Government will soon announce a list of infrastructure projects put on hold. Delaying infrastructure projects would help to reduce imports of capital goods which in turn help to stabilize the Rupiah.
The project criteria to be postponed are in the preparation stage, not part of the NSP’ project and not in the financial closing stage.
Last April, the Government decided to trim the number of projects in the list of its NSP due to slow development progress. The government decided to drop 14 projects with worth of Rp264 trillion from the NSP list, which makes this year’s priority projects to reduce to 222 projects, plus three programs. That compared to 245 projects and two programs previously.
Based on the government’s data, the 14 projects among others are Jambi – Palembang railway, East Kalimantan Railway, Water Supply System in North Sumatra, Polesika Dam in Central Sulawesi and Special Economic Zones in Merauke, Papua.