Private estate: Prabowo on his visit to Egypt. The President’s revocation of strategic designation for the coastal development follows legal and spatial planning violations, yet officials and developers insist the project momentum remains intact. — AFP
JAKARTA: President Prabowo Subianto has revoked the National Strategic Project (PSN) status for the PIK 2 development owned by Sugianto “Aguan” Kusuma’s Agung Sedayu Group and Salim Group following a Supreme Court ruling declaring the project’s designation unlawful.
Coordinating Economy Minister Airlangga Hartarto said on Monday that the government had only granted PSN status to the tourism-related segment of the project, not its broader real estate development, and that the delisting followed a formal review.
“It has indeed been revoked. What was granted was for the tourism programme, not the property one,” Airlangga told reporters on Monday.
Despite the removal, he insisted that the project would proceed. “The investment will continue, it won’t be affected,” he added.
The PIK 2 project, located along the northern coast of Jakarta and Tangerang, Banten, was dropped from the updated PSN list under Regulation No. 16/2025 issued by the Office of the Coordinating Economy Ministry on Sept 24.
Indinesia’s Supreme Court ruled that the project’s designation under the Office of the Coordinating Economy Minister Regulation No. 12/2024 conflicted with higher legal norms and violated spatial planning rules, as parts of the “tropical coastland” development sits on protected forest land. The ruling also declared the prior PSN decree void.
Agrarian and Spatial Planning Minister Nusron Wahid last year raised concerns over PIK 2’s compliance with regional and provincial spatial plans and argued that the project lacked the required detailed spatial plan.
PIK 2 was added to this year’s PSN list after then-president Joko “Jokowi” Widodo approved it during a limited cabinet meeting in March last year.
First introduced by Jokowi in 2015, the PSN list has historically prioritised large-scale infrastructure and other projects deemed crucial for driving economic growth and improving social welfare in the country.
Under Government Regulation No. 42/2021, PSN-status projects enjoy wide-ranging government support, from fast-tracked licensing and land acquisition assistance to connectivity infrastructure and priority in permit issuance.
The tourism-linked portion of the project has the backing of the Tourism Ministry and was financed without state budget support.
PIK 2’s PSN status had been contentious from the get-go, with critics saying it granted preferential treatment to a private coastal real estate venture and came with conflict of interest risks, given the developer’s role in developing the planned capital city of Nusantara in East Kalimantan, a pet project of the former president.
The Office of the Coordinating Economy Minister last year defended the move, saying there was “nothing political about the decision” and it could support equitable economic development across the archipelago and create jobs.
Publicly-listed PT Pantai Indah Kapuk Dua, which implements the project, said the decision would not affect the project. — The Jakarta Post/ANN
