evolution. This amendment updated PSN lists to reflect projects completed since 2016, added new strategic projects aligned with current development priorities, and continued refinement of KPPIP coordination procedures. The 2020 amendment occurred during the COVID-19 pandemic period when infrastructure investment became critical for economic stimulus and employment generation, potentially influencing PSN selection priorities toward projects with rapid implementation potential and significant employment impacts.
Beyond these formal amendments, the PSN framework has been reinforced through subsequent legislation. Law No. 11 of 2020 on Job Creation (Cipta Kerja Law) elevated PSN concepts from presidential regulation to statutory law level, providing stronger legal foundation for acceleration procedures. Government Regulation No. 42 of 2021 implementing the Cipta Kerja Law established detailed PSN implementation procedures at the statutory regulation level. These higher-level legal instruments demonstrate that PSN acceleration has become embedded in Indonesia's legal framework rather than remaining a temporary presidential policy initiative.
The regulation's impact on Indonesia's infrastructure development has been substantial. Between 2016 and 2020, Indonesia completed numerous PSN projects including toll roads connecting major economic centers, mass rapid transit systems in Jakarta and other cities, new ports and port expansions increasing logistics capacity, power plants adding thousands of megawatts to national electricity supply, and irrigation systems expanding agricultural productivity. These completed projects demonstrate that the acceleration framework delivers tangible results—projects that previously would have required decades to navigate bureaucratic processes now reach completion within presidential administration timelines.
However, implementation challenges persist. Land acquisition remains a significant obstacle despite acceleration procedures—community opposition, land title disputes, compensation negotiations, and spatial planning conflicts continue to delay projects. Environmental concerns arise when accelerated permitting is perceived to compromise environmental assessment quality or public participation opportunities. Coordination failures still occur when regional governments resist central government directives or when inter-agency disputes over authority boundaries create bureaucratic deadlock. Budget constraints limit project implementation when government financing is insufficient and private sector participation proves difficult to secure.
Matrix 5.1 below summarizes the three PERPRES 3/2016 amendments, their key changes, and implementation impact on PSN framework evolution.
Matrix 5.1: PERPRES 3/2016 Amendments and Framework Evolution
| No. | Amendment Regulation | Issue Date | Key Changes | Projects/Programs Added | Implementation Impact | Current Status |
|---|---|---|---|---|---|---|
| 5.1 | PERPRES 3/2016 (Original) | January 8, 2016 | Established PSN framework; Designated initial 225 projects + 1 program; Created accelerated permitting; Assigned KPPIP coordination role | 225 infrastructure projects + 1 electricity program (approx. 4,197 trillion Rupiah) | Created preferential regulatory regime for strategic infrastructure | Amended three times; Core framework remains operative |
| 5.2 | PERPRES 58/2017 (First Amendment) | June 20, 2017 | Added 56 projects/programs; Established 8 priority criteria; Granted KPPIP authority to modify PSN list (Pasal 2(6)) | 55 infrastructure projects + 1 aircraft industry program (approx. 1,206 trillion Rupiah added) | Expanded PSN scope; Enabled dynamic list management; Standardized selection criteria | Integrated into consolidated PERPRES 3/2016 |
| 5.3 | PERPRES 56/2018 (Second Amendment) | June 27, 2018 | Updated PSN list; Adjusted implementation procedures based on operational experience | (Specific additions not detailed in sources) | Refined acceleration procedures; Removed completed projects; Added new priorities | Integrated into consolidated PERPRES 3/2016 |
| 5.4 | PERPRES 109/2020 (Third Amendment) | September 28, 2020 | Updated PSN list; Continued procedural refinement; Adjusted to COVID-19 pandemic context | (Specific additions not detailed in sources) | Reflected completed projects; Potentially prioritized employment-intensive projects for pandemic recovery | Most recent amendment; Currently operative |
Matrix 5.2: PSN Framework Reinforcement Through Higher-Level Legislation
| No. | Legal Instrument | Issue Date | Relationship to PERPRES 3/2016 | Legal Level | Significance | Implementation Status |
|---|---|---|---|---|---|---|
| 5.5 | Law No. 11/2020 on Job Creation (Cipta Kerja) | November 2, 2020 | Elevated PSN concepts from presidential regulation to statutory law | National law (Undang-Undang) | Provides stronger legal foundation than presidential regulation; Harder to amend or repeal | Operative (subject to Constitutional Court decision and replacement) |
| 5.6 | Government Regulation No. 42/2021 | February 2, 2021 | Implements PSN provisions from Cipta Kerja Law at statutory regulation level | Government Regulation (Peraturan Pemerintah) | Details PSN implementation procedures at higher legal level than presidential regulation | Operative |
Conclusion: Strategic Infrastructure Acceleration Through Coordinated Government Support
PERPRES 3/2016 represents a fundamental transformation in Indonesia's approach to infrastructure development—from passive regulatory processing to active government facilitation of strategic projects. By creating a distinct legal category of National Strategic Projects receiving preferential treatment through accelerated permitting, shortened timelines, and coordinated support, the regulation addresses bureaucratic obstacles that previously prevented timely infrastructure deployment. The framework's evolution through three amendments and reinforcement through higher-level legislation demonstrates sustained government commitment to infrastructure acceleration as a core economic development strategy.
The regulation's success depends on sustained implementation of government facilitation obligations, continued KPPIP coordination effectiveness, and balance between acceleration objectives and environmental protection, community rights, and fiscal sustainability. As Indonesia continues infrastructure development to support economic growth and regional equity, PERPRES 3/2016 provides the regulatory foundation for transforming strategic infrastructure visions into completed projects delivering public welfare improvements and development advancement.
Disclaimer
This article was AI-generated under an experimental legal-AI application. It may contain errors, inaccuracies, or hallucinations. The content is provided for informational purposes only and should not be relied upon as legal advice or authoritative interpretation of regulations.
We accept no liability whatsoever for any decisions made based on this article. Readers are strongly advised to:
- Consult the official regulation text from government sources
- Seek professional legal counsel for specific matters
- Verify all information independently
This experimental AI application is designed to improve access to regulatory information, but accuracy cannot be guaranteed.