Senin, 18 Agustus 2014

TRANS-SUMATRA TOLL ROAD PROJECT STARTS NEXT MONTH

 By Andi Abdussalam  
          Jakarta, Aug 18 (Antara) - The government will soon begin construction of two sections of the Trans-Sumatra toll road, which stretches across 2,771 kilometers from Lampung in eastern Sumatra to Aceh in the western tip of the island.
         Public Works Minister Djoko Kirmanto reported that his ministry will push ahead with the groundbreaking of the construction of two sections of the Rp200-trillion Trans-Sumatra toll road project by the end of September or early October, 2014.
         The construction will mark the beginning of the project, which is expected to help overcome connectivity problems and smooth transportation across Sumatra Island. It is hoped to help improve the flow of goods and transportation of the public, as well as generate economic development on the islands of Sumatra and Java.
         With the project, transportation between Sumatra and Java will also be smooth, as it will link Bakauheni Ferry Port in Lampung with Merak Ferry Port in the western tip of Java Island.
         Minister Kirmanto expressed hope that the groundbreaking will happen before President Susilo Bambang Yudhoyono's term of office ends on October 20, 2014.
         "The groundbreaking is expected to be launched before the end of the Yudhoyono government's cabinet this year. We hope it will be launched at the end of September or early in October," stated Minister Kirmanto on Friday last week (Aug 15, 2015).

 
         Sumatra has an urgent need for toll roads to provide alternatives for transportation of goods and people. The existing Trans-Sumatra Highway, which stretches from Aceh Province in the western tip of Sumatra to Lampung Province in the eastern region, could no longer handle the area's fast growing transportation.
          Additionally, the condition of the existing Trans-Sumatra Highway has deteriorated, as many sections are damaged and need to be repaired every year, causing delays in the transportation of goods and passengers to Java, and vice versa.
         The current government has included the Trans-Sumatra Toll Road project in its MP3EI (Master Plan for the Acceleration and Expansion of Indonesia's Economic Development) development projects in Sumatra.
         Initially, the toll road project was expected to start earlier in December, 2013, and scheduled for completion by 2025. However, the government still faces some constraints, including land clearance, in carrying out the project.
         Therefore, the Yudhoyono government, which had committed to developing the toll road projects in Sumatra, will commence construction of the two sections first.
         Minister Kirmanto said the government has focused its attention on the two sections (before continuing to the other sections, which total 23).
         The two sections cover the 16.8-kilometer Medan-Binjai section in North Sumatra and the 22-kilometer Palembang-Indralaya section in South Sumatra.
         Although the government still faces land clearance problems in the construction of the two sections, Minister Kirmanto is convinced that the government in the remaining two months of its tenure will be able to solve the problem.
         "About 70 percent of the land in the Medan-Binjai section belongs to state-owned companies (BUMN). The Ministry of BUMN is expected to contribute its share in the project, so that no more issues need to be faced with regard to land clearance. If Medan and Binjai are connected with one section, this means 70 percent of the construction has been settled. So, we are optimistic," the minister remarked.
         The minister explained that construction and funding sources of the two toll road sections are currently awaiting the issuance of a legal umbrella in the form of a presidential regulation.
         "A presidential regulation is required, and a discussion has to be held with the coordinating minister for economic affairs in this regard," Kirmanto noted.
         Up to now, the option for the implementation of the project is still expected to fall on PT Hutama Karya, Kirmanto said, referring to the state-owned toll road construction firm.
         Early last year, then Finance Minister Agus Martowardojo had expressed hope that PT Hutama Karya will take the initiative to construct the toll roads. "We fully support the construction of toll roads," he had said.
         Agus stated that several alternatives for PT Hutama Karya--a state company set up to implement infrastructure projects--to finance the toll road projects were available. 
    "The alternatives included the options of offering state capital investment, or issuing bonds, by either the government or PT Hutama Karya itself," he pointed out.

         Therefore, he called for a feasibility study. "We will completely support it, but it will be better if PT Hutama Karya could conduct a feasibility study, which will help us coordinate better with the government and also with the Toll Road Regulator Agency (BPJI) on the issue."
    For the construction of the two sections, according to Public Works Minister, the government had earlier predicted that the construction of the Medan-Binjai section will cost Rp2 trillion, while the Palembang-Indralaya section will cost Rp1 trillion.

         The National Development Planning Board (Bappenas) has asserted that the funding options of the two sections could possibly be taken from the State Capital Participation (PMN) or from the Government Investment Center (PIP).
         "(Regarding the development of the Trans-Sumatra Toll Road project), we focus on the two sections. We have PMN as an option for funding," Bappenas Deputy Head for Infrastructure and Facility Affairs Dedy Supriadi Priatna said on Monday (Aug 11).
         The 2,771-kilometer Trans-Sumatra Toll Road, which will link provinces across Sumatra, from Aceh in the west to Lampung in the east, consists of 23 sections.
         The project, estimated to cost Rp200 trillion, is expected to be included in the map of the ASEAN Highway Network and is scheduled for completion by 2025. ***2***
(T.A014/INE/B003)
EDITED BY INE
(T.A014/A/BESSR/Bustanuddin) 18-08-2014 20:36:

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