Special Support for Tycoon Projects
The Indonesian government has designated the development projects of the Pantai Indah Kapuk (PIK) area in Banten and the Bumi Serpong Damai (BSD) Integrated Area in South Tangerang as national strategic projects (PSN). Haryo Limanseto, the Coordinating Economic Affairs Ministry spokesperson, stated that the investment value for both PSN projects reached Rp 83.54 trillion. "All financing comes from the private sector and does not require state budget support," he said on Mar. 24.
The government will develop PIK 2 in collaboration with the Agung Sedayu Group, owned by conglomerate Sugianto Kusuma, also known as Aguan. This project involves the development of green areas and an eco-city with an investment of Rp 65 trillion, employing 6,235 direct workers and 13,550 workers as multiplier effects. The project, named Tropical Coastland, covers an area of 1,756 hectares and is intended to be a new tourist destination.
Meanwhile, the BSD Integrated Area development is carried out on 59.6 hectares, with a potential investment of Rp 18.54 trillion. This project involves the development of the Education - Biomedical - Digital area and will become a Biomedical Area Special Economic Zone (KEK Biomedical Area) for up to 30 years. The initial development in 2024 will begin with the opening of the BioMedical Campus. The areas prepared as SEZ 1 will be traversed by the Serpong-Balaraja Toll Road, and SEZ 2 will be traversed by the Serpong-Balaraja Toll Road section 1B.