Megaprojects as a “space of exception”: Unraveling institutional and policy dynamics in Indonesia’s national strategic projects agenda

Abstract

This study explores the relationship between megaproject development and state restructuring in the Global South, using Indonesia’s National Strategic Projects (Proyek Strategis Nasional, or PSN) as a case study. While existing literature has identified megaprojects as instruments of spatial transformation, this research advances the debate by showing how megaprojects are not merely products of exceptional governance but also instruments of institutional rearrangements. It argues that Indonesia’s infrastructure-led development strategy systematically institutionalizes “spaces of exception,” enabling the central government to bypass formal decentralization frameworks and recentralize authority. Through an analysis of policy reforms and elite interviews, the study demonstrates how megaprojects reshape governance structures, undermine regional autonomy, and recalibrate power relations across scales. It argues that megaprojects function not only as instruments of development but also as mechanisms through which emergent forms of state power are exercised, legitimized, and consolidated. This research contributes to critical debates on the political geographies of infrastructure-led development, raising questions about the implications of these shifts for democratic governance and equitable regional development.