"This number (of employed people) is direct, indirect, and induced," Deputy for Coordination of Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs, Wahyu Utomo, noted in a media briefing here on Tuesday.
Utomo remarked that PSN will continue to create jobs until 2024, as several projects are still in the construction, transaction process, or under preparation stage.
The estimated total direct job absorption through PSN based on investment absorption is 1.95 million people in four years for the 2020-2024 period, he stated.
In detail, the estimated figure is 415,820 people employed in Sumatra, 221,370 people employed in Kalimantan, and 192,976 people employed in Sulawesi.
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Moreover, 696,065 people were employed in Java, 27,925 in Bali and Nusa Tenggara Islands, 157,531 in Maluku and Papua, and 240,709 in other regions.
Utomo explained that the estimate was drawn from the calculation of 200 projects and three programs of PSN and not from all the total 208 projects and 10 programs due to limited information available across the projects, especially in terms of the project scope and investment absorption.
The assessment used in the estimate is the wage proportion that accounts for 25 percent of the investment value, and each person receives 14 months of salary in a year.
National Strategic Projects, according to the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP), among others, comprises airport revitalization, toll roads, bridges, water and sanitation, public transportation, information technology infrastructure, electricity, port, refinery, and so on.
Some of the prevalent projects are the Palapa Ring Broadband project, the Trans Sumatra Toll Road, strategic dams to improve food security, and special economic zones (KEK).
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Translator: Agatha V, Kenzu T
Editor: Suharto
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